Contactless Payment Market Research Report- Forecast till 2025
According to Market Research Future (MRFR), the global contactless payment market is expected to register a CAGR of 11.2% from 2019 to 2025 (forecast period). The report provides an extensive and reliable overview of the effect of the COVID 19 pandemic on the global contactless payment market.
Contactless Payment is a safe method for the transaction of payments using debit cards, credit cards, key fobs, smartphones, and many others. Contactless payments are served under proximity areas. Embedded technology is used to incorporate an integrated circuit chip and antenna to provide a contactless payment mode. This action itself, without the input of a PIN, would be enough to complete the transaction. There are many benefits of using such a system as contactless payment; this system is simple to use, extremely convenient, particularly in comparison to conventional payment methods and increases the overall efficiency of the payment process.
The recent technological advances in Near Field Communication (NFC) technology and its adoption in smartphones are one of the vital factors driving the market for contactless payments. The increase in smartphone penetration has ensured that NFC is made available to a growing number of people. On the other hand, smartphone manufacturers and other providers have developed contactless payment applications such as Samsung Pay and Google Pay, among others. Increased awareness of these services and technologies, combined with the availability of NFC, increased acceptance of contactless payments and allowed the market to expand.
While lack of trust due to security, theft of data, and misuse of the contactless payment methods other than the authorized user have limited the adoption. Contactless payments do not need a pin to be entered during the transaction, making it less secure than traditional methods. Also, the number of locations where contactless payments are accepted is less than the conventional payment methods. These factors limit the growth of the market.
COVID-19 Impact on Contactless Payment Market
Contactless payments are expected to increase and become a more preferred form of payment amid the spread of COVID-19 as contactless payment methods require less physical interaction. However, a bulletin from the Bank for International Settlements (BIS) says that the risk of transmission of the virus by cash use is lower than other commonly touched items, such as PIN pads and credit card terminals. Perceptions that cash could spread pathogens are likely to alter firms’ and consumers’ payment behavior, regardless of whether concerns are justified or not. Digital wallets or other smartphone-based payment interfaces have emerged as possible payment solutions to prevent the spread of the virus.
New advances in digital payments have facilitated the use of contactless payments in the midst of this pandemic. For example, in April 2020, the Neobank Upgrade (U.S.) introduced a new digital contactless credit card that supports Google Pay and Apple Pay mobile wallets. In addition, bank authorities and card networks in the United States, Germany, the Netherlands, Austria, and Hungary, among other nations, have set higher than usual transaction limits for contactless payment methods. In April 2020, for example, the U.K. Finance Limited raised the spending limit for contactless card payments from EUR 30 to EUR 45. The market is therefore expected to stimulate, with increasing concerns about the transmission of the virus through cash flows.
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The global market for contactless payment has been segmented into technology, component, payment mode, and vertical.
By technology, the global market has been segmented into radio frequency identification, near field communication, and host card emulation.
Based on the component, the global market has been divided into hardware, solution, and service. The hardware segment has been further divided into point of sale, cards, and others. The services segment has been further segregated into consulting, integration and deployment, and support and maintenance.
By payment mode, the global market has been segmented into smartphones, smartcards, and others.
By vertical, the global market has been divided into BFSI, hospitality & travel, media & entertainment, retail, transportation & logistics, healthcare, and others.
Regionally, the global contactless payment market has been categorized as North America, Europe, Asia Pacific, the Middle East & Africa, and South America.
Europe is expected to lead the market with the largest share in the forecast period due to the presence of key market players like Wirecard, Ingenico, and Valitor. The Asia Pacific region is expected to advance to the highest CAGR during the forecast period due to the increasing use of electronic payment technologies.
The Global Contactless Payment Market is defined by the presence of several regional and local providers. Some of the important players in the market are Gemalto NV (Netherlands), Wirecard AG (Germany), Infineon Technologies (Germany), Verifone Holdings, Inc (US), CPI Card Group (US), On Track Innovations (Israel), Ingenico. (France), Giesecke+Devrient (India), Idemia (France), Identiv (US), Valitor (Iceland), Mypinpad (London), Paycore (Turkey), and Alcenio (France).
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Contactless Payment Market Research Report: By Technology (radio frequency identification, near field communication, host card emulation), Component [Hardware (Point of sale, Cards, Others), Solution and Service [Consulting, Integration and deployment, Support and maintenance)], Payment Mode (smartphones, smartcards, others), Vertical (BFSI, Hospitality & Travel, Media & Entertainment, Retail, Transportation & Logistics, Healthcare and others), Region (North America, Europe, Asia Pacific, Middle East & Africa and South America) – Forecast till 2025
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