Global Contactless Payment Market Overview
The key driver impacting the contactless payment market is the rapidly growing consumer adoption for contactless payment technologies, which is estimated to boost the market in the forecast period. The Covid-19 pandemic and recommendation by the World Health Organization for using contactless payments to reduce transmission of the virus through cash led to high adoption of contactless payments by people globally. For instance, as per the recent survey data from RTi Research shows that 30 percent of consumers in the U.S. have started using contactless payment methods to reduce risk as the pandemic began. Over 70 percent of new contactless users consider they will continue using payment method even after the pandemic drive away. In July 2019, American Express had upgraded existing customers with contactless cards, also when cards expire or upon customer demand, and issued contactless cards to all new customers. In 2019 Visa shot past around 100 million contactless-enabled cards in 2019 and now anticipate to have 300 million cards in circulation by the end of 2020. Moreover, expanding usage of contactless technologies in various applications such as vending machines, toll booths, ticketing, and fuel stations is estimated to be a significant factor that positively impacts market growth.
According to Value Market Research, the global contactless payment market was valued at around USD 1050 billion in 2020 and is estimated to grow at a CAGR of about 20% during the forecast period of 2021 to 2027.
The rapidly growing retail sector is estimated to augment contactless payments demand in the forecast period as it provides various benefits to retailers and buyers, both such as expanded revenue, faster transaction times, enhanced operational efficiency, and lower operating costs. for instance, according to the Crescendo Worldwide Organisation, Global retail market sales amounted to around $24 Trillion in 2018. It is estimated that worldwide retail sales amounted to approximately $30 Trillion by 2023, increasing up from about $23 Trillion in 2017. Globally Indian retail industry is one of the fastest-growing, and its recorded sales of US$ 2.47 billion in 2019 is anticipated to reach Rs. US$ 1.1 trillion by 2020 as per the India Brand Equity Foundation. however, the risk of stolen or lost contactless cards may hamper the global contactless payment market in the long run. also, the high cost of deploying contactless payment technologies negatively impacts market growth. The current industry trends, usage of security features of emerging technologies, such as blockchain and 5G, and increasing application of contactless payment in transportation are expected to provide market players with several market opportunities.
The contactless payment market is vast, with many local and global players. the key leaders follow different strategies to improve their market position, such as contracts, mergers, contracts, extending product portfolio, acquisitions, expansions, and product innovations to improve their market share globally. For instance, In October 2019, IDEMIA and Mobeewave expanded their partnership to install secure mobile PoS and fare validation in Australia. The key players included in the report are Gemalto, Heartland Payment Systems, Inc., Visa Inc., Verifone, Giesecke & Devrient GmbH, Ingenico Group SA, IDEMIA, Wirecard AG., On Track Innovations Ltd., and Thales Group.
In this research report, the contactless payment market is segmented by device, solution, application, and region.
Analysis by Devices:
By device, the report is categorized into smartphones and wearables, point-of-sale terminals, smart cards. Smartphones and wearables dominate the device segment with over 55% share in 2020. It is due to the use of smartphones has drastically increased in day to day activities for payments. Moreover, technological innovations in wearables such as payment bands and payment rings contribute to the high demand for smartphones and wearables in the forecast period.
Analysis by Solution:
By solution, the report is categorized into payment terminal solution, transaction management, security and fraud management, hosted point-of-sales, and analytics. The payment terminal solution dominates the solution segment with over 42.5% share in 2020. It is due to the customers growing concerns related to security and fear of fraud that makes them opt for payment terminal solutions for payments. Moreover, the latest technological advancements have led to the invention of new ways of authentication, such as fingerprint authentication, for contactless payments, contribute to the high demand for payment terminal solutions in the forecast period.
Analysis by Application:
By applications, the report is categorized into retail, transportation, healthcare, hospitality, and government. The retail sector dominates the application segment with over 60% share in 2020. It is due to the rising number of ‘tap-and-go’ transactions across the globe as it speeds up the check-out process. Moreover, the high adoption of contactless payments systems in various service businesses, such as gas stations, movie theaters, convenience stores, and restaurants, drives the market demand from the retail sector in the forecast period.
Analysis by Region:
In the regional outlook of the global contactless payment market, the Europe region dominates with a 33% market share during the forecast period. It is due to the high adoption of Near Field Communication (NFC) technology and growing regulatory initiatives such as Euro Mastercard Visa (EMV), the global standard for chip cards. Moreover, the high penetration rate of smartphones and increasing advancements in smart chip technology contributes to the development of the contactless payment market across Europe.
Market Segmentation covered in the Report:
- Smartphones and Wearables
- Point-of-Sales Terminals
- Smart Cards
- Payment Terminal Solution
- Transaction Management
- Security and Fraud Management
- Hosted Point-of-Sales
- North America
- The Asia Pacific
- Latin America
- The Middle East and Africa
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