Contactless Payments Market Report

Contactless Payments Market Analysis, By Device, By Solution (Payment Terminal Solution, Transaction Management, Fraud Management, Hosted POS), By Application, By Region, And Segment Forecasts, 2014 - 2025

Published: October 2017  |  100 Pages  |  Format: PDF  |  Report ID: GVR-2-68038-217-4

Industry Insights

The global contactless payments market size was valued at USD 207.65 billion in 2016 and is expected to grow at a fast pace over the forecast period. This shift in demand can be attributed to the mass adoption of contactless payments by several sectors, thereby offering convenience to the customers.

This enable transaction to be carried out without any physical connection between a consumer’s payment device and point-of-sale terminal. Mobile phone payments, key fobs, stickers, and cards are some of the device, that are used for conducting contactless payments. Contactless payments offer efficient and quick payment solutions through an EMV contactless card, NFC mobile phone, or standard contactless travel card.

U.S. contactless payments market, by solutions, 2014 - 2025 (USD Billion)

U.S. contactless payments market

In contactless payment, purchases are made by waving a card over the reader, thereby enhancing customer experience and reducing queues. As a result, contactless payments enables faster transactions as compared to PIN and chip or cash transactions. Technological innovations, such as contactless rings or bands, in the wearables segment are expected to drive the market.

Device Insights

Based on device, the market has been segmented into smartphones & wearables, point-of-sale terminals, and smart cards. Various financial service providers are offering increased convenient payment mechanism and transaction volumes by providing secure transaction devices.

The use of smartphones has drastically increased in daily activities. For instance, individuals now use smartphones to make payments at stores. Moreover, innovations in wearables such as payment bands and rings are expected to drive the market demand over the forecast period.

Smart cards are expected to gain significant market share over the forecast period as they are easier to use compared to PIN-based Euro Mastercard Visa (EMV) cards.

Solutions Insights

The contactless payment market has been segmented based on solutions into payment terminal solution, transaction management, security and fraud management, hosted point of sale, and analytics. Payment terminal solution accounted for the largest market share in 2016 and is expected to grow further over the forecast period.

Transactions carried out through contactless payments are susceptible to frauds due to which individuals have become more conscious about using these systems. Various contactless technology providers, such as Gemalto and Visa Inc., are continuously upgrading their security protocols to enhance the security management of contactless payments market. Thus, the security and fraud management segment is expected to grow over the forecast period.

Application Insights

Based on applications, the market has been categorized as retail, transportation, healthcare, hospitality, and government. The retail & consumer goods sector offers “tap-and-go” transactions in order to speed up the check-out process, which is expected to further drive the demand in these segments. In addition, these payments also find uses in service businesses, such as movie theaters, gas stations, restaurants, and convenience stores, thereby boosting demand for contactless payments in the retail sector. 

Contactless Payments market by applications, 2016 (%)

 contactless payments market

Various initiatives taken up by the government and public organizations to improve and upgrade the ticketing systems with help of contactless payments. The rising applications of contactless payment in transportation segment is expected to boost the market demand over the forecast period.

The travel and tourism sector is growing globally and hospitality has become one of the most prominent segments of this sector. The use of contactless payments is expected to be highly touted in this segment owing to advantages such as ease and convenience in payments that it offers to travelers.

Regional Insights

North America is expected to dominate the market over the forecast period owing to several advancements that have emerged from the smart chip technology. The high penetration of smartphones is projected to drive demand in Europe. The growth in this region is mainly attributed to the increasing adoption rate, regulatory initiatives such as Euro Mastercard Visa (EMV), global standard for chip cards, adoption of Near Field Communication (NFC) technology.

Additionally, the shift of transit authorities toward the usage of Visa’s payWave service and Mastercard’s PayPass service, in the North American and European regions is expected to augment the growth of the market in these regions. Asia Pacific is expected to emerge as a prominent player in the market owing to the growing population and increasing adoption of payment services.

Competitive Insights

Key participants in the industry include Gemalto, Visa Inc., Giesecke & Devrient GmbH, Heartland Payment Systems, Verifone, Ingenico Group SA, On Track Innovations Ltd., Oberthur Technologies (OT) Morpho, Thales Group, and Wirecard AG. In March 2017, Wirecard AG acquired MyGate Communication, a payment service provider in Africa.

Report Scope

Attribute

Details

Base year for estimation

2016

Actual estimates/Historical data

2014 - 2015

Forecast period

2017 - 2025

Market representation

Revenue in USD Billion & CAGR from 2017 to 2025

Regional scope

North America, Europe, Asia Pacific, South America, and MEA

Country scope

U.S., Canada, Mexico, UK, Germany, France, China, Japan, Australia, and Brazil

Report coverage

Revenue forecast, company share, competitive landscape, growth factors, and trends

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest trends and opportunities in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global contactless payments market based on device, solutions, applications, and regions:

  • Device Outlook (Revenue, USD Billion; 2014 - 2025)

    • Smartphones and wearables

    • Point-of-sale terminals

    • Smart cards

  • Solution Outlook (Revenue, USD Billion; 2014 - 2025)

    • Payment terminal solution

    • Transaction management

    • Security and fraud management

    • Hosted point-of-sale

    • Analytics

  • Application Outlook (Revenue, USD Billion; 2014 - 2025)

    • Retail

    • Transportation

    • Healthcare

    • Hospitality

    • Government

  • Regional Outlook (Revenue, USD Billion; 2014 - 2025)

    • North America

      • U.S.

      • Canada

      • Mexico
    • Europe

      • Germany

      • UK

      • France

    • Asia Pacific

      • China

      • Japan

      • Australia

    • South America

      • Brazil

    • Middle East and Africa

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