The global NFC payment devices market size was valued at $16.35 billion in 2020, and is projected to reach $67.71 billion by 2028, growing at a CAGR of 19.5% from 2020 to 2028.
A NFC payment device offers a contactless payment service, which allows people to transfer or receive money with the use of smartwatch, wristbands, smart rings and other devices. Unlike mobile payments that are done through the internet, NFC payments are carried out in close physical proximity preventing unauthorized access during the transaction(s). In NFC-enabled transactions, the payment and reader devices must be near to each other to proceed with the transaction so that NFC chips can interchange cryptographic data to complete the transaction.
Numerous benefits provided by NFC payment devices include high security, hassle free transaction, faster transaction processing speed, and others. This increases the adoption of NFC payment devices among people, thereby driving the growth of the NFC payment devices market growth. Furthermore, various banks and financial institutions such as Axis Bank are providing NFC payment devices for convenient, fast, and secure payment processing systems. In addition, surge in penetration of contactless payment system at various retail stores, petrol pump stations, and restaurants positively impacts the growth of the market.
However, battery drain issues and risk of stolen or lost wearables is expected to hamper the NFC payment device market growth. On the contrary, increase in use of advanced technologies, such as 5G and blockchain technology, in payment is expected to offer remunerative opportunities for the expansion of the market during the forecast period.
By device type, the NFC payment devices market was led by the smart watches segment in 2020, and is projected to maintain its dominance during the forecast period. Increase in adoption of smart watches across the world and rise in penetration of high-speed internet connectivity across the globe drive the growth of the market in this segment. However, the smart rings segment is expected to grow at the highest rate during the forecast period, owing to rise in adoption of cloud enabled rings among the end users across the globe. In addition to this, growing adoption of smart rings among the developing nations of Asia-Pacific owing to its ability to track various fitness and health-related issues such as monitoring physical activities, blood pressure levels, sleep time, walk count, heartbeat count, and pulse rates provides lucrative opportunity for the market.
Region-wise, the NFC payment devices market share was dominated by North America in 2020, and is expected to retain its position during the forecast period. This is attributed to surge in government initiatives across the U.S. and Canada to support digital payment system and availability of high-speed internet connectivity across the region. However, Asia-Pacific is expected to witness significant growth during the forecast period, owing to rise in demand among merchants and consumers to reduce billing and transaction time across the developing nations of Asia-Pacific.
The report focuses on the growth prospects, restraints, and trends of the global NFC payment devices market analysis. The study provides Porter’s five forces analysis to understand the impact of various factors, such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers, on the global NFC payment devices market share.
The global NFC payment devices market revenue is segmented into device type, application, and region. In terms of device type, the market is divided into smart watches, fitness trackers, payment wristbands, smart rings and others. Depending on application, it is fragmented into grocery stores, bars & restaurants, drug stores, entertainment centers and others. Region-wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
By Device Type
Smart Watches accounted for the highest market share in 2020
The key players profiled in the NFC payment devices market analysis are Apple, Inc. Fitbit, Inc., Gramin Ltd, Huawei Technologies Co., Ltd., Jakcom Technology Co. Inc., McLear Ltd., Nymi, Inc., Samsung Electronics Co. Ltd., Sony Corporation, and Xiaomi Corporation. These players have adopted various strategies to increase their market penetration and strengthen their position in the NFC payment devices industry.
COVID-19 impact analysis
The NFC payment devices market has witnessed significant growth in the past few years. The outbreak of the COVID-19 pandemic has driven the market to exhibit further rise in 2021. This is attributed to implementation of lockdown by governments in majority of the countries and growing use of digital payment service across the globe to prevent the spread of COVID-19. Furthermore, the NFC payment devices market is projected to prosper in the coming years after the recovery from the COVID-19 pandemic. This is attributed to increase in adoption of contactless payments by end users and allowing use of mobile payment service to customers by banks and financial institution across the globe.
Entertaiment Centres application is projected as one of the most lucrative segments.
Top impacting factors
Emerging demand for wearable devices and contactless payment for secure and safer payment transaction
Increase in digitization across the globe and changes in lifestyle of people in developing and developed nations are driving the growth of the market. In addition, surge in adoption of wearable devices for various purposes, including fitness, fashion, and contactless payments boosts the growth of the market. Furthermore, increase in cyber-attacks on online payments and mobile payments systems across the globe have shifted the preference of many users toward the adoption of contactless payments systems. Thus, major banks and FinTech industries across the globe have adopted wearable and contactless payment services to improve the security of the transaction process and to ease up the transaction process. For instance, according to a report published by Visa in Australia in 2019, around 90% of the total transaction made in Australia and Czech Republic was through contactless payment devices, which is driving the growth of the market. Furthermore, advancements in contactless payments and wearable devices such as biometrics and EMV-enabled wearable devices for increasing the security features are anticipated to propel the growth of the NFC payment devices market during the forecast period.
Surge in penetration of contactless payment system in various retail stores, petrol pump stations, and restaurants
Surge in penetration of contactless payment systems in various retail stores, petrol pump stations, and restaurants, is providing lucrative opportunity for the market. Furthermore, growing adoption of contactless payment system among the retailers due to its numerous benefits, such as reducing payment transaction processing time, improving operational efficiency of the organization, and delivering hands-free transaction services to the customers, propels the growth of the NFC payment devices market across the globe. Moreover, increase in use of digital payment technology among the vehicle users and different petrol pumps across the developing nations surges the demand for NFC payment devices systems in the near future. In addition, governments across the developing countries are installing NFC-enabled contactless payment systems in various fuel stations and other places to provide hassle-free transaction services to their people, thereby driving the growth of the market.
Asia-Pacific would exhibit the highest CAGR of 21.0% during 2021-2028
Key Benefits For Stakeholders
- The study provides an in-depth analysis of the global NFC payment devices market forecast along with the current & future trends to explain the imminent investment pockets.
- Information about key drivers, restraints, & opportunities and their impact analysis on global NFC payment devices market trends is provided in the report.
- Porter’s five forces analysis illustrates the potency of the buyers and suppliers operating in the industry.
- The quantitative analysis of the NFC payment devices market from 2021 to 2028 is provided to determine the market potential.
Key Market Segments
By Device Type
- Smart Watches
- Fitness Trackers
- Payment Wristbands
- Smart Rings
- Grocery Stores
- Bars & Restaurants
- Drug Stores
- Entertainment Centers
- North America
- Rest of Europe
- Rest of Asia-Pacific
- Latin America
- Middle East
Key Market Players
- Apple, Inc.
- Fitbit, Inc.
- Gramin Ltd
- Huawei Technologies Co., Ltd.
- Jakcom Technology Co. Inc.
- McLear Ltd.
- Nymi, Inc.
- Samsung Electronics Co. Ltd.
- Sony Corporation
- Xiaomi Corporation
NFC Payment Devices Market Report Highlights
By DEVICE TYPE
Key Market Players
SONY CORPORATION, SAMSUNG ELECTRONICS CO. LTD., XIAOMI CORPORATION, MCLEAR LTD, JAKCOM TECHNOLOGIES CO, INC, APPLE, INC, FITBIT, INC, NYMI, INC, GRAMIN LTD, HUAWEI TECHNOLOGIES CO, LTD
The adoption of NFC payment devices has increased over the years to boost the security of financial transaction during payment process. Increase in use of advanced technology in banks and financial institutions, rise in use of various e-platforms among people, and increase in integration of contactless payment technologies in mobile payment app are some of the important factors, which boost the adoption of NFC payment technology across the globe. Furthermore, numerous benefits provided by NFC payment devices include conveniently making online payment transaction, improving operational efficiency by reducing payment transition time, and reducing fraudulent activities in money transaction, which propel the growth of the NFC payment devices market across the globe.
Key providers of NFC payment devices, such as Apple Inc., and Fitbit, Inc. account for a significant share in the market. According to industry experts, the NFC payment devices market is expected to witness increased adoption in the coming years, owing to rise in adoption of wearable payments among people for fast and secure payment transactions. In addition, increase in adoption of advanced digital payment technology, such as growth in adoption of mobile point-of-sale (POS) machine, in retail industries in developing nations, such as China, India, and Japan, is expected to provide lucrative opportunities for the market growth. North America is expected to dominate the market during the forecast period while emerging countries in Asia-Pacific and Latin America are projected to offer significant growth opportunities.