Contactless Payments

Contactless Payments

Global Contactless Payments Market to Reach US$144.6 Billion by 2030

The global market for Contactless Payments estimated at US$47.3 Billion in the year 2023, is expected to reach US$144.6 Billion by 2030, growing at a CAGR of 17.3% over the analysis period 2023-2030. Smartphone-Based Contactless Payments, one of the segments analyzed in the report, is expected to record a 19.0% CAGR and reach US$92.8 Billion by the end of the analysis period. Growth in the Card-Based Contactless Payments segment is estimated at 14.7% CAGR over the analysis period.

The U.S. Market is Estimated at US$12.7 Billion While China is Forecast to Grow at 23.3% CAGR

The Contactless Payments market in the U.S. is estimated at US$12.7 Billion in the year 2023. China, the world`s second largest economy, is forecast to reach a projected market size of US$36.2 Billion by the year 2030 trailing a CAGR of 23.3% over the analysis period 2023-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 12.5% and 14.8% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 13.6% CAGR.

Global Contactless Payments Market - Key Trends & Drivers Summarized

How Is The Shift Towards Digital Payments Accelerating The Contactless Payments Market?

The global contactless payments market is expanding rapidly, driven by a widespread shift towards digital payment methods. This shift is fueled by consumer preferences for faster, more secure, and convenient payment options. With the rise of e-commerce and digital wallets, consumers increasingly favor contactless transactions, which provide seamless experiences both online and in-store. The COVID-19 pandemic further accelerated this trend, as hygiene concerns prompted a move away from cash and contact-based payment methods towards contactless solutions such as Near-Field Communication (NFC) and Radio Frequency Identification (RFID) technologies. Financial institutions, retailers, and tech companies are all investing in expanding their contactless payment offerings to cater to this growing demand, enhancing the global financial ecosystem`s efficiency and inclusivity.

What Technological Developments Are Shaping The Future Of Contactless Payments?

Technological advancements are crucial in shaping the future of the contactless payments market. Innovations such as biometric authentication, blockchain technology, and tokenization are enhancing the security and reliability of contactless transactions. Biometric methods, including fingerprint and facial recognition, add an extra layer of security, making transactions more secure and reducing fraud risks. The integration of blockchain technology into payment systems promises greater transparency, traceability, and security in contactless transactions. Additionally, tokenization—replacing sensitive card information with unique digital identifiers—is gaining traction as it minimizes data theft and fraud during transactions. Moreover, the proliferation of wearable devices, such as smartwatches and rings equipped with payment capabilities, is providing consumers with more flexible payment options, further boosting the adoption of contactless payments.

How Are Regulatory Changes And Consumer Preferences Driving Contactless Payments Adoption?

Regulatory changes and evolving consumer preferences are pivotal in driving the adoption of contactless payments. Governments and financial regulators worldwide are raising contactless transaction limits to encourage cashless transactions and foster financial inclusion. In regions like Europe and Asia-Pacific, where contactless payments are becoming the norm, regulatory bodies are mandating stronger security protocols and fraud prevention measures to build consumer trust. Meanwhile, consumers are increasingly seeking faster, more secure, and convenient payment methods. The desire for seamless user experiences is pushing financial service providers and merchants to enhance their contactless payment systems, offering added functionalities such as loyalty programs and digital receipts. These developments underscore the growing alignment of regulatory frameworks and consumer expectations in promoting the uptake of contactless payments.

What Factors Are Driving The Growth Of The Contactless Payments Market?

The growth in the contactless payments market is driven by several factors, including rising consumer demand for convenience, advancements in payment technology, and supportive regulatory environments. A key driver is the increasing penetration of smartphones and wearable devices, which facilitate easy access to contactless payment methods. The COVID-19 pandemic significantly accelerated the adoption of contactless payments as businesses and consumers sought safer, touch-free payment options. Furthermore, the integration of contactless payment systems into public transportation networks, retail, and hospitality sectors is fostering greater usage. Continuous innovation in payment solutions, such as mobile wallets and biometric cards, is also driving market expansion. Additionally, financial inclusion initiatives by governments and financial institutions, particularly in developing regions, are making digital and contactless payments more accessible to the unbanked population, further fueling market growth.

Select Competitors (Total 72 Featured) -

• Absolutely No Nonsense Admin Limited
• Accomplish Financial Limited
• Approvely, Inc.
• Arround Inc.
• Axepta S.p.A.
• Banco San Juan Internacional, Inc.
• Barclays plc.
• Brush Industries, Inc.
• CELLI S.p.A.
• Dream Payments Corp.

Please note: Reports are sold as single-site single-user licenses. Electronic versions require 24-48 hours as each copy is customized to the client with digital controls and custom watermarks. The Publisher uses digital controls protecting against copying and printing is restricted to one full copy to be used at the same location.

The latest version of Adobe Acrobat Reader is required to view the report. Upon ordering an electronic version, the Publisher will provide a link to download the purchased report.

Prior to fulfillment of an order, the client will be required to sign a document detailing the purchase terms for a publication from this publisher.