PUBLISHER: IndustryARC | PRODUCT CODE: 1075703
PUBLISHER: IndustryARC | PRODUCT CODE: 1075703
Contactless Payment Market size is expected to reach $20.9 billion by 2027 at a CAGR of 14.2% during the forecast period 2022-2027. With the increasing integration of contactless payment technologies in mobile handsets and smartphones, the demand for contactless payment solutions has grown tremendously across all the countries. In addition, rising awareness of plastic money and smart cards among the buyers, increasing frequency of purchases, and the need for fast transaction time without any inconvenience of standing in long queues is also accelerating the market in the forecast period. The rising hardware encryption on NFC Chips and the integration of contactless payment solutions on EPOS terminal as well as with Subscriber Identity Module (SIM) Cards are set to propel the Contactless payment industry. Moreover, an advantage offered by contactless transactions for customers that can instantly complete transactions with the tap of a card and the increase in speed of transactions is making contactless payments even more efficient in the forecast period 2022-2027.
The report: "Contactless Payment Industry Outlook - Forecast (2022-2027)", by IndustryARC covers an in-depth analysis of the following segments of the Contactless Payment market report.
By Technology: NFC (Near Field Communication) Technology, RFID (Radio Frequency Identification) Technology, IR (Infrared) Technology, Others.
By Operational Frequency: Low Frequency, High Frequency, Ultra High Frequency.
By Devices: Plastic Cards, Stickers, Key Fobs, Watch and Wrist Band, Car Tag, Mobile Phones, Others.
By Transaction Models: Speedpass, E-Z Pass, Track 1 and Track 2 Data, EMV Card, Offline Stored Value Card.
By Industries: Government, BFSI, Telecommunication & IT, Transportation & Logistics, Energy & Utilities, Healthcare, Retail, Hospitality, Others.
By Geography: North America (U.S, Canada, Mexico), South America(Brazil, Argentina and others), Europe(Germany, UK, France, Italy, Spain, Russia and Others), APAC(China, Japan India, SK, Aus and Others), and RoW (Middle east and Africa).
Contactless payment in retail sector allows issuers to penetrate the cash payment market, with increased transaction volume, improve customer retention and loyalty.
Outbreak of corona virus has made Contactless payments a more preferred method of payment as it requires less physical interaction.
North America dominated the market by a market share of more than 35% in 2020, owing to the high penetration of smartphones and advancements in smart chip technology and integration of mobile app with banks.
Contactless Payment top 10 companies Google, Amazon, Apple Inc., Gemalto N.V, Giesecke & Devrient Gmbh, Ingenico Group, Verifone Systems, Inc., Wirecard AG, Heartland Payment Systems, Inc., Inside Secure among others.
Contactless Payment Market Segment Analysis - By Device type
Mobile Devices are growing at a highest CAGR of 16.2% in the forecast period, owing to the growing usage of smartphones all over the globe. In addition, personalized experiences, rising penetration of internet, higher speed of contactless transactions will propel the market growth. Moreover several companies are planning to launch contactless payment solutions for smartphones. In 2019, MasterCard has announced to launch solution for smartphones to become contactless acceptance devices. Similarly, in 2019, State bank of India (SBI) has launched a contactless mobile payment facility. In addition to this contactless payment services such as Google pay, Samsung pay and so on have been updating their services from time to time. Hence these advantages are analyzed to drive the market for Mobile devices in the forecast period 2022-2027.
Contactless Payment Market Segment Analysis - By Industry Vertical
The retail sector is growing at a CAGR of 19.3% in the forecast period. Contactless payment in retail sector allows issuers to penetrate the cash payment market, enjoy increased transaction volume, improved customer retention and loyalty. Moreover with the impact of covid-19 consumers and retailers enjoy the convenience of hands-free payment. In addition, this type of payments are particularly attractive to retail segments where speed and convenience of payments are essential. Furthermore, Governments of several countries have taken several initiatives to increase the limit of contactless payment apps. In 2020, Barclaycard to enable UK retailers to accept new £45 Contactless Limit. Similarly, several other platforms have been increasing the limit as to help prevent the spread of Coronavirus. Hence these advantages are analyzed to drive the market in the forecast period 2022-2027.
Contactless Payment Market Segment Analysis - By Geography
North America and Europe dominated the market by a market share of more than 35% and 30% share respectively in 2020, owing to the high penetration of smartphones and advancements in smart chip technology. In addition to this increasing adoption rate, regulatory initiatives such as Euro Mastercard Visa (EMV), and the adoption of Near Field communication technology is enhancing the market growth in this region. According to the report given by Master card in more than a dozen European countries, contactless credit card payments account for nearly 50% of transactions. Similarly, According to UK Finance, there were 1.6 billion debit and credit card transactions in the UK in 2019. Nearly a third of all card transactions in the UK were made using contactless cards. Moreover, banks are integrating with mobile payment apps in the European region, owing to the increasing adoption of smartphones. Hence these benefits and adoptions are analyzed to drive the market in the forecast period 2022-2027.
Contactless Payment Market Drivers
The outbreak of Corona Virus Helps in assisting the market growth
With the outbreak of Coronavirus, Contactless payments have become a more preferred method of payment as it requires less physical interaction. Digital wallets or other smartphone-based payment interfaces have emerged as potential solutions for payments to prevent virus spread. Moreover, current developments in digital payments have encouraged the use of contactless payments amid this pandemic. For instance, in April 2020, Neobank Upgrade (U.S.) launched the new contactless credit card available in digital form that supports Google Pay and Apple Pay mobile wallets. In addition bank authorities and card networks in U.S., Germany, Netherlands, Austria, and Hungary, among other countries have set higher transaction limits than usual for contactless payment methods. In 2020, U.K. Finance Limited has increased the spending limit for contactless card payments from 30 Euros to 45 Euros. So therefore the wide spread of Corona virus will accelerate the growth of the market in the forecast period 2022-2027.
Rising Penetration of Internet
The growth of the contactless payment terminals market will be driven by internet penetration as a strong internet connection is the backbone of this payment method. The number of internet users in 2019 reached more than 4.57 billion, depicting a 7% year-on-year growth rate. Moreover, with increasing digitization and smart cities, people will be more inclined towards contactless payment methods as they offer convenience and quicker checkout time. In addition, smartphone manufacturers are developing contactless payment methods such as Samsung Pay, Apple pay and so on. Moreover, with the increasing penetration level of the internet, people are adapting themselves to new technology and they are becoming more technology-oriented. This boosts the contactless payment market. Applications like Google Pay, Apple Pay, Samsung Pay & many more are driving the market by providing easy-to-use, one-tap money transfer, rewards and lot of other perks. Hence these benefits are analysed to drive the market in the forecast period 2022-2027.
Contactless Payment Market Challenges
Lack of Awareness and Trust related to contactless payment
Concerns regarding theft and security have created a lack of trust among the public. The absence of pin facility during the transaction further proliferates this concern. Moreover, contactless cards are accepted at fewer locations as compared to magnetic stripe cards. This has hampered the contactless payments market growth to a prominent extent. Risk of spyware, malware and virus attacks due to usage of numerous systems is limiting the adoption of contactless payment globally. Low awareness of this mode of payment, especially across Asia Pacific and Latin America, is further restricting the contactless payment market growth.
Contactless Payment Market Landscape
Technology launches, acquisitions, Partnerships and R&D activities are key strategies adopted by players in the Contactless Payment market. In 2020, the market of Contactless Payment industry outlook has been fragmented by several companies. Contactless Payment top 10 companies encompass Google, Amazon, Apple Inc., Gemalto N.V, Giesecke & Devrient Gmbh, Ingenico Group, Verifone Systems, Inc., Wirecard AG, Heartland Payment Systems, Inc., Inside Secure among others.
In 2020, CPI Card Group Inc., a payment technology company and leading provider of credit, debit and prepaid solutions, highlighted its dual interface metal card solution, which uniquely captures two major trends in consumer payments (metal and contactless.)
In 2019, Wirecard and Sisal Group signed agreement to collaborate in the field of contactless payment solutions for the brand SisalPay