CONTACTLESS PAYMENTS MARKET ANALYSIS

Contactless Payments MarketSize and Trends

The global contactless payment market is estimated to account for US$ 12,316.5 Mn in terms of value by the end of 2021 and is expected to grow at a CAGR of 13.2% during the forecasted period (2022-2030).

Statistics:

Europe held dominant position in the global contactless payments market in 2019, accounting for 42.8% share in terms of value, followed by Asia Pacific and North America.

Figure 1: Global Contactless Payment Market Share (%), By Region, 2021

Europe is expected to be one of the prominent regions in the global market and witness high growth during the forecast period. This is owing to the high penetration of smartphone and enhancement in the technologies.

 Figure 2: Global Contactless Payment Market (US$ Mn) Analysis and Forecast, 2017 – 2030

The Global Contactless Payment Market was valued at US$ 12,316.5 Mn in 2021 and is expected to reach US$ 36,929.05 Mn by 2030, growing at a CAGR of 13.2% between 2022 and 2030.

Market Opportunity

Increasing use of digitalized payment options is expected to drive market growth over the forecast period. Emerging economies are easing their tax policies and companies are providing loyalty offers on every transaction to encourage people to opt for digital transactions instead of cash transactions. The payment industry is shifting towards EMV (Europay, MasterCard, and Visa) chip cards to provide improved security and finer control for offline transactions, which is expected to be another major factor fuelling the growth of the contactless payments market. Contactless payment card offers high security as compared to cash payment. For instance, in October 2019, SBI launched SBI Card Pay, a contactless mobile payment for all credit card users. This card provides faster, more convenient, and more secure card payment using mobile phones.

Moreover, the payment industry is shifting towards contactless payment methods such as Google Pay, Samsung Pay, and others. Payment industries are using contactless payment methods to protect users from fraud and provide a seamless experience such as Omni channel (personalized user experience), improving the security of cards through EMV (Europay, MasterCard, and Visa), loyalty offers on payment, and cardholder verification method (CDCVM) to verify user identity, which is expected to increase demand for contactless payments market. All these features provide the customer/company with more security, a cashless experience, and better tracking of expenses and reports based on spending, which is expected to drive the growth of the market.