NFC Payments Market Expected to Reach $507.1 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “NFC Payments Market," The nfc payments market size was valued at $25.8 billion in 2022, and is estimated to reach $507.1 billion by 2032, growing at a CAGR of 35.9% from 2023 to 2032.

The most common method of contactless communication between two devices is Near Field Communication (NFC). It enables users to transfer data by waving an NFC phone, NFC wallet over an NFC-compatible payment reader or card machine. NFC-enabled devices generate a radio frequency current that is recorded by  contactless payment machine in close vicinity using a radio frequency identifier that reads the information and performs the payment. NFC is a subset of radio-frequency identification (RFID), a technology that identifies objects via radio waves. To successfully complete transactions, there is no need for the inclusion of numerous layers of identification. This method offers advantages in terms of convenience, security, and speed.

The NFC payments market have emerged as a solution that redefines the way consumers make low-value purchases, offering an experience that is fast, convenient, and secure. This technology eliminates the need for individuals to carry physical cash, count change, or worry about having the exact amount for a transaction. It simplifies the payment process, making it particularly appealing to time-pressed consumers who appreciate the ease of ‘tap and go’ transactions. This ‘tap and go’ convenience extends to various aspects of daily life, from public transport and tolls to parking facilities, gas stations, and pharmacies. One of the standout features of NFC payments is the absence of the requirement to sign or enter a PIN, making it an ideal choice for those seeking quick and hassle-free transactions. Whether it is a visit to a quick-service food and drink outlet, the purchase of entry tickets to entertainment venues, or grabbing essentials at a convenience store, NFC payments eliminate the need to stand in queues, enhancing the overall shopping experience. These factors anticipated to boost the NFC payments market. 

However, a notable concern surrounding contactless card transactions is the absence of PIN authorization, which can raise apprehensions regarding potential fraudulent purchases in the event of card loss or theft. Also, with the support of a robust fraud detection system and a multi-layered security approach, customers often maintain a sense of caution when it comes to utilizing contactless payment methods. This apprehensive mindset can pose challenges for businesses seeking to embrace and promote tap-to-pay payment options. Despite the advanced security measures in place, addressing and alleviating customer concerns surrounding contactless payments remains a key consideration for companies aiming to encourage wider adoption of this technology. These factors are anticipated to restrain the in the upcoming years.

The increasing prevalence of contactless payment technology signifies a remarkable shift in how individuals conduct transactions for goods and services, both conveniently and on the go. This trend, driven by the surge in popularity of mobile payments, contactless credit cards, and modern payment systems, shows no signs of slowing down. In recent years, the steady decline in traditional cash points, along with the transition towards online banking and streamlined payment processes, has accelerated the global move towards a cashless society. This transition offers a multitude of advantages for both individuals and businesses. From an individual perspective, the ease of making purchases without the need to carry physical cash while shopping or dining out is a significant convenience. Moreover, it mitigates the risk of financial loss in the event of a wallet theft while on the move. In addition, the transition to a cashless economy enhances payment tracking capabilities, aiding law enforcement agencies in identifying individuals engaged in unlawful activities. These factors are anticipated to boost NFC payments market growth.  

The NFC payments market share is segmented on the basis of device type, end user, and region. By type, it is classified into smartphones, smartwatches, tablets, EMV cards, and others. By end user, the market is classified into retail stores, hospitality, healthcare services, and others. By region, the is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The key players profiled in the NFC Payments market analysis report Google Pay, Apple Pay, Mastercard Paypass, Visa Paywave, Samsung Pay, PayPal, Venmo, Square Wallet, Pomelo Pay, and WePay.

The report offers a comprehensive analysis of the global NFC payments market trends by thoroughly studying different aspects of the market including major segments, market statistics, market dynamics, regional market outlook, investment opportunities, and top players working towards the growth of the NFC payments market. The report also highlights the present scenario and upcoming trends & developments that are contributing toward the growth of the market. Moreover, restraints and challenges that hold power to obstruct the are also profiled in the report along with the Porter’s five forces analysis of the market to elucidate factors such as competitive landscape, bargaining power of buyers and suppliers, threats of new players, and emergence of substitutes in the market.

Key Findings of the Study

• Based on device type, the smartphones sub-segment emerged as the global leader in 2022 and is anticipated to be the fastest-growing during the forecast period.
• Based on the end user, the retail stores sub-segment emerged as the global leader in 2022 and is predicted to show the fastest growth in the upcoming years.
• Based on region, Asia-Pacific registered the highest market share in 2022 and is anticipated to generate the maximum revenue during the forecast period.