IMARC Group’s latest report, titled “Contactless Payment Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2021-2026,” finds that the global contactless payment market size reached US$ 10.50 Billion in 2020. Contactless payment refers to a secure method of paying for goods and services. The process makes use of smartphones, smart cards, wearables, and key fobs that can instantly complete a transaction with a wave or a tap. It consists of chips or antennas that are embedded in the device to facilitate contactless transactions at a point of sale (POS) terminal. Contactless payment is considered an efficient payment solution as it provides increased speed of transaction and enhanced security.
We are regularly tracking the direct effect of COVID-19 on the market, along with the indirect influence of associated industries. These observations will be integrated into the report.
Global Contactless Payment Market Trends:
The global contactless payment market is primarily driven by the growing penetration of the internet, which is facilitating the adoption of digital payment platforms. This is further supported by the increasing demand for seamless payment processes in day-to-day life. Contactless payment offers various benefits such as ease of use, low deployment cost, and mobility. It helps reduce the time spent on queuing at various POS terminals and faster checkouts at banks. Besides this, contactless payment is gaining traction across merchant outlets selling low-value products, such as drinks and snacks. They also find applications in ticket and toll booths, fuel stations, and vending machines. Governments across the world are also providing incentives for developing smart solutions and networking infrastructures. Furthermore, the rising awareness regarding the various payment modes, shifting preference towards contactless technologies, and the need for safe and secure transactions are propelling the growth of the market. On account of these factors, the market value is expected to reach US$ 20.7 Billion by 2026, exhibiting a CAGR of around 18% during the forecast period (2021-2026).
- Based on the technology, the market has been categorized into near field communication (NFC), radio frequency identification (RFID), infrared (IR), and others.
- On the basis of the device, the market has been classified into smartphones and wearables, point-of-sale terminals, and smart cards. Smartphones currently hold the majority of the overall market share.
- The market has been divided based on the solution into payment terminal solutions, transaction management, security and fraud management, hosted point-of-sales, and payment analytics. Amongst these, point-of-sale is the largest solution segment.
- Based on the application, the market has been segmented into BFSI, retail, transportation, healthcare, and others. At present, retail accounts for the largest market share.
- Region-wise, Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others) holds the leading position in the market. Other major regions are North America (the United States and Canada), Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others), Latin America (Brazil, Mexico, and others), and Middle East and Africa.
- The competitive landscape of the market has been examined, with some of the key players being Giesecke & Devrient GmbH, Heartland Payment Systems (Global Payments Inc.), IDEMIA (Advent International), Ingenico Group (Worldline S.A.), On Track Innovations Ltd., Pax Technology, Setomatic Systems, Thales Group, Valitor, Verifone Systems Inc. (Francisco Partners), and Visa Inc.
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