Over the course of the forecast period, rising adoption of digitalized payment solutions is anticipated to fuel market expansion. To entice customers to choose digital transactions over cash transactions, emerging economies are loosening their tax laws and businesses are offering loyalty benefits on every purchase. In order to provide better security and finer control for offline transactions, the payment industry is moving towards EMV (Europay, MasterCard, and Visa) chip cards, which is anticipated to be another important factor driving the growth of the contactless payments market. Compared to cash payments, contactless payment cards offer great security. For instance, SBI introduced SBI Card Pay, a contactless mobile payment option, for all credit card holders in October 2019. This card enables faster, more practical, and more secure mobile card payment. In addition, contactless payment systems like Google Pay, Samsung Pay, and others are becoming more popular in the payment sector. All of these features give the client or business more security, a cashless transaction experience, better expense management, and reporting based on spending, all of which are anticipated to fuel market expansion.
According to Coherent Market Insights, by the end of 2021, the global Contactless Payment Market is projected to be worth US$ 12,316.5 Mn and is anticipated to expand at a CAGR of 13.2% from 2022 to 2030.
Leading Companies in the Contactless Payments Industry:
1. Thales Group
The company was started in 2000 and is based in Paris, France. The business creates, develops, and produces electrical systems as well as tools and gadgets for the transportation, security, aerospace, and military industries. Customers of AXIS Bank were able to conduct transactions safely and easily thanks to the contactless payment mechanism that Thales Group introduced through wearables in March 2021.
2. Infineon Technologies
The business was started in 1999 and is located in Neubiberg, Germany. Infineon sells chip cards and security devices in addition to semiconductors and systems for the automotive, industrial, and multimarket segments. It was the biggest chip maker in Germany in 2023. Infineon intended to invest €5 billion in the construction of two new factories in Dresden by 2023.
3. Ingenico Group
The company was started in 1980 and is based in Suresnes, France. The business supports safe online purchases. A comprehensive merchant payment SaaS and related services were added to the company's original product line of point of sale (POS) payment terminals. Worldline, a provider of financial services, announced in February 2020 that it will buy Ingenico for €7.8 billion.
4. VeriFone, Inc.
The company was established in 1981 and has its main office in San Jose, California, United States. At the point of sale, Verifone offers technology for value-added services and electronic payment transactions. The financial, retail, hotel, oil, government, and healthcare sectors buy self-service, merchant-operated, and consumer-facing payment systems from Verifone.
5. Giesecke+Devrient GmbH
The firm was started in 1852 and has its headquarters in Munich, Germany. The business offers cash handling solutions, smart cards, and printing for banknotes and securities. G+D purchased a share in Swiss software business Netcetera in 2020. A company that specialised in scalable internet of things (IoT) connectivity solutions, the British Pod Group [21], was bought by G+D in 2021.
6. Identiv
The company was started in 1990 and is based in Santa Ana, California, United States. The company's products are used for a variety of purposes, including corporate employee identity (ID) cards, business email, information technology networks, and facility access control, as well as national ID cards and passports, transportation permits, banking, and other functions.
7. Paycor, Inc.
The company was started in 1990 and is based in Cincinnati, Ohio, United States. Paycor is a company that offers organisations timekeeping software, HR management services, and online payroll processing. Small and medium-sized businesses can use the company's cloud-based software for payroll, human resources, onboarding, and timekeeping.
Definition: A contactless payment is one that uses radio frequency technology (RFID) or near-field communication (NFC) to enable customers to safely pay using debit cards, credit cards, or from payment devices.
