The global Contactless Payments Market was valued at US$ 12,316.5 Million in 2021 and is expected to surpass US$ 36,929.05 Million by 2030, registering a CAGR of 13.2% during the forecast period (2022-2030), according to the Global Contactless Payments Market Report, By Device Type (Smart Cards, Smartphones, POS, NFC Chips, and Others), By Component (Solution and Services (Consulting, Integration and Deployment, and Support and Maintenance)), By Vertical (Retail, Hospitality, Energy & Utilities, Transportation & Logistics, BFSI, and Others (Government, Telecommunication, and Education)), and by Region (North America, Europe, Asia Pacific, Latin America, and Middle East and Africa), published by Coherent Market Insights.
Increasing demand for contactless payments from the retail sector is expected to drive market growth during the forecast period. Retailers are modernizing their brick-and-mortar stores to offer secure services to customers and establishing online stores to increase revenue. They are adopting advanced technologies such as big data analytics and cloud computing to increase their presence in the market. Retail manufacturers are using contactless payment methods that provide many benefits, such as reduced transaction time, increased operational efficiency, increased revenue, minimized cost, and others. Contactless payment methods at retail stores reduce transaction processes and queues at the counter. Moreover, the governments are also focusing on introducing new payment methods in order to increase productivity and remain competitive in the market. For instance, in December 2016, the government of India launched BHIM app for Unified Payment Interface (UPI). The common UPI-based BHIM app allows user to send and receive money through their mobile phones by linking their bank accounts. For instance, according to Coherent Market Insights analysis, the number of transactions done through the Bharat Interface for Money (BHIM) app reached 18.8 million in February 2020.
The Global Contactless Payments Market was valued at US$ 12,316.5 Mn in 2021 and is expected to exhibit a CAGR of 13.2% during the forecast period (2022 – 2030).
Key Developments
- In May 2022, CPI Card Group Inc., a leading provider of debit, credit, and prepaid solutions, along with the First Bank subsidiary of FB financial corporation. Announced, the implementation of Card@Once, an instant Issuance solution. It was implemented to provide customers service related to replacement and new card issuing at a faster pace.
- In March 2020, JCB Co., Ltd., a credit card company announced the collaboration with IDEMIA, a contactless payment card-providing company, along with Soft Space Sdn. Bhd., in order to launch JCB Digital Currency.
Contactless Payment Market - Impact of Coronavirus (Covid-19) Pandemic:
Globally, most countries were affected by COVID-19 and most of the countries have announced lockdowns. Moreover, Contactless payment has become a more preferred payment method, as it requires fewer physical interactions. Smartphone-based payment interfaces and digital wallets are the potential solutions to contain the spread of the coronavirus pandemic. Moreover, recent developments in digital payments have encouraged the use of contactless payment methods during the pandemic.
For instance, in April 2020, Upgrade Inc., a U.S.-based loan company, launched a new contactless credit card. The new credit card provides high transaction limit than other payment methods. Moreover, bank authorities and card networks in Germany, the U.K., Austria, and other countries have set higher transaction limits, as people were staying at home and prefer shopping through payment cards only.
All such factors contributed to the high growth in the contactless payment market.
To know the latest trends and insights prevalent in this market, click the link below:
https://www.coherentmarketinsights.com/market-insight/contactless-payments-market-4190
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Key Trends and Analysis of the Global Contactless Payments market:
- Europe held a dominant position in the global contactless payments market in 2021 and is expected to retain its dominance throughout the forecast period. This is owing to increasing payment through smart cards. For instance, according to the Electronic Transactions Association (ETA), contactless payments through Mastercard and Maestro increased by 145% in Europe in 2018. Furthermore, in 2019, according to Coherent Market Insights analysis, transactions through contactless payment methods reached 651 million in the U.K.
- Asia Pacific is expected to show significant growth over the forecast period. The increasing adoption of contactless payment methods from the retail industry is fueling market growth. Retailers are modernizing their conventional payment methods with contactless payment methods, in order to improve productivity and efficiency in the business.
- Among device types, the smartphone segment held a dominant position in the market in 2021 and is expected to retain its dominance during the forecast period. This is owing to increasing demand for live streaming from consumers. For instance, the online video streaming market is expected to exceed US$ 70,000 million in 2021 from US$ 30,000 million in 2016.
- Major players operating in the global contactless payments market include Thales Group, Infineon Technologies AG, Ingenico Group, Wirecard, VeriFone, Inc., Giesecke+Devrient GmbH, IDEMIA, Track Innovations LTD., Identiv, Inc., CPI Card Group Inc., Setomatic Systems, Valitor, PAX, PINPAD, Mobeewave, alcineo, and Paycor, Inc.
