July 14, 2024

Contactless Payments Market Is Estimated To Witness High Growth Owing To Increasing Adoption of Contactless Payment Technologies in Various Industries

The Contactless Payments Market is estimated to be valued at US$ 12,316.5 Mn In 2021 and is expected to exhibit a CAGR of 13.2% over the forecast period 2022-2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

The Contactless Payments Market is witnessing significant growth due to the increasing adoption of contactless payment technologies across various industries. Contactless payment allows users to make secure and convenient payments by simply tapping their mobile phones or contactless cards on the payment terminals. This technology eliminates the need for physical cash or card insertion, providing a faster and more convenient payment experience. Contactless payment is widely being adopted in sectors such as retail, transportation, healthcare, and hospitality, among others. The ease of use, improved security, and faster transaction speed are driving the adoption of contactless payment solutions, thus fueling the growth of the market.

Market Dynamics:

The drivers for the growth of the Contactless Payments Market include the increasing adoption of smartphones and wearable devices, advancements in technology, and the growing trend of digital payments. The convenience and speed offered by contactless payment technologies are attracting customers and merchants alike. Additionally, the ongoing COVID-19 pandemic has further accelerated the adoption of contactless payment solutions, as it reduces the risk of physical contact and the potential spread of the virus. Furthermore, the opportunity for market growth lies in the development of advanced authentication and security measures to enhance the trust and confidence of users in contactless payment technologies. However, challenges such as security concerns and interoperability issues may hinder market growth to some extent. Overall, the Contactless Payments Market is expected to witness high growth in the coming years, driven by the increasing demand for secure and convenient payment options.

Segment Analysis:

The contactless payments market can be segmented based on technology, application, and region. In terms of technology, the dominating segment is NFC (Near Field Communication). NFC technology enables secure and convenient contactless payments using smartphones, smart cards, or wearable devices. It allows users to make payments by simply tapping their devices on a contactless payment terminal. The dominance of NFC can be attributed to its widespread adoption and compatibility with a wide range of devices. Other technologies like RFID (Radio Frequency Identification) and QR codes also contribute to the market, but to a lesser extent.

PEST Analysis:

Political: The political landscape plays a crucial role in shaping the contactless payments market. Regulations and policies regarding data protection, privacy, and consumer rights impact the adoption and implementation of contactless payment solutions.

Economic: The economic factors such as GDP growth, disposable income, and consumer spending patterns influence the demand for contactless payment solutions. As the global economy continues to recover, consumer preference for secure and convenient payment methods is driving the growth of the contactless payments market.

Social: The societal shift towards digitalization and the increasing reliance on mobile devices have contributed to the adoption of contactless payments. The convenience and speed offered by contactless payments align with the changing social preferences of consumers.

Technological: Advancements in technology, particularly in the fields of mobile payments, communication networks, and security, have facilitated the growth of the contactless payments market. The development of secure encryption methods and advancements in NFC technology have made contactless payments more secure and reliable.

Key Takeaways:

The Global Contactless Payments Market Demand is expected to witness high growth, exhibiting a CAGR of 13.2% over the forecast period. This growth is primarily driven by the increasing adoption of digital payment solutions worldwide, coupled with the need for fast and secure transactions.

In terms of regional analysis, North America is expected to be the fastest-growing and dominating region in the contactless payments market. This can be attributed to the high penetration of smartphones, the presence of established payment infrastructure, and the active participation of key market players in the region.

Some of the key players operating in the contactless payments market include Thales Group, Infineon Technologies AG, Ingenico Group, Wirecard, VeriFone, Inc., Giesecke+Devrient GmbH, IDEMIA, and others. These companies are focusing on innovations, partnerships, and mergers to strengthen their market presence and expand their product portfolios

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it