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Contactless Payment Market Research Report – Segmentation By Device (Smartphones And Accessories, Point Of Sale Terminals And Smart Cards), Solution (Payment Terminal Solution, Transaction Management, Fraud Management, Hosted POS), Application (Retail, Transportation, Healthcare, Hospitality, And Government), Region, And Segment Forecasts, 2022 to 2027

Published: January, 2022
ID: 8287
Pages: 170

Contactless Payment Market Size and Growth Analysis (2022 - 2027)

The global contactless payments market size was estimated at US$ 20.4 million in 2021 and is expected to reach US$ 54.3 billion by 2027, with an annual growth rate of over 21% during the period of 2022 to 2027.

Contactless payment is the way of secure payment transactions that are made using technologies such as Bluetooth, infrared (IR), radio frequency identification (RFID) and near field communication (NFC). Contactless payment takes almost a tenth of the time that traditional electronic transactions take, making it easier for customers. The need to make payment safer and the convenience of paying quickly without cash or identity details make contactless payment a popular game changer. Initially, contactless cards were only used in the form of travel tickets; It has evolved and helps consumers make payments for almost everything. A point to be focused is that these payments will have an upper limit and restricted number of transactions per day.

This allows the transaction to take place without any physical connection between the consumer's payment device and the point of sale terminal. Mobile phone payments, key chains, stickers and cards are some of the devices used to make contactless payments. Contactless payments offer efficient and fast payment solutions via an EMV contactless card, an NFC mobile phone or a standard contactless travel card.

Near Field Communication (NFC) technology allows contactless payments with the use of standards-based wireless communication technology for the exchange of information between a device and a point of sale terminal, providing a better and trouble-free customer experience. In addition, NFC is used in the mobile wallet, which is handy for secure money transfers and ticket transactions.

Market Growth and Trends

The global contactless payment market is primarily driven by the rising penetration of the internet, as a robust Internet connection is vital for this kind of payment. The number of Internet users in 2018 has touched almost 4 billion, with a year-on-year growth rate of approximately 7%. In addition, with the rise of digitalization and smart cities, people will be more inclined to contactless payment methods, because they offer convenience and faster payment terms.

Also, smartphone manufacturers are launching contactless payment methods like Samsung Pay. All of this will help develop the market for contactless payment terminals. Applications like Google Pay, Apple Pay, Samsung Pay and many others stimulate the market by offering money transfers, rewards and many other easy-to-use benefits.

North America recorded the highest Internet penetration rate, trailed by Europe, Australia and Latin America. The average Internet penetration rate across the globe is 56.80%. With the increasing level of Internet penetration, people are adapting to new technologies and becoming more and more technology-oriented. This stimulates the contactless payment market.

Market Drivers and Restraints

Several factors are contributing to the growth of contactless payment systems, such as advancements in contactless payment technology, a greater awareness of plastic money among buyers, a higher frequency of purchases, and a need for fast transaction time with no hassle of stay in long queues. Contactless payment continues to evolve, making it a useful interface between consumers and retailers, the advertiser and merchants. Increased penetration of the Internet also stimulates the market for contactless payment business in the coming years.

The initial setup cost, the government limitation on the number of contactless payment transactions per day, and the limitation on the amount that can be done per day are some deficiencies of contactless payment that hinder the growth of the contactless payment market. The risk of spyware, malware and virus attacks from the use of multiple systems limits the adoption of contactless payments worldwide. The poor knowledge of this payment method, particularly in Asia-Pacific and Latin America, further restricts growth in the global contactless payments market.

CONTACTLESS PAYMENT MARKET REPORT COVERAGE:

REPORT METRIC

DETAILS

Market Size Available

2021 – 2027

Base Year

2021

Forecast Period

2022 - 2027

CAGR

21%

Segments Covered

By Device, Solution, Application and Region

Various Analyses Covered

Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities

Regions Covered

North America, Europe, APAC, Latin America, Middle East & Africa

Market Leaders Profiled

Gemalto (Netherlands), Infineon (Germany), Ingenico (France), Wirecard (Germany), Verifone (United States), Giesecke + Devrient (Germany), IDEMIA (France), On Track Innovations (Israel), Identiv (United States), CPI Card Group (United States), Bitel (South Korea), Setomatic Systems (United States), Valitor (Iceland), PAX Global Technology (China), MYPINPAD ( United Kingdom), Mobeewave (United Kingdom), Alcineo (South Africa), Castles (Taiwan), SumUp (United Kingdom), PayCore (Istanbul) and Others.

 

Market Segmentation

This global market research report is segmented and sub-segmented into the following categories:

Contactless Payment Market - By Device:

  • Smartphones And Accessories
  • Point Of Sale Terminals
  • Smart Cards

Several financial service providers offer a more convenient payment mechanism and transaction volumes through secure transaction devices. The use of smartphones has increased considerably in daily activities. For example, people now use smartphones to make payments in stores. Also, innovations in wearable devices such as payment bands and rings are expected to stimulate market demand during the forecast period.

Contactless Payment Market - By Solution:

  • Payment Terminal Solution
  • Transaction Management
  • Fraud Management
  • Hosted POS

The payment terminal solution accounted for a significant share in 2016 and is expected to continue to grow over the forecast period. Transactions made through contactless payments are susceptible to fraud because people have become more aware of the use of these systems. Several contactless technology providers like Gemalto and Visa Inc., continually improve their security protocols to improve security management in the contactless payment market. As such, the fraud and security management segment is expected to grow over the outlook period.

Contactless Payment Market - By Application:

  • Retail
  • Transportation
  • Healthcare
  • Hospitality
  • Government

The retail and consumer goods sector offers quick transactions to speed up the payment process, which is likely to further stimulate demand in these segments. In addition, these payments also find uses in service companies, such as cinemas, service stations, restaurants, and convenience stores, which stimulate the demand for contactless payments in the retail industry.

Contactless Payment Market - By Region:

  1. North America
  2. Europe
  3. Middle East & Africa
  4. Latin America
  5. Asia Pacific

North America is anticipated to dominate the market over the prediction period due to various advances in smart chip technology. The strong penetration of smartphones should stimulate demand in Europe. The growth in this area is mainly credited to the surge in the adoption rate, regulatory policies like Euro MasterCard Visa (EMV), the adoption of NFC technology and the strong standards related to smart cards.

Key Players in the Market

The main providers in the global contactless payments market are:

  1. Gemalto (Netherlands)
  2. Infineon (Germany)
  3. Ingenico (France)
  4. Wirecard (Germany)
  5. Verifone (United States)
  6. Giesecke + Devrient (Germany)
  7. IDEMIA (France)
  8. On Track Innovations (Israel)
  9. Identiv (United States)
  10. CPI Card Group (United States)
  11. Bitel (South Korea)
  12. Setomatic Systems (United States)
  13. Valitor (Iceland)
  14. PAX Global Technology (China)
  15. MYPINPAD ( United Kingdom)
  16. Mobeewave (United Kingdom)
  17. Alcineo (South Africa)
  18. Castles (Taiwan)
  19. SumUp (United Kingdom)
  20. PayCore (Istanbul)

Recent Developments

  • In January 2020, the CPI Card Group introduced dual-interface metal cards that uniquely combine high-quality design and contactless capabilities.
  • In October 2019, Mobeewave and IDEMIA widened their partnership to implement a secure mobile POS and the validation of tariffs in Australia.
  • In August 2019, Wirecard and Sisal Group signed a deal in the field of contactless payment solutions.
  • April 2019: OTI, a renowned near field communication (NFC) and cashless payment solutions provider in the world, declared the receipt of a colossal order for rail ticketing systems with around 6,000 advanced payment systems.

1. Introduction                                 

                1.1 Market Definition                    

                1.2 Scope of the report                

                1.3 Study Assumptions                 

                1.4 Base Currency, Base Year and Forecast Periods

2. Research Methodology                                           

                2.1 Analysis Design                         

                2.2 Research Phases                      

                                2.2.1 Secondary Research           

                                2.2.2 Primary Research 

                                2.2.3 Data Modelling      

                                2.2.4 Expert Validation  

                2.3 Study Timeline                          

3. Report Overview                                        

                3.1 Executive Summary                

                3.2 Key Inferencees                       

4. Market Dynamics                                       

                4.1 Impact Analysis                         

                                4.1.1 Drivers      

                                4.1.2 Restaints  

                                4.1.3 Opportunities        

                4.2 Regulatory Environment                       

                4.3 Technology Timeline & Recent Trends                            

5. Competitor Benchmarking Analysis                                    

                5.1 Key Player Benchmarking                     

                                5.1.1 Market share analysis        

                                5.1.2 Products/Service  

                                5.1.3 Regional Presence               

                5.2 Mergers & Acquistion Landscape                      

                5.3 Joint Ventures & Collaborations                        

6. Market Segmentation                                              

                6.1 Contactless Payment Market, By Device                       

                                6.1.1 Smartphones And Accessories       

                                6.1.2 Point Of Sale Terminals And Smart Cards   

                                6.1.3 Market Size Estimations & Forecasts (2022 - 2027)

                                6.1.4 Y-o-Y Growth Rate Analysis             

                                6.1.5 Market Attractiveness Index          

                6.2 Contactless Payment Market, By Application

                                6.2.1 Retail         

                                6.2.2 Transportation      

                                6.2.3 Healthcare              

                                6.2.4 Hospitality               

                                6.2.5 Government          

                                6.2.6 Market Size Estimations & Forecasts (2022 - 2027)

                                6.2.7 Y-o-Y Growth Rate Analysis             

                                6.2.8 Market Attractiveness Index          

                6.3 Contactless Payment Market, By Solution                    

                                6.3.1 Payment Terminal Solution              

                                6.3.2 Transaction Management

                                6.3.3 Fraud Management            

                                6.3.4 Hosted POS            

                                6.3.5 Market Size Estimations & Forecasts (2022 - 2027)

                                6.3.6 Y-o-Y Growth Rate Analysis             

                                6.3.7 Market Attractiveness Index          

7. Geographical Landscape                                         

                7.1 Global Identity Governance and Administration Market, by Region

                7.2 North America - Market Analysis (2022 - 2027)

                                7.2.1 By Country              

                                                7.2.1.1 USA

                                                7.2.1.2 Canada

                                7.2.2 By Device 

                                7.2.3 By Application        

                                7.2.4 By Solution              

                7.3 Europe                         

                                7.3.1 By Country              

                                                7.3.1.1 UK

                                                7.3.1.2 France

                                                7.3.1.3 Germany

                                                7.3.1.4 Spain

                                                7.3.1.5 Italy

                                                7.3.1.6 Rest of Europe

                                7.3.2 By Device 

                                7.3.3 By Application        

                                7.3.4 By Solution              

                7.4 Asia Pacific                  

                                7.4.1 By Country              

                                                7.4.1.1 China

                                                7.4.1.2 India

                                                7.4.1.3 Japan

                                                7.4.1.4 South Korea

                                                7.4.1.5 South East Asia

                                                7.4.1.6 Australia & NZ

                                                7.4.1.7 Rest of Asia-Pacific

                                7.4.2 By Device 

                                7.4.3 By Application        

                                7.4.4 By Solution              

                7.5 Latin America                             

                                7.5.1 By Country              

                                                7.5.1.1 Brazil

                                                7.5.1.2 Argentina

                                                7.5.1.3 Mexico

                                                7.5.1.4 Rest of Latin America

                                7.5.2 By Device 

                                7.5.3 By Application        

                                7.5.4 By Solution              

                7.6 Middle East and Africa                           

                                7.6.1 By Country              

                                                7.6.1.1 Middle East

                                                7.6.1.2 Africa

                                7.6.2 By Device 

                                7.6.3 By Application        

                                7.6.4 By Solution              

8. Key Player Analysis                                    

                8.1 Gemalto                      

                                8.1.1 Business Description           

                                8.1.2 Products/Service  

                                8.1.3 Financials 

                                8.1.4 SWOT Analysis       

                                8.1.5 Recent Developments       

                                8.1.6 Analyst Overview 

                8.2 Infineon                       

                8.3 Ingenico                       

                8.4 Verifone                      

                8.5 Wirecard                      

                8.6 IDEMIA                         

                8.7 On Track Innovations                             

                8.8 Identiv                          

                8.9 CPI Card Group                         

                8.10 Setomatic Systems                               

9. Market Outlook & Investment Opportunities                                

Appendix                                           

                List of Tables                     

                List of Figures                   

  1. Global Contactless Payment Market By Region, From 2022 - 2027 ( USD Billion )
  2. Global Contactless Payment Market By Device, From 2022 - 2027 ( USD Billion )
  3. Global Smartphones And Accessories Market By Region, From 2022 - 2027 ( USD Billion )
  4. Global Point Of Sale Terminals And Smart Cards Market By Region, From 2022 - 2027 ( USD Billion )
  5. Global Contactless Payment Market By Application, From 2022 - 2027 ( USD Billion )
  6. Global Retail Market By Region, From 2022 - 2027 ( USD Billion )
  7. Global Transportation Market By Region, From 2022 - 2027 ( USD Billion )
  8. Global Healthcare Market By Region, From 2022 - 2027 ( USD Billion )
  9. Global Hospitality Market By Region, From 2022 - 2027 ( USD Billion )
  10. Global Government Market By Region, From 2022 - 2027 ( USD Billion )
  11. Global Contactless Payment Market By Solution, From 2022 - 2027 ( USD Billion )
  12. Global Payment Terminal Solution Market By Region, From 2022 - 2027 ( USD Billion )
  13. Global Transaction Management Market By Region, From 2022 - 2027 ( USD Billion )
  14. Global Fraud Management Market By Region, From 2022 - 2027 ( USD Billion )
  15. Global Hosted POS Market By Region, From 2022 - 2027 ( USD Billion )

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