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Contactless Payment Market Research Report Information by Technology (radio Frequency Identification (RFID), Near Field Communication, Host Card Emulation), Component (Hardware, Solution, and Service), Payment Mode (Smartphone, Smartcard, And Others), Vertical (BFSI, Hospitality and Travel, Media & Entertainment, Retail, Transportation and Logistics, Healthcare, and Others), And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) –Market Forecast Till 2032.


ID: MRFR/ICT/8080-HCR | 100 Pages | Author: Aarti Dhapte| May 2024

Contactless Payment Market Overview


The Contactless Payment market size is projected to grow from USD 49.33728 billion in 2024 to USD 160.95 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 15.93% during the forecast period (2024 - 2032). Additionally, the market size for Contactless Payment was valued at USD 41.67 billion in 2023.


The increasing desire for quicker and more convenient transaction options, improved customer experiences, and ease of use of transaction types are the key market drivers contributing to market growth and expansion.


Figure1: Contactless Payment Market, 2018 - 2032 (USD Billion)


Contactless Payment Market Overview1


Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review


Contactless Payment Market Trends


The growing trend towards improved customer experiences is driving the market growth.


The rising trend toward improved customer experiences drives the Market CAGR for contactless payment. The increase might be ascribed to the rising global usage of digital payment services meant to facilitate speedier client payments. Intelligent hardware, creative programs, and sophisticated services are used in contactless payments to enhance conventional payment methods and offer intelligent transactions. Furthermore, card issuers are rapidly introducing contactless payment card technologies worldwide, adding to industry development. Customers are increasingly preferring electronic payments for a number of their regular purchases. Leading businesses throughout the world are focusing their efforts on growing and expanding in an increasingly competitive industry. Contactless payments aim to eliminate friction and give clients a better shopping experience. Reduced transaction time yields good outcomes, which depend on the volume of transactions performed during peak hours.


Additionally, the acceleration of digital payments segment modernization, along with rising demand for more accessibility and stress-free transaction procedures, has boosted the worldwide contactless payment industry. Profits provided by contactless payments, which include faster checkouts & unified expertise, are favored and are expected to boost industry expansion. One of the primary impacts fueling the growth of the contactless payments industry is the current technical advancements in the technology of NFC and its application in smartphones. The increased penetration of phones has ensured that NFC has become accessible to an increasing number of consumers. Additionally, the rising use of technology to lower operating costs and deliver easy and effective services boosts market growth.


Customers are wary of COVID-19 dispersing by touch; thus, contactless has grown into a popular payment option. Because of the worldwide coronavirus pandemic, contactless payment mechanisms are gaining traction. As more people are concerned about the spread of disease through contact, digital ways of payment are becoming more popular. According to one survey performed in the Asia-Pacific region, contactless cash is becoming a popular means of payment, accounting for more than 40% of face-to-face visa purchases in this region. More than 50 governments worldwide proclaimed expanding contactless boundaries on the cards, in most cases magnifying the permissible limitations to provide improved customer convenience.


For instance, In the United States, the prevalence of smartphones reached eighty-five percent in February 2021. Also, wearable developments such as payment wristbands and rings for contactless transactions are projected to boost the market. Thus, it is anticipated that demand for Contactless Payment will increase throughout the projected timeframe due to the rising trend toward improved customer experiences. Thus, driving the Contactless Payment market revenue.


Contactless Payment Market Segment Insights


Contactless Payment Technology Insights


The global Contactless Payment market segmentation, based on technology, includes radio frequency identification, near-field communication, and host card emulation. Radio frequency identification (RFID) dominated the market, accounting for 46% of market revenue (USD 16.2 Billion) in 2022. Clients are primarily concerned about contactless payments' security due to the frequent fear of fraud. Organizations are attempting to address such issues by providing safe ways to pay verified by passcodes.


Contactless Payment Component Insights


The global Contactless Payment market segmentation, based on Components, includes Hardware, Solutions, and Service. The Solutions category generated the highest market revenue of about 40% (USD 14.1 billion) in 2022. The Contactless Payment technology is projected to deliver 1000 times more simultaneous wireless connection than 5G. The future wireless networks of 5G will provide the groundwork for intelligent networks capable of AI operations.


Figure 2: Global Contactless Payment Market, by Component, 2022 & 2032 (USD Billion)


Global Contactless Payment Market, by Component, 2022 & 2032


Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review


Contactless Payment Mode Insights


The global Contactless Payment market segmentation, based on Payment Mode, includes smartphones, smartcards, and others. The smartphone segment dominated the market, accounting for 53% of market revenue (USD 18.7 Billion) in 2022. Smartphone use in daily activities has expanded dramatically in recent years. For example, many prefer using cell phones to purchase at stores.


Contactless Payment Vertical Insights


The global Contactless Payment market segmentation, based on Verticals, includes BFSI, Hospitality & Travel, Media & Entertainment, Retail, Transportation & Logistics, Healthcare, and others. The retail category dominated the market, accounting for 33% of market revenue (USD 11.6 Billion) in 2022. This increase is attributed to an increase in the prevalence of 'tap-and-go' transactions throughout the world. The tap-and-go functionality accelerates during checkout, making payments via contactless technology more accessible for clients in both developed and developing countries.


Contactless Payment Regional Insights


By region, the research provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Contactless Payment market will dominate during the projected timeframe because the region's advancements in electronic payment methods have increased contactless payments during the COVID-19 epidemic. Because of growing concerns about spreading viruses through financial flows, the contactless payment sector is expected to increase significantly in the North American region.


Further, the major countries studied in the market report are the US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.


Figure 3: Global Contactless Payment Market Share by Region 2022 (USD Billion)


Global Contactless Payment Market Share by Region 2022


Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review


Europe region’s Contactless Payment market accounts for the second-highest market share due to the increasing availability of contactless cards and processors from card firms such as Mastercard and Visa; total contactless expenditure has increased in these countries. Further, the German Contactless Payment market holds the largest market share, and the UK Contactless Payment market is expected to grow and expand significantly in the European region during the projected timeframe.


The Asia-Pacific Contactless Payment Market is expected to grow quickly during the projected timeframe. This is due to the existence and concentration of key mobile wallet manufacturers like Alipay, Paytm, PhonePe, and Google Pay present significant opportunities for the Asia Pacific contactless payment sector. Moreover, China’s Contactless Payment market dominates the market share, and the Indian Contactless Payment market is expected to expand and grow steadily in the Asia-Pacific region during the projected timeframe.


Contactless Payment Key Market Players & Competitive Insights


Leading market players invested heavily in research and Development (R&D) to scale up their manufacturing units and develop technologically advanced solutions, which will help the Contactless Payment market grow worldwide. Market participants are also undertaking various organic or inorganic strategic approaches to strengthen and expand their global footprint, with significant market developments including new product portfolios, contractual deals, mergers and acquisitions, capital expenditure, higher investments, and strategic alliances with other organizations. Businesses are also coming up with marketing strategies such as digital marketing, social media influencing, and content marketing to increase their scope of profit earnings. The Contactless Payment industry must offer cost-effective and sustainable options to survive in a highly fragmented and dynamic market climate.


Manufacturing locally to minimize operational expenses and offer aftermarket services to customers is one of the critical business strategies organizations use in the global Contactless Payment industry to benefit customers and capture untapped market share and revenue. The Contactless Payment industry has recently offered significant advantages to the Information technology and software industry. Moreover, more industry participants are utilizing and adopting cutting-edge technology has grown substantially. Major players in the Contactless Payment market, including Gemalto NV, Infineon Technologies, Verifone Holdings, CPI Card Group, On Track Innovations, Wirecard AG, Ingenico, Giesecke+Devrient, Identiv, Valitor, Mypinpad, Idemia, Paycore, and Alcenio are attempting to expand market share and demand by investing in R&D operations to produce sustainable and affordable solutions.


Oracle Corporation is the world's largest software firm, developing and marketing commercial software solutions. It released new improvements to its Oracle Client Experience (CX) Cloud Suite in September 2019. New virtual assistants, including customer service, sales, and marketers, data-enhanced B2B sales abilities, and industry products for telecommunications and media outlets, banking and insurance, and the public domain, are among the most recent enhancements.


PayPal is a digital payment network that allows consumers and companies to make payments to one another. It provides a debit card for settlements, credit card scanners for usage by companies, and LoC alongside online payments. PayPal, Inc. developed a new all-in-one software named PayPal app in September 2021, which delivers improved banking services to its consumers. To improve the client experience, the new PayPal app provides a single dashboard for all users' accounts, a wallet page to handle payment methods, and other banking features.


Key Companies in the Contactless Payment market include




  • Gemalto NV




  • Infineon Technologies




  • Verifone Holdings




  • CPI Card Group




  • On Track Innovations




  • Wirecard AG




  • Ingenico




  • Giesecke+Devrient




  • Identiv




  • Valitor




  • Mypinpad




  • Idemia




  • Paycore




  • Alcenio




Contactless Payment Industry Developments


September 2021: PayPal, Inc. developed a new all-in-one software named PayPal app in September 2021, which delivers improved banking services to its consumers. To improve the client experience, the new PayPal app provides a single dashboard for all users' accounts, a wallet page to handle payment methods, and other banking features.


September 2019: Oracle Corporation released new improvements to its Oracle Client Experience (CX) Cloud Suite in September 2019. New virtual assistants, including customer service, sales, and marketers, data-enhanced B2B sales abilities, and industry products for telecommunications and media outlets, banking and insurance, and the public domain, are among the most recent enhancements.


The Zoho Group reported the debut of the Zoho Desk. This perspective-aware customer care software puts client concerns in the context of their earlier activities and conversations in January 2016. Based on client interactions, the Zoho Desk assists agents in automatically prioritizing support cases. Filter tickets by parameters such as due date, status, or type of client.


Contactless Payment Market Segmentation


Contactless Payment Technology Outlook




  • Radiofrequency identification




  • Near field communication




  • Host card emulation




Contactless Payment Technology Outlook




  • Hardware




  • Solution




  • Service




Contactless Payment Mode Outlook




  • Smartphones




  • Smartcards




  • Others




Contactless Payment Vertical Outlook




  • BFSI




  • Hospitality & Travel




  • Media & Entertainment




  • Retail




  • Transportation & Logistics




  • Healthcare




  • Others




Contactless Payment Regional Outlook




  • North America



    • US




    • Canada






  • Europe



    • Germany




    • France




    • UK




    • Italy




    • Spain




    • Rest of Europe






  • Asia-Pacific



    • China




    • Japan




    • India




    • Australia




    • South Korea




    • Australia




    • Rest of Asia-Pacific






  • Rest of the World



    • Middle East




    • Africa




    • Latin America





Report Attribute/Metric Details
Market Size 2023 USD 41.67 Billion
Market Size 2024 USD 49.33728 Billion
Market Size 2032 USD 160.95 Billion
Compound Annual Growth Rate (CAGR) 15.93% (2024-2032)
Base Year 2023
Market Forecast Period 2024-2032
Historical Data 2018- 2022
Market Forecast Units Value (USD Billion)
Report Coverage Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
Segments Covered Technology, Component, Payment Mode, Vertical, and Region
Geographies Covered North America, Europe, Asia Pacific, and the Rest of the World
Countries Covered The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil
Key Companies Profiled  Gemalto NV, Infineon Technologies, Verifone Holdings, CPI Card Group, On Track Innovations, Wirecard AG, Ingenico, Giesecke+Devrient, Identiv, Valitor, Mypinpad, Idemia, Paycore, and Alcenio.
Key Market Opportunities The increasing desire for quicker and more convenient transaction options, as well as the trend toward improved customer experiences
Key Market Dynamics The increasing demand for Contactless Payment connectivity The ease of use of transaction types is a key feature projected to drive the worldwide industry


Frequently Asked Questions (FAQ) :

The global Contactless Payment market was projected at USD 41.67 Billion in 2023.

The global Contactless Payment market is anticipated to grow and expand at a CAGR of 15.93% during the forecasted period.

North America had the largest share of the global market.

The key players in the Contactless Payment market are Gemalto NV, Infineon Technologies, Verifone Holdings, CPI Card Group, On Track Innovations, Wirecard AG, Ingenico, Giesecke+Devrient, Identiv, Valitor, Mypinpad, Idemia, Paycore, and Alcenio.

The Radio frequency identification category dominated the market in 2022.

The Solution had the largest share of the global market.

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