The contactless payments Market is estimated to be valued at US$ 15782.66 Mn in 2023 and is expected to exhibit a CAGR of 13.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Contactless payments enable customers to make transactions for low-value purchases under $25-50 by waving their contactless credit/debit card or mobile devices near a payment terminal, without requiring a PIN. This offers a smooth and convenient payment experience compared to traditional chip and PIN card payments. Contactless payments are gaining traction across retail stores, restaurants, transportation sectors and other online/offline merchants.
Market Dynamics:
Convenience and speed are the major drivers propelling the growth of contactless payments market. Contactless cards and mobile wallets allow customers to pay for goods or services with just a single tap or wave, saving significant time at checkout counters compared to inserting cards and entering PINs. Additionally, the COVID-19 pandemic has accelerated the shift towards digital and contactless payments globally as customers prefer touch-free transactions for safety reasons. Governments and central banks across countries are also supporting the adoption of digital payments by increasing contactless payment limits and providing incentives to merchants and customers. However, data privacy and security continue to be a challenge due to risks of cybercrimes, thereby restricting the contactless payments market growth to some extent.
Segment Analysis
The global contactless payments market is segmented by device type into point of sale (POS) terminals, integrated point of sale (POS) terminals, and smart cards. Among these, the POS terminals segment currently leads the market and accounts for over 30% share, owing to the increasing installation of POS terminals that support contactless payment technologies across retail stores, restaurants, transportation systems and other businesses. Within POS terminals segment, the integrated POS terminals sub-segment is witnessing higher growth compared to conventional POS terminals as they acts as all-in-one solution and reduce overall hardware requirement for merchants.
PEST Analysis
Political: Governments across countries are introducing favorable regulations to promote adoption of digital payments and providing incentives to merchants for installing contactless payment acceptance infrastructure. This is positively impacting market growth.
Economic: With economic growth and rising disposable incomes, consumers spending ability is increasing. This has boosted adoption of cashless and contactless payment modes for convenience.
Social: Younger demographic is showing higher usage of digital wallets and contactless cards due to speed and convenience offered compared to cash. This changing consumer behavior is fueling market demand.
Technological: Continuous innovation in contactless payment technologies is making transactions more secure and user-friendly. Introduction of technologies like Host Card Emulation (HCE) is supporting growth.
Key Takeaways
The Global Contactless Payments Market Growth is expected to witness high, exhibiting 13% CAGR over the forecast period, due to increasing digitalization and promotion of cashless transactions by governments worldwide. The market size for 2023 is estimated at US$ 15,782.66 Mn.
The Asia Pacific region is expected to witness the fastest growth in the contactless payments market during the forecast period. This can be attributed to rising disposable incomes, expanding middle class population and increasing government focus on digitization of payments in countries like China and India.
Key players operating in the contactless payments market are Thales Group, Infineon Technologies AG, Ingenico Group, Wirecard, VeriFone, Inc., Giesecke+Devrient GmbH, IDEMIA, Track Innovations LTD., Identiv, Inc., CPI Card Group Inc., Setomatic Systems, Valitor, PAX, PINPAD, Mobeewave, alcineo, and Paycor, Inc. Infineon Technologies AG and Thales Group hold a significant share of the market, owing to their extensive product portfolio and geographical presence.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
