The global contactless payment market was valued at USD 16.8 Billion in 2024 and is forecasted to grow to USD 39.6 Billion by 2033, exhibiting a CAGR of 10.0% during 2025-2033. This growth is driven by increased demand for convenient and hygienic payment methods, widespread use of smartphones and wearables, and advancements in secure technologies such as NFC and tokenization. 

Study Assumption Years

• Base Year: 2024
• Historical Year/Period: 2019-2024
• Forecast Year/Period: 2025-2033

Contactless Payment Market Key Takeaways

• Current Market Size: USD 16.8 Billion in 2024
• CAGR: 10.0% (2025-2033)
• Forecast Period: 2025-2033
• Europe dominates the market with over 40.0% share in 2024, driven by high contactless card adoption and regulatory support.
• Smartphones and wearables hold 55.7% of the market share in device segment.
• Payment terminal solutions lead the solution segment with 43.8% market share in 2024.
• Retail is the largest application segment, accounting for 62.0% market share in 2024.
• The US holds 86.80% of the North American market, driven by digital wallet adoption and NFC payment terminals.

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Market Growth Factors

Increased demand for contactless payments market is driven by the migration from customary payment systems to contactless payment solutions. Retailers are focused on faster, safer, and more convenient transactions with the use of a smartphone or other devices to complete transactions at POS terminals. Some examples of contactless payment technologies are Apple Pay, and Google Wallet.

Advancing technology also drives market growth. Near-field communication and radio-frequency identification technology is always advancing, and is becoming more efficient and secure. Partnerships with Dotykacka's Tap-to-phone in the Czech Republic and Slovakia, and VeChain's use of blockchain and NFC chips improve authenticity and security. This improves trust and fosters opportunities, with blockchain poised to streamline processes, strengthen data integrity, and promote business growth.

Numerous international regulations have been enacted to promote contactless payment and protect consumer privacy. Examples include the General Data Protection Regulation (GDPR) and Payment Card Industry Data Security Standard (PCI DSS) in the EU. The RBI's review of electronic trading platforms and fintech regulations in 2024, among other government initiatives to reduce consumer wariness, will encourage a shift from cash-based to digital payments, supporting the market's growth over the forecast period.

Market Segmentation

Analysis by Technology:

• Near Field Communication (NFC): Leading technology enabling fast, secure communication by tapping devices near terminals, foundational for mobile wallets and tap-to-pay systems.
• Radio Frequency Identification (RFID): Used to enhance reliability and efficiency in contactless payments.
• Infrared (IR): Used in certain contactless payment applications.
• Others: Additional technologies facilitating contactless payments.

Analysis by Device:

• Smartphones and Wearables: Lead market with 55.7% share in 2024; NFC integration in wearables removes the need for physical wallets, enhancing user convenience.
• Point-of-Sales Terminals: Devices enabling contactless acceptance at merchant locations.
• Smart Cards: Physical cards embedded with NFC for tap-and-pay payments.

Analysis by Solution:

• Payment Terminal Solution: Devices that use NFC to accept contactless payments, leading with 43.8% market share in 2024; support multiple payment types.
• Transaction Management: Systems that oversee and securely process contactless transactions.
• Security and Fraud Management: Solutions to protect against payment fraud.
• Hosted Point-of-Sales: Cloud-based POS payment solutions.
• Payment Analytics: Tools for analyzing payment data to improve processes.

Analysis by Application:

• BFSI
• Retail: Leading segment with 62.0% share in 2024; contactless payments improve checkout speed and customer satisfaction.
• Transportation
• Healthcare
• Others

Regional Insights

In Europe, contactless payments are expected to have a market share of over 40.0% in 2024, supported by infrastructure and regulations such as PSD2 with support for an open banking ecosystem. Common adoption of NFC-enabled cards and terminals and growing demand for contactless payments in supermarkets, public transport, and quick service restaurants have made Europe the world's largest contactless payments market.

Recent Developments & News

• May 2024: RuPay (National Payments Corporation of India) partnered with TATA IPL and made special wristbands and accessories available to select fans for TATA IPL 2024 playoffs and final.
• March 2024: IndusInd Bank launched 'Indus PayWear', India's first all-in-one tokenizable contactless payment wearable for debit, and credit card transactions.
• March 2024: Federal Bank launched RuPay smart key chain card 'Flash Pay' which is linked to the National Common Mobility Card for contactless payments in metro stations and PoS terminals up to INR 5,000 without entering a PIN.

Key Players

• Giesecke & Devrient GmbH
• Heartland Payment Systems (Global Payments Inc.)
• IDEMIA (Advent International)
• Ingenico Group (Worldline S.A.)
• On Track Innovations Ltd.
• Pax Technology
• Setomatic Systems
• Thales Group
• Valitor
• Verifone Systems Inc. (Francisco Partners)
• Visa Inc.

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