NFC Payments Market Outlook - 2027

The market for NFC payments has experienced significant growth and is anticipated to expand in the future with growing cash less and contact less payment preferences. NFC payments are contactless payments, which use near-field communication (NFC) technology to share data among readers and mobile systems such as Apple Pay and Android Pay eWallets and EMV chip cards. NFC transactions are authenticated and extremely protected and the NFC devices must be near together to proceed with transaction. The moment when payment and reader devices are brought close together and activated, NFC chips interchange cryptographic data to render the transfer complete. The cycle produces a lightning-fast transaction loop, which is both easy and one of the most reliable forms of payment.

COVID-19 scenario analysis:

• The coronavirus pandemic has a huge effect on the mobile payment industry as customers and businesses were forced to switch their buying habits significantly, and the banking industry is working to preserve cash access while keeping the customer safe. 
• Many nations across the globe have implemented various regulations on payment processing to keep people safe form the pandemic situation. 
• Major players such as PayPal have introduced QR code scanner system to transfer money instead of physical cash, which possibly leads to avoidance of COVID transmission.

Top impacting factors: Market Scenario Analysis, Trends, Drivers, and Impact Analysis:

Increase in shift of payment form cash to digital and surge in inclination in contactless payments across the globe drives the growth of the NFC Payments Market. In addition, increase customer satisfaction and to provide enhance customer experience companies are adopting NFC payment which boost the growth of the market. However, high cost of deployment and risk of losing card hampers the growth of the market. Furthermore, rising demand for mobile and wearable payments devices and use of security features of emerging technologies, such as blockchain and 5G is expected to provide lucrative opportunity for the market.

The global NFC payment market trends are as follows: 

Game changing QR Code adoptions:

Globally, many banks and non-banks introduce QR codes to merchants and consumers to offer a simple payment solution. Furthermore, quick response (QR) codes engage in payment processing on scanning the merchants code, which allows customer to pay cashless and contact less. The surge in adoption of QR code by Chinese tourists and travelers intending to make cashless transfers in China within recent years has forced the island nation to gradually implement the Chinese QR system. Moreover, six of prepaid e-wallet providers in Europe have partnered with China's Alipay to implement mobile payment network with QR code that enables consumers of each wallet to pay for their transactions throughout 10 European countries. Number of banks across India, U.S and Singapore has also started provide QR Code solutions to its customers for enhanced customer experience.

Rise in adoption to mobile NFC payments:

The trend towards mobile payments is propelled by comfort of use and convenience, improved measures to ensure transactions safety and to streamlined the payment processing system. Driven by top organizations such as Apple, Samsung and Google consumers increasingly adopting mobile or digital wallets to pay for goods and services quickly in person or online, since cards lack many prevailing trend features. Visa reported that, in the past five years, the percentage of people using cash for payments in the U.S. dropped from 24% to 18%.In major emerging country India, the transactions through mobile payments and digi-wallets via QR-Codes, mPOS were increasing.

Market scope and structure analysis:

Key benefits of the report:

• This study presents the analytical depiction of the global NFC payments market along with the 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 analysis of the global NFC payments market share.     
• The current market is quantitatively analyzed from 2020 to 2027 to highlight the global NFC payments market growth scenario.         
• Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.    
• The report provides a detailed market analysis based on the present and future competitive intensity of the market. 

Key segments covered:

Questions answered in banking security market research report:    

• Who are the leading market players active in the NFC payments market?
• What would be the detailed impact of COVID-19 on the market?
• What current trends would influence the market in the next few years?
• What are the driving factors, restraints, and opportunities in the NFC payments market?
• What are the projections for the future that would help in taking further strategic steps?