Contactless payment market is anticipated to grow at a considerable CAGR of 20.1% during the forecast period (2023-2030). The market is expected to increase due to the increasing usage of innovative payment technologies such as host-based card emulation (HCE) and near field communication (NFC) for contactless payments. Additionally, a huge surge in digitization and e-commerce platforms throughout the globe is propelling the contactless payment market forward. According to Thales Group, a company that designs and develops electrical systems, there will be more than 2.6 billion contactless payment cards in circulation by 2023, owing to the technology's quick acceptance in areas such as South Asia, the US, and Brazil.

Segmental Outlook 

The global contactless payment market is segmented by payment type and application. Based on payment type, the market is sub-segmented into smartphone based and card based. Based on application, the market is sub-segmented into retail, healthcare, transportation, and hospitality. Among payment types, the smartphone based segment is expected to hold the largest market share. As the customer preference for smartphone-based payment methods such as contactless payment methods at POS systems grows, card and financial service providers are either delivering their own solutions on smartphones or through third-party vendors.

The Retail Sub-Segment Holds a Prominent Share in the Global Contactless Payment Market

Based on application, the market is sub-segmented into retail, healthcare, transportation, and hospitality. Among these, the retail segment is expected to hold a significant share of the market. Owing to the increasing use of various contactless payment terminals in the retail industry and the benefits that come with offering cashless payment terminals, such as increased customer satisfaction and store sales promotion, the retail segment is expected to hold a significant market share. Contactless payment methods enable retailers to create faster and smoother checkout experiences, increasing consumer loyalty.

Regional Outlook

The global contactless payment market is segmented based on geography, including North America (the US and Canada), Europe (Italy, Spain, Germany, France, and others), Asia-Pacific (India, China, Japan, South Korea, and others), and the rest of the world (the Middle East and Africa and Latin America). The market can be analyzed for a particular region or country level as per the requirement. Among the regions, the Asia-Pacific region is expected to generate the highest market share, followed by the European market. The growth of the market in Europe is attributed to increased number of contactless payments. For instance, according to a report published by the Swedish Trade Federation in 2021, in Sweden, contactless payments accounted for 85% of all in-store transactions in 2020.

Global Contactless Payment Market Growth, by Region (2023-2030)

The Asia-Pacific Region is Expected to Dominate the Global Contactless Payment Market

Owing to its rising population and emerging nations, the Asia-Pacific region dominates the market. Asia-Pacific has a population of more than 4.9 billion people, according to Worldometer figures for 2023. The region's high population density means that it has a large number of consumers. The region also has a large number of smartphone and internet users who prefer online shopping, which increases the demand for contactless payments. Additionally, the existence and concentration of key mobile wallet providers such as Alipay, Paytm, Phone Pe, Google Pay, and other digital banking service providers give a great deal of potential for the Asia Pacific contactless payment industry. For instance, according to the PBOC Digital Currency Research Institute, about 140 million Chinese people had established a digital yuan account as of October 2021, with total transactions surpassing 62 billion yuan ($9.7 billion) since its debut. Furthermore, excellent economic circumstances and the proliferation of mobile wallets in different retail applications generate more expansion prospects, which enhance Asia-Pacific market growth.

Market Players Outlook

The major companies serving the global contactless payment market include Apple Inc., CPI Card Group, Gemalto, Giesecke+Devrient GmbH, Infineon, and others. These companies are considerably contributing to the market’s growth through the adoption of various strategies, including mergers and acquisitions, partnerships, collaborations, investments, and new contactless payment mode launches to stay competitive in the market. For instance, in January 2022, Rev USA, Inc., a fintech business, launched of X World Wallet, an app-based wallet. The X World Wallet can be quickly loaded into the user's current bank accounts and linked to digital or real Visa cards that can be added to Apple, Google, and Samsung Pay wallets for tap-and-go ease. Additionally, in September 2021, PayPal, Inc. launched a new all-in-one software called the PayPal app to serve its users with improved financial services. To improve the client experience, the new PayPal app provides a single dashboard for all of the customer's accounts, a wallet tab for handling payment instruments, and other financial services.

The Report Covers-

• Market value data analysis for 2023 and forecast to 2030.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global contactless payment market. Based on the availability of data, information related to new product launches and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market entry and market expansion strategies.
• Competitive strategies by identifying ‘who stands where’ in the market.