GVR Report cover Face-swiping Payment Market Size, Share & Trends Report

Face-swiping Payment Market Size, Share & Trends Analysis Report By Type (Payment Equipment, Payment System), By Application (Retail, Restaurant, Travel), By Region, And Segment Forecasts, 2022 - 2030

  • Report ID: GVR-4-68039-989-5
  • Number of Pages: 150
  • Format: Electronic (PDF)
  • Historical Range: 2017 - 2020
  • Industry: Technology

Report Overview

The global face-swiping payment market size was valued at USD 4.18 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 18.9% from 2022 to 2030. The growth can be attributed to the increasing adoption of face-swiping payment technology by consumers and merchants for small-scale transactions. The rise in the adoption of technology can be attributed to lucrative benefits offered by face payments such as reduced transaction time and ease in processing payments. Additionally, the rising demand for contactless payments worldwide is another major factor expected to drive the industry’s growth. Several governments to enhance the customer experience are implementing face recognition technology enabling travelers to process payment by swiping faces.

 U.S. face-swiping payment market size, by type, 2020 - 2030 (USD Million)

For instance, in October 2021, the city of Moscow launched a new Face Pay, a face recognition payment service that will be implemented at over 240 Mosmetro stations. To use Face Pay, metro riders are required to download the Mosmetro smartphone application, upload their picture, and link their metro cards and bank account. With this launch, the Moscow authorities aim to lower the payment processing times and shorten the queues to avoid physical contact during the COVID-19 pandemic. Thus, such initiatives are further anticipated to drive the growth of the market.

The technological advancements in face-swiping technology such as the integration of IoT in face-swiping solutions is anticipated to fuel the growth of the market. Furthermore, the rising launches of face-swiping solutions and facilities offered by market players to enable customers to proceed with payments using face-swiping technology bode well for the growth of the market. For instance, PopID, a Los Angeles-based technology company, uses face detection technology to facilitate consumers to make payments at restaurant chains. This PopPay platform is used in over 100 restaurants, including approximately 35 in California. It advances the company's PopEntry product, which uses facial recognition to allow people to enter an office or building.

The face-swiping payment market is anticipated to be driven by a variety of high-tech technological features. Some of these features include facial 3D depth, blink detection, facial motion recognition, bright pupil effect detection, average difference detection, optical flow field judgment, and other algorithms that enable quick and secure payments. The accuracy of face detection technology is much greater than the judgment and recognition ability of the human eye which lowers the security concern while utilizing the technology. Furthermore, the growing investments in the face-swiping payment technology providing companies by venture capital firms bode well for the industry’s growth.

Though the market is expected to witness growth in the forecast period, some of the challenges are anticipated to restrain the growth. For instance, technical glitches such as poor lighting and low resolution, among others while using face-swiping payment technology can fail while authorizing the user. Furthermore, the high costs involved in the implementation of face-swiping technology and concerns over the level of security provided by face-swiping payment solutions are expected to hinder growth. However, the increasing integration of risk management systems and computer algorithms for increased accuracy and security is further anticipated to create new growth opportunities.

COVID-19 Impact Analysis

The COVID-19 pandemic positively impacted the growth of the face-swiping payment industry. The norms and regulations for social distancing benefited the companies offering face-swiping technology owing to the demand created for touchless payments. Furthermore, the growth in the partnerships and launches of face-swiping solutions during the COVID-19 pandemic is projected to drive the industry’s growth over the forecast period. For instance, in May 2022, Mastercard, a financial services company, announced the launch of the biometric payment technology enabling consumers to process payments with their face or hand at checkout.

Type Insights

The payment equipment segment accounted for the largest revenue share of more than 58.0% in 2021. The factors such as the growing popularity of cashier-less ordering kiosks in several fast food restaurants such as Wendy's and McDonald's are driving the growth. Furthermore, the restaurants such as CaliBurger, a burger chain, have installed self-ordering kiosks with facial recognition technology and artificial intelligence to enable customers to order food, make payments, and log into the loyalty program of the chain. It also stores and uses previous order data to customize orders for customers. Thus, such disruptions in the payment equipment space are further anticipated to fuel the segment's growth.

The payment system segment is anticipated to witness the fastest growth in the forecast period. The growing deployment of payment systems acquired with biometric sensors for face recognition within POS allowing customers to make payments through face-swiping is propelling the growth of the segment. Furthermore, these systems can be built with smart contracts on a custom blockchain deployment, making payments efficient and secure. Hence, the rising popularity of blockchain technology is anticipated to fuel the growth of acceptance of payment systems.

Application Insights

The retail segment dominated with a revenue share of over 32.0% in 2021. The majority of the market players across the globe are rolling out face-swiping payments as part of the efforts to streamline their operations and enhance customer experience. For instance, in March 2021, the X5 group announced the release of a face recognition payment service. The service is now available through 52 Perekrestok supermarket chains and will be expanded to 150 supermarkets in the coming years. Thus, such product development and capability expansion initiatives by market players in the retail sector are expected to fuel the segment’s growth over the forecast period.

Global face-swiping payment market share, by application, 2021 (%)  

The travel segment is anticipated to witness steady growth over the forecast period. The rapid growth of face-swiping payment technology and the growing preference for touchless payments due to the pandemic is among the significant factors expected to drive the segment's growth. Furthermore, various initiatives taken by transport companies to encourage the use of face-recognition payment systems are further boosting segment growth. For instance, in January 2019, Jinhua City in China attempted to pay for bus fares using face recognition. This system allows commuters to recognize and pay the bus fare with their faces within 1 second by aligning their face with the bus terminals' face recognition cameras.

Regional Insights

Asia Pacific dominated the market in 2021 and accounted for a share of over 46.0% of the global revenue. The rapid expansion is attributed to rising awareness about the benefits of face-swiping payment methods in countries such as India, China, and Japan. The innovative efforts made by various regional companies to encourage the use of face-swiping payments are also expected to contribute to regional growth. According to a study conducted by Apexx Global in March 2020, Tencent has installed face-swiping payment technology at 18 stations in Shenzen, each with 28 automated door machines and 60 self-service ticket processing units powered by a 5G network.

Face-swiping Payment Market Trends by Region

North America is expected to witness steady growth over the forecast period. The growing innovation by face-swiping payment solution providers across North America is expected to boost regional growth. For instance, in May 2022, MasterCard announced a new face recognition payment platform that allows customers to make payments using their faces or hand gestures. MasterCard's new payment system is known as 'smile to pay.' The cardless system is designed to decrease transaction time, shorten store queues, increase security, and improve hygiene.

Key Companies & Market Share Insights

The market is highly consolidated due to the presence of several predominant players. The industry players aim for new product launches as part of their efforts to improve their offerings. For instance, in May 2021, Telpo, a key professional smart terminal and solution provider specializing in intelligent payment terminals and smart POS terminals, launched Telpo C9, a POS terminal for the financial sector that supports face recognition. It is an intelligent POS solution that is immensely adaptable to various frameworks.

To further broaden their global presence, multiple companies are working on strategic planning such as mergers, partnerships, and acquisitions. For instance, PopID and Panasonic Corporation announced a partnership in June 2020 to provide face-detection ordering and payment processes to the retail and restaurant industries. As a result of this collaboration, Panasonic Corporation used PopID's PopPay solution in POS terminals. Some prominent players in the global face-swiping payment market include:

  • PopID, Inc.

  • FacePay

  • PayByFace B.V.

  • VisionLabs

  • PAX Global Technology Limited

  • Alipay

  • NEC Corporation

  • SnapPay Inc.

  • Mastercard

  • CloudWalk Technology Co. Ltd.

Face-swiping Payment Market Report Scope

Report Attribute

Details

Market size value in 2022

USD 4.62 billion

Revenue forecast in 2030

USD 18.46 billion

Growth rate

CAGR of 18.9% from 2022 to 2030

Base year of estimation

2021

Historical data

2017 - 2020

Forecast period

2022 - 2030

Quantitative units

Revenue in USD million and CAGR from 2022 to 2030

Report coverage

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

Segments covered

Type, application, region

Regional scope

North America; Europe; Asia Pacific; Latin America; Middle East & Africa

Country scope

U.S.; Canada; Germany; U.K.; France; China; India; Japan; South Korea; Australia; Brazil

Key companies profiled

PopID, Inc.; FacePay; PayByFace B.V.; VisionLabs; PAX Global Technology Limited; Alipay; NEC Corporation; SnapPay Inc.; Mastercard; CloudWalk Technology Co. Ltd.

Customization scope

Free report customization (equivalent to up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope

Pricing and purchase options

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Global Face-swiping Payment Market Segmentation

The report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global face-swiping payment market report based on type, application, and region:

Global Face-swiping Payment Market Segmentation

  • Type Outlook (Revenue, USD Million, 2017 - 2030)

    • Payment Equipment

      • POS Equipment

      • Kiosk

    • Payment System

  • Application Outlook (Revenue, USD Million, 2017 - 2030)

    • Retail

    • Restaurant

    • Travel

    • Others

  • Regional Outlook (Revenue, USD Million, 2017 - 2030)

    • North America

      • U.S.

      • Canada

    • Europe

      • Germany

      • U.K.

      • France

    • Asia Pacific

      • China

      • India

      • Japan

      • South Korea

      • Australia

    • Latin America

      • Brazil

    • Middle East & Africa

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