The mobile payment industry has evolved over the past decade with advanced technologies and innovative developments by the key players for providing ease of payment using devices such as mobile handsets, point of sale terminals, NFC chips, smart cards, and others. Contactless payment systems comprise smart cards or other devices that integrate RFID or NFC technologies for making secure and contactless payment. Unlike mobile payments that are done through the internet, contactless payments are carried out in close physical proximity preventing unauthorized access during the transaction(s).
Near Field Communication (NFC) technology enables contactless payment by using standard-based wireless communication technology for exchanging information between a device and a point of sale terminal, thereby offering better and hassle-free customer experience. Moreover, NFC is used in mobile wallet, which is convenient for secured money transfers and ticketing transactions.
The global contactless payments market is driven by reduced transaction time, convenience in processing low-value payments, and increased revenue opportunities. However, high costs involved for the installation of EPOS terminals and lower rate of adoption hamper the contactless payments market growth.
The global contactless payments market is segmented based on device type, industry vertical, and region. Based on device type, it is divided into mobile handsets, point of sale terminals, NFC chips, smart cards, and others. On the basis of industry vertical, it is classified into BFSI, retail, IT & telecom, transportation, hospitality, government, and others. The market is analyzed based on region across North America, Europe, Asia-Pacific, and LAMEA including country level analysis for each region.
The key players operating in the contactless payments market include Ingenico Group, Verifone Systems, Inc., Inside Secure, on Track Innovations, Oberthur Technologies SA, Proxama, PLC., Wirecard AG, Giesecke & Devrient GmbH, Gemalto N.V., and Heartland Payment Systems, Inc.
Global Contactless Payments Market Segmentation
Top Impacting Factors
Reduced Transaction Time
Contactless payments are transactions performed quickly without compromising on security & privacy. These transactions are fast-paced as they do not require any pin or password to process the payments.
Contactless payments offer better collaboration in corporate environments to ensure rapid & secure transactions. In addition, these payments offer security of the card details, which are stored in mobile phones in the form of a secure element. This secure element could be in the form of subscriber identity module (SIM), secured chips, or secure digital card. Moreover, the hardware encryption can be only used in close proximity to the point of sale that makes contactless payments one of the most secure payments.
Lack of Awareness and Trust
Concerns regarding theft and security have created lack of trust among the public. The absence of pin facility during the transaction further proliferates this concern. Moreover, contactless cards are accepted at fewer locations as compared to magnetic stripe cards. This has hampered the contactless payments market growth to a prominent extent.
- This study includes the analytical depiction of the global contactless payments market along with current trends and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and opportunities along with detailed impact analyses.
- The current market is quantitatively analyzed from 2016 to 2023 to highlight the financial competency of the industry.
- Porters five forces analysis illustrates the potency of buyers & suppliers in the global contactless payments industry.
Contactless Payments Market Key Segments:
By Device Type
- Mobile Handsets
- Point of Sale Terminals
- NFC Chips
- Smart Cards
By Industry Vertical
- IT & Telecom
- North America
- Rest of Europe
- Rest of Asia-Pacific
- Latin America
- Middle East
Key Market Players
- Ingenico Group
- Verifone Systems, Inc.
- Inside Secure
- on Track Innovations
- Oberthur Technologies SA
- Proxama, PLC.
- Wirecard AG
- Giesecke & Devrient GmbH
- Gemalto N.V.
- Heartland Payment Systems, Inc.