Global Contactless Payment Market Forecast 2035
According to the report, the global contactless payment market is likely to grow from USD 13.2 Billion in 2025 to USD 34.1 Billion in 2035 at a highest CAGR of 9.0% during the time period. The contactless payment market in the world is experiencing a robust growth due to the high rate of accepting digital wallets, NFC-powered cards and mobile based payment solution that can give the convenience and fast speed coupled with improved security. Contactless payments are now the new reality in the retail, transportation, and hospitality industry due to an increased consumption of cashless transactions which are increased by the COVID-19 pandemic. Banks and other fintech providers are investing a lot in new payment technologies, and regulators in various parts of the world are actively advocating secure, standards-spanning identities to promote their use. Also, the growing usage of smartphones and wearables devices has expanded the concept of contactless transactions to not just retail but also peer-peer transfers and transport services. As an example, Mastercard and Visa have increased tap-to-pay systems around the world, whereas Apple Pay and Google Pay are increasing the use of mobile wallets. Expanding knowledge about hygiene and the necessity to have quick and frictionless checkout processes only add to the position of contactless payments as an essential force in the digital financial ecosystem.
“Key Driver, Restraint, and Growth Opportunity Shaping the Global Contactless Payment Market
One of the factors that have contributed significantly to the global contactless payment market is the increasing collaboration between internet of things (IoT) and smart devices and payment ecosystems. Connected homes, smartwatches, and fitness trackers are also gaining secure payment functions that can make transactions quicker and motivate people to pursue solutions that are contactless in their daily lives.
The main limitation is the disparity in developing infrastructures in emerging economies as the presence of few POS terminals and uneven merchant acceptance do not allow mass adoption of contactless payments. The rural or underbanked areas have small businesses that are not always technologically ready and hence they can hardly penetrate the market even though consumers show interest.
The growth of biometric authentication that includes fingerprints and facial recognition embedded in contactless cards and mobile wallets is a huge prospect. This promotion will not only increase the security of transactions and the confidence of the users in making such payments especially with high values but also will pave way to greater adoption in various fields such as healthcare, banking, and transportation.
Expansion of Global Contactless Payment Market
“Expansion of Global Contactless Payment Market Driven by Consumer Behavior, Retail Digitization, and Public Transit Adoption”
- The growth of the contactless payment market around the world is also driven by the change in the preferences of the consumers to speed and convenience as it is claimed that contactless payments are 10 times faster than the traditional chip-and-PIN technologies. Recent industry findings indicate that over 70 percent of customers globally would want touch-free transactions after the pandemic forcing financial institutions and retailers to modernize payment systems. This attitude change supports the steady development of the world.
- One of the crucial aspects is the increased speed of digitalization in the retail sector, in which online and offline sellers are implementing contactless-driven solutions. Large retailers like Walmart and Carrefour have implemented an NFC-based payment system which has facilitated quicker check out process and minimised operational points of bottlenecks. Such digitization of retail ecosystems does not only make the customer experience smoother but also prompts merchants to become loyal to contactless.
- Moreover, contactless fare cards and mobile wallets are increasingly rearing their heads in the public transit systems of Europe, Asia, and Latin America to bring modernization in the collection of fares. Sharp increases in contactless ticketing have been recorded in cities such as London, Singapore, and Sao Paulo with transit authorities recording a doubledigit increase in NFC-based fare transactions. These massive rollouts are drivers of massive adoption in both developed and emerging markets.
Regional Analysis of Global Contactless Payment Market
- Contactless payment demand in the Asia Pacific region is the highest, as mobile-first economies dominate and the number of digital ecosystems is expanding rapidly. Mobile wallet penetration is the highest in countries like China, India, or South Korea, and platforms like Alipay, WeChat Pay, or Paytm are changing how people conduct their daily transactions. The area is home to almost 60 percent of all mobile wallet users in the world and it is facilitated by government-backed projects such as India’s Unified Payments Interface (UPI) and the pilot of the digital yuan in China. Moreover, the age factor, a high smartphone penetration index, and the boom of e-commerce and super apps (ex: Grab and Gojek) continue to increase Asia Pacific as the biggest contactless payment consumer group.
- The two ingredients of growth that are the most dominant in North America are the high rate of modernization of infrastructure and good uptake of contactless-enabled debit and credit cards by mainstream banks. The U.S. financial institution market has over 80 percent of new card issuances with contactless Ness capabilities, which are in line with the speed, safety and hygienic transactions that consumers desire. Moreover, the adoption is being accelerated by the combination of wearables (Apple Watch, Fitbit Pay) and loyalty-based mobile payment options offered by the retailers such as Starbucks and Walmart. As the volume of cross-border transactions and the need to use safe fintech solutions is increasing, North America has the fastest-growing regional market, even though payment infrastructure is already entirely developed.
Prominent players operating in the global contactless payment market are Adyen N.V., Alipay (Ant Group), Amazon Pay, American Express Company, Apple Inc., Barclays plc, Fiserv, Inc., Google LLC (Google Pay), Ingenico Group (Worldline), JPMorgan Chase & Co., Mastercard Incorporated, NCR Corporation, PayPal Holdings, Inc., Samsung Electronics Co., Ltd. (Samsung Pay), Square, Inc. (Block, Inc.), Stripe, Inc., Tencent Holdings Ltd. (WeChat Pay), Thales Group, Verifone Systems, Inc., Visa Inc., and Other Key Players.
The global contactless payment market has been segmented as follows:
Global Contactless Payment Market Analysis, by Component
- Hardware
- POS Terminals
- NFC-enabled Devices
- Smartcards
- Others
- Software
- Payment Applications
- Transaction Management Systems
- Others
- Services
- Consulting
- Integration & Deployment
- Support & Maintenance
- Others
Global Contactless Payment Market Analysis, by Payment Mode
- Contactless Cards
- Credit Cards
- Debit Cards
- Prepaid Cards
- Wearables
- Smartwatches
- Fitness Bands
- Others
- Mobile Devices (Smartphones using NFC or QR-based apps)
- Others
Global Contactless Payment Market Analysis, by Technology
- Near Field Communication (NFC)
- Radio Frequency Identification (RFID)
- QR Code-Based Payments
- Bluetooth Low Energy (BLE)
- Others
Global Contactless Payment Market Analysis, by Transaction Type
Global Contactless Payment Market Analysis, by Application
- Retail
- Transportation (Transit Fare Payments, Toll Payments)
- Healthcare
- Hospitality
- Banking & Financial Services
- Government & Public Sector
- Others
Global Contactless Payment Market Analysis, by End User
- Individuals/Consumers
- Enterprises (SMEs & Large Enterprises)
- Government Organizations
- Others
Global Contactless Payment Market Analysis, by Industrial Vertical
- Retail & E-commerce
- Telecommunications
- Healthcare
- Banking, Financial Services & Insurance (BFSI)
- Transportation & Logistics
- Entertainment & Media
- Others
Global Contactless Payment Market Analysis, by Region
- North America
- Europe
- Asia Pacific
- Middle East
- Africa
- South America
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