The Global Contactless Payment was valued at US$ 1,493.2 Bn in 2020, and is expected to reach US$ 5,490.2 Bn by 2027, expanding at a CAGR of 21.1% during the forecast period.
The market is witnessing growth as countries across the globe are increasingly using contactless payment options to ensure safety and faster transactions during the ongoing pandemic situation. Adoption & implementation of contactless payments technology among merchants is one of the other factor that propels the market growth.
Factors such as increasing adoption of digital payments, technological advancements in payment devices and rising demand for mobile & wearable payment devices are boosting the growth of the contactless payment market. In addition, integration of IoT & contactless payment technologies along with abundant untapped potential of developing economies are projected to provide profitable opportunities for the contactless payment solution providers in the near future.
The research report analyses the ecosystem of Contactless Payment market and categorizes the Contactless Payment Market to forecast the revenues and analyse the trends in each of the following below mentioned market segments.
Contactless Payment Market by Device
Contactless Payment Market by Application
The unique insights provided by this report also includes the following:
By Device, the Smart Cards is expected to witness high growth rate during the forecast period
Based on device, the global contactless payment market is segmented into smartphones & wearables, smart cards and point-of-sales (POS) terminals.
Smartphones & wearables segment accounted for the largest market share in 2020, followed by point-of-sales (POS) terminals. Smartphones & wearables market is expected to maintain its dominance throughout the analysis period (2017-2027) and is expected to grow at a high CAGR of 19.5% during the forecast period (2021-2027).
The usage of smartphones has increased in the built-in Near Field Communication (NFC) technology, to communicate with the contactless payment capable POS system. The mobile handsets with NFC technology are capable for payments at both locations such as normal stores and unattended locations. Technological advancements in wearables such as smartwatches and wristbands are becoming major trends in the market owing to its easy usage and option of integrating it with mobile handsets.
By Application, the Food & Groceries is estimated to be a larger application segment in the Contactless Payment market in 2020
Food & Groceries segment accounted for the largest market share in 2020, followed by Restaurant & Bars. Food & Groceries market is expected to maintain its dominance throughout the analysis period (2017-2027) and is expected to grow at the CAGR of 18.2% during the forecast period (2021-2027).
Food & grocery stores are primarily engaged in retailing a general range of food products. Increased adoption & implementation of contactless payment services by various food & grocery stores owners for improving the ease and speed of the transaction has propelled the growth of the market. Additionally, several hotels, bars, & restaurants across the globe are adopting contactless payments devices for enhancing the customer experience and improving their profit.
By Region, the Asia Pacific is expected to grow with the highest CAGR during the forecast period.
Europe is holding the largest market share in the year 2020 due to continuous technological advancement and high demand from countries, such as the U.K., Germany and France. Moreover, the firms in various European countries are using contactless payment technologies to facilitate business transactions between counterparties and driving operational efficiencies, which further fosters the growth of this region.
The key players operating in the global contactless payment market includes Gemalto N.V., Giesecke & Devrient GmbH, Visa Inc., Heartland Payment Systems, Verifone Systems Inc., Ingenico Group SA, On Track Innovations (OTI) Ltd, IDEMIA, Thales Group, Wirecard AG among others. The market dominance of these companies is characterized by their product portfolio, high investment in R&D activities, revenue, capital expenditure, employee strength, and geographical presence of companies.
The report also provides in-depth analysis of market dynamics such as drivers, restraints opportunities and challenges
Snapshot of Drivers, Opportunities and Restraints of Global Contactless Payment Market
|Increased focus on cashless payments & digital identification by retailers, merchants, regulatory bodies, and shop owners to minimize person-to-person interactions and human contact||Positive|
|2||Increasing adoption and investments in contactless payments solutions by the FinTech & banking industry||Positive|
|3||New directives & regulations by various governments promoting technology-driven transformations in payment industry||Positive|
|4||Growing demand for mobile and wearable payment devices||Positive|
|5||Emergence of digital currency||Positive|
The report also provides in-depth analysis of recent News and Developments
|Sr||Recent News and Developments|
|1||In December 2020, TymeBank partnered with IDEMIA to bring contactless payment cards in South Africa country. This partnership delivers TymeBank consumers contactless EMV bank card and offers secure and convenient payment services.|
|2||In October 2020, Ingenico launched smart self for vending solution. It offers consumers numerous benefits such as real-time reporting, secure payment processing, smart transactions management, and acquiring capabilities.|
|3||In October 2019, Giesecke & Devrient Mobile Security GmbH partnered with HIT to combine patented technology and global manufacturing excellence. This partnership produces metal cards that helps financial institutions to allow their customers affluent and high net-worth payment services.|
Company Profiles and Competitive Intelligence
The key players operating in the market are:
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