PUBLISHER: The Business Research Company | PRODUCT CODE: 1852354
PUBLISHER: The Business Research Company | PRODUCT CODE: 1852354
A contactless payment reader is an electronic device that enables customers to complete transactions by tapping or waving a contactless card, smartphone, or wearable device near the reader, using technologies such as near field communication (NFC) or radio frequency identification (RFID). It facilitates fast, secure, and convenient payments without physical contact with the terminal, reducing checkout time and improving hygiene.
The main device types of contactless payment readers include point-of-sale (POS) terminals, mobile payment readers, self-service kiosks, vending machines, and payment gateways. A POS terminal combines hardware and software to process transactions, accept payments, and support retail operations. Contactless readers support a wide range of payment methods, such as credit cards, debit cards, mobile wallets, wearable devices, and cryptocurrency transactions. They utilize technologies such as NFC, RFID, magnetic stripe (Magstripe), Europay, Mastercard, and Visa (EMV), as well as quick response (QR) code scanning. These readers are used by organizations of all sizes, including small enterprises, medium-sized businesses, large corporations, startups, and franchise chains. They serve a wide range of end-user industries such as retail, hospitality, transportation and logistics, healthcare, and entertainment and leisure.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the financial sector, particularly in investment strategies and risk management. Heightened tariffs have fueled market volatility, prompting cautious behavior among institutional investors and increasing demand for hedging instruments. Banks and asset managers are facing higher costs associated with cross-border transactions, as tariffs disrupt global supply chains and dampen corporate earnings, key drivers of equity market performance. Insurance companies, meanwhile, are grappling with increased claims risks tied to supply chain disruptions and trade-related business losses. Additionally, reduced consumer spending and weakened export demand are constraining credit growth and investment appetite. The sector must now prioritize diversification, digital transformation, and robust scenario planning to navigate the heightened economic uncertainty and protect profitability.
The contactless payment reader market research report is one of a series of new reports from The Business Research Company that provides contactless payment reader market statistics, including contactless payment reader industry global market size, regional shares, competitors with a contactless payment reader market share, detailed contactless payment reader market segments, market trends and opportunities, and any further data you may need to thrive in the contactless payment reader industry. This contactless payment reader market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The contactless payment reader market size has grown rapidly in recent years. It will grow from $9.66 billion in 2024 to $11.39 billion in 2025 at a compound annual growth rate (CAGR) of 18.0%. The growth in the historic period can be attributed to increasing government support for digital payment ecosystems, rising awareness of cybersecurity and secure transaction methods, expansion of the e-commerce and online retail sector, growing implementation of self-service kiosks across industries, and the rising number of cashless initiatives in emerging economies.
The contactless payment reader market size is expected to see rapid growth in the next few years. It will grow to $21.79 billion in 2029 at a compound annual growth rate (CAGR) of 17.6%. The growth in the forecast period can be attributed to increasing consumer preference for quick and seamless transactions, rising demand for hygienic and touch-free payment solutions, growing adoption of mobile wallets and digital banking, increasing smartphone penetration, and the growing popularity of wearable payment devices. Major trends in the forecast period include advancements in near field communication (NFC) technology, integration of radio frequency identification (RFID) in payment terminals, technological developments in biometric authentication for secure payments, advancements in Bluetooth low energy (BLE) technology for mobile payments, and the integration of the internet of things (IoT) in smart kiosks and vending machines.
The rising adoption of digital payments is expected to drive the growth of the contactless payment reader market in the coming years. Digital payments involve the electronic transfer of money between parties through digital platforms without relying on physical cash. Their usage is increasing due to the growing penetration of smartphones and the internet, making electronic transactions more accessible and convenient for consumers. Contactless payment readers support this trend by enabling fast and secure transaction processing, making them highly suitable for retailers and small businesses. They reduce manual handling of payments through tap-and-go options, improving checkout speed and customer convenience. For example, in January 2024, the European Central Bank, a Germany-based central banking institution, reported that the number of contactless card payments rose by 24.3% to 20.9 billion in 2023 compared to 2022. This shows that the growing adoption of digital payments is boosting the demand for contactless payment readers.
Companies in the contactless payment reader market are increasingly introducing innovative solutions such as mobile payment readers to improve transaction speed and customer convenience. Mobile payment readers are portable devices that allow merchants to accept payments through near field communication (NFC) or Bluetooth, enabling secure transactions anywhere and making them ideal for mobile sales and small businesses. For instance, in April 2024, NMI, a US-based credit card service company, launched the ID TECH VP335, a mobile payment card reader. This device connects directly with smartphones and tablets to provide quick, seamless, and cost-effective mobile payment acceptance, supporting both EMV contact and contactless payments. It requires no pairing for its optional wired connection, processes transactions within seconds, and integrates with NMI's mobile payment app and SDKs. The solution is designed to help small and medium-sized businesses easily accept card payments, particularly those previously limited to cash transactions.
In March 2022, Infibeam Avenues Ltd., an India-based financial technology company, acquired Uvik Technologies Pvt. Ltd. for ₹75 crores ($9 million). This acquisition aimed to strengthen Infibeam's digital payments portfolio by incorporating Uvik's contactless payment technology to provide merchants with more secure and convenient payment solutions. Uvik Technologies Pvt. Ltd. is an India-based financial technology company specializing in contactless payment readers.
Major players in the contactless payment reader market are PayPal Holdings Inc., Thales Group S.A., Square Inc., NXP Semiconductors N.V., Cubic Corporation, PAX Global Technology Limited, Ingenico Group S.A., SumUp Payments Limited, VeriFone Inc., PayCore Payment Technologies, Castles Technology Co. Ltd., Wirecard AG, Identiv Inc., Clover Network Inc., On Track Innovations Ltd., ID TECH, Bitel Co. Ltd., Setomatic Systems Inc., Shenzhen Zhongan Chuangxin Technology Co. Ltd., Mobeewave Inc.
North America was the largest region in the contactless payment reader market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in contactless payment reader report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the contactless payment reader market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The contactless payment reader market consists of revenues earned by entities by providing services such as tap-to-pay transactions, multi-currency acceptance, digital receipts, and real-time transaction tracking. The market value includes the value of related goods sold by the service provider or included within the service offering. The contactless payment reader market also includes sales of handheld contactless card readers, wearable payment devices, contactless payment modules, portable Bluetooth readers, and tap-to-phone solutions. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Contactless Payment Reader Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on contactless payment reader market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for contactless payment reader ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The contactless payment reader market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.