Rising Demand for Contactless Payment Owing to Increasing E-Commerce Activities and Advanced Technologies

Published: May 2023

The global contactless payment market is anticipated to grow at a considerable CAGR of 20.1% during the forecast period (2023-2030). The market’s growth is mainly driven by the growth in e-commerce activities that prompt consumers to use online contactless payment options. According to the UNCTAD report published in 2021, global e-commerce sales reached $26.7 trillion in 2019. Moreover, according to the US Census Bureau of the Department of Commerce report for 2022, the projection for fourth-quarter 2022 retail e-commerce sales in the US, adjusted for seasonal volatility but not for pricing increases, was $262.0 billion, a 5.7% increase from 2021 (fourth quarter).

The contactless payment market is also growing owing to its use in various end-user industries such as BFSI, retail, and others. Contactless payment reduces transaction times, enhances the customer experience, and offers more convenience to the customers. Hence,the use of this payment method is increasingly in demand in these industries.

Browse the full report description of “Contactless Payment Market Size, Share, and Trends Analysis Report by Payment Type (Smartphone Based and Card Based), and by Application (Retail, Healthcare, Transportation, and Hospitality), and Forecast Period (2023–2030)” at https://www.omrglobal.com/industry-reports/contactless-payment-market

Smartphone penetration across the globe is further accelerating the market’s growth. For instance, according to GSMA statistics, as of Q1 2023, mobile connections, including cellular and IoT, reached 11.2 billion worldwide. Besides, wearable payment gadgets are gaining popularity across the globe as people rapidly and readily incorporate this relatively new payment method into their daily lives. A wearable gadget, such as a ring, bracelet, or wristwatch, may include near-field communication (NFC) capabilities. There are two types of wearables: passive and active. The transaction can be approved using a passive wearable, such as a ring, by entering a PIN code on the payment terminal (similar to a plastic card). With active wearables, such as a smartwatch, the PIN can be input directly on the wearable, and payment is completed with a single tap.

Another factor that supportsmarket growth is the integration of advanced technologies. For instance, in September 2022, ProvidusBank, with Thales Group, Interswitch, and Mastercard, announced a new Tap-to-Pay service in Nigeria. The service allows cardholders to make secure,fast, and convenient in-store payments by tapping their NFC-enabled smart device at any contactless-enabled payment terminal.

Market Coverage

The Market Number Available for – 2022-2030

o Base year- 2022

o Forecast period- 2023-2030

Segment Covered- 

o By Payment Type

o By Application

Regions Covered-

o North America

o Europe

o Asia-Pacific

o Rest of the World

Competitive Landscape-Ingenico, Mastercard, PayCore, Paypal Holdings Inc., PayU, and others.

Key questions addressed in the report

What is the market growth rate?

Which segment and region dominated the market in the base year?

Which segment and region will project the fastest growth in the market?

How has COVID-19 impacted the market?

o Deviation from the pre-COVID-19 forecast

o Most affected regions and segments

Who is the leader in the market?

How are players addressing challenges to sustain growth?

Where is the investment opportunity?

Global Contactless Payment Market Report Segment

By ProductType

  • Smartphone Based
  • Card Based

By Application

  • Retail
  • Healthcare
  • Transportation
  • Hospitality

Global Contactless Payment Market Report Segment by Region

North America

US

Canada

Europe

UK

Germany

Italy

Spain

France

Rest of Europe 

Asia-Pacific

China

India

Japan

South Korea

Rest of Asia-Pacific 

Rest of the World

Latin America 

Middle East and Africa


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