The Global Contactless Payments Market Growth, COVID-19 impact and Forecast (2021-2025)
Global Contactless payment market is segmented based on Device type as Smartphones & wearables, Point of sales terminal and Smart cards; based on solution type as payment terminal solution, transaction management, security & fraud management, hosted point of sales and analytics; based on end user as retail, BFSI, healthcare, IT & telecom, government and others; based on geography as APAC, Europe, North America, and ROW.
Introduction
The Contactless Payment is the secure method for the transaction of the payments through debit cards, credit cards, key fobs, smartphones, and many others. The contactless payments are served under proximity areas.
The embedded technology is used in the implementation of the integrated circuit chip and antenna to provide contactless payment mode. This action itself, without the input of a PIN, will be enough to be able to complete the transaction.
The Contactless payment market growth is attributed to the rapid & secured transactions, real-time transaction processing, and reduces time for executing payments, and other benefits provided by contactless payment option.
There are several advantages of using such a system as contactless payment, this system is easy to use, extremely convenient, especially in comparison to traditional payment methods as well as increases the overall efficiency in the payment method.
Table of Contents
Market Overview
The global contactless payment market is expected to grow to $22.66 billion by 2025 at a CAGR of 11.7%
With the increasing integration of contactless payment technologies in mobile handsets and smartphones, the demand for contactless payment solutions has grown tremendously across all the countries.
Europe dominated the market by a market share of more than 32% in 2019, owing to the high penetration of smartphones and advancements in smart chip technology, and integration of the mobile app with banks.
Key Trends
Tap-and-go card payments at grocery stores and pharmacies grew twice as fast as non-contactless transactions globally and 2.5 times faster in Asia Pacifi
With their ability to support pandemic-friendly transactions, make low-value purchases easier, and support revenue, contactless payments could become a must-have for companies everywhere even faster than analysts are predicting
Key Market Players
The market is dominated by global vendors like Visa, Gemalto, Wirecard, Ingenico group, Thales group and Heartland payment systems.
Growth Drivers and Challenges
Millennials are embracing contactless payments and care less about visiting brick & mortar branches or ATMs, driving the market demand for contactless POS terminals.
Due to massive change in consumer behavior & preferences towards payment options, the demand for mobile & wearable payments is continuing to rise in the market. Therefore, this increased usage of mobile & wearable devices promotes the usage of contactless payments methods.
With the outbreak of Coronavirus Contactless payments have become a more preferred method of payment as it requires less physical interaction.
Concerns regarding theft and security have created a lack of trust among the public. The absence of pin facility during the transaction further proliferates this concern.
The initial setup cost, government limitations on number of contactless payments per day and the limitation on the amount that can be done per day are some deficiencies of contactless payment that hinder the market growth
The COVID-19 pandemic raises the demand for cashless and online. As per the WHO, the virus could stay on cash for days after exposure, so the organization advised the people to use contactless payment whenever possible.