Contactless payments refer to payment methods that do not require direct physical contact between the payment device and the POS terminal to initiate the payment. Contactless cards, contactless payment-enabled mobile phones, and contactless fobs are commonly used for contactless payments. Growing adoption of digital payments and proliferation of smartphones with Near Field Communication (NFC) technology are some of the key factors driving the growth of contactless payments market. Contactless cards and contactless payment-enabled smartphones require just a tap on POS terminals to complete the payment transaction without entering PIN. This offers convenience and faster checkout experience for customers. Retailers are also embracing contactless payments as it speeds up transactions and improves checkout efficiency.
The global Contactless Payments Market is estimated to be valued at US$ 15782.66 Mn in 2023 and is expected to exhibit a CAGR of 4.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Growing adoption of digital payments technology among consumers across the globe is a major driver of the contactless payments market. Introduction of innovative payment platforms by fintech companies and deployment of contactless payment-enabled POS terminals by retailers are increasing consumer exposure to contactless payment options. Moreover, proliferation of smartphones with NFC technology is further facilitating growth. According to a survey, over 80% of consumers have used contactless payments at least once in 2020. Consumers find contactless payments more convenient and secure compared to cash payments. Growing consumer inclination towards fast and seamless transaction experience is expected to boost adoption of contactless payments over the forecast period.
The contactless payments market is segmented into technology, end-user, and mode of payment. Technology-wise, the Near Field Communication (NFC) technology segment dominates the market, accounting for over 60% of the market share. NFC technology enables secure contactless transactions between devices like smartphones and POS terminals. It has emerged as the preferred technology due to hassle-free usage and high adoption globally.
Political: Government regulations encourage migration from cash to digital payments for security and ease of transactions. Data security laws regulate protection of consumer data.
Economic: Strong economic growth and increasing digitization drive higher consumer spending. Rising internet and smartphone penetration boost market expansion. Higher GDP expenditure per capita increases affordability.
Social: Younger demographic prefers contactless payments over cash for convenience. Rising security concerns urge preference for secure digital payments. Customers seek innovative payment technologies.
Technological: Advancements in NFC technology and EMV chip standardization accelerate market growth. Integration of biometrics with digital wallets enhances security. 5G commercialization will boost mobile commerce and contactless applications.
The Global Contactless Payments Market Size is expected to grow from US$ 15782.66 Mn in 2023 to US$ 23471.12 Mn by 2030, at a CAGR of 4.0%.
North America dominates with over 30% share owing to high adoption of digital payments and presence of key players. Asia Pacific region is expected to grow the fastest at 6.0% CAGR due to rising internet usage, urbanization and government initiatives for digital economy in countries like India and China.
Key players operating in the contactless payments market are F. Hoffmann-La Roche AG, Boehringer Ingelheim, Bayer AG, Pfizer Inc., Biogen, Daiichi Sankyo, Bristol-Myers Squibb, Johnson & Johnson, AstraZeneca, SanBio and Athersys Inc. Key players are focusing on strategic partnerships and new product development to gain an edge in the competitive market.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it