The demand within the global market for contactless payment transaction has been expanding on account of the need to make secure, safe, and easy payments across several industrial units. Contact payment transaction involves the use of near field communication (NFC) or RFID technologies in order to debit or credit money from one account to the other. The advent of contactless payment transaction has eased buying procedures for individuals, companies, and other entities. Owing to the aforementioned factors, it is legit to expound that the global market for contactless payment transaction would experience an unprecedented rise in demand over the coming years.
The ability to make online payments from laptops, smart phones, and other smart devices has helped people in streamlining their tasks. Furthermore, most people prefer to carry as little cash as possible during travel and other commutes, and this brings contactless payment transaction services to the fore. Over the past decade, several industries including healthcare, automotive, and infrastructure have become reliant on the use of contactless payment for several purposes. The retail sector has emerged as the most prominent consumer of contact payment transaction services in recent times. Furthermore, the popularity of credit and debit cards has led to the launch of multiple mobile apps to that facilitate contactless payment transactions.
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A report by Transparency Market Research (TMR) predicts that the global market for contactless payment transaction would expand at an astral CAGR of 55.50% over the period between 2017 and 2025. Furthermore, the global market for contactless payment transaction was valued at US$14.1 bn in 2017 and is expected to reach a value of US$801.4 bn by 2025.
Retail Sector to Attract Demand for Contactless Payment Transaction
On the basis of end-use industry, the global market for contactless payment transaction can be segmented into media and entertainment, healthcare, retail, hospitality, and transport. Amongst these segments, the retail sector has become the most ardent consumer of contactless payment transaction due to the need for swift, easy, and secure transfers. Furthermore, retail stores form an important part of the e-commerce industry, and this further propels demand within the global market for contactless payment transaction. The healthcare sector has also emerged as a key consumer of contact payment transaction services due to the advent of multiple healthcare apps. Based on the mode of payment, the global contactless payment transaction market can be segmented into wearable devices, contactless card, and contactless mobile payment.
Europe to Lead the Global Contactless Payment Transaction Market
The demand for contactless payment transaction has been the highest across Europe, majorly due to the sophisticated retail sector in the region. Moreover, countries such as England, France, and Germany have inducted contactless payment transaction services across several sectors. The market for contactless payment transaction services in North America has been expanding on account of key developments in the media and entertainment industry in the US and Canada. Rising disposable income of the masses in China, Indonesia, and India has created growth opportunities within the market for contactless payment transaction in Asia Pacific.
Some of the key players in the global market for contactless payment transaction are Ingenico Gemalto N.V., Group, and Barclays.
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Contactless Payment Transaction Market Evolution to Change the Face of Digital Payment for Modern Shoppers
Economies around the world have been pursuing digital payment. The contactless payment transaction market has seen some remarkable strides on the back of support by governments and technological advances in payment platforms. Governments especially in emerging economies are intensively supporting the adoption of contactless payments. This has become even more crucial when the currently emerging Covid-19 pandemic mandated the use and adoption of wide spectrum of contactless technologies. The pandemic further caused snags on the wheels of the economy, and the financial sector also left untouched. Digital payments witnessed a surge in the early part of 2020, creating new demands for technology companies and app providers. The proliferating use of mobile devices during these times also led to adoption of digital payments. Further, the growing consumer preference for digital payments is a key trend in the payment transaction market. Over the past few years, there has been surge in popularity of contactless NFC technology in cards. Visa card providers offered by many private banhs had been quick to offer them to their customers. This point also spurred the popularity of contactless payment transition system capabilities, thereby attracting prospective customers.
With the economies gradually opening and consumer sentiments expected to gain force, the retail industry will gain a new momentum. Contactless payment transaction market saw a surge in number of times the contactless payment was made, at retail stores, malls, and hyperstores. Further, high-ticket recurring payments also bolstered the demand in the contactless payment transaction market. This has also nudged stakeholders to cement the technologies to make these transactions secure, convenient, and hassle-free. Particularly, those behind Unified Payment Interface (UPI) have been relentlessly working to improve the convenience of consumers and offer safety without the use of PIN. Regulatory agencies, such as in India, have also relaxed norms for enhancing the limit that is possible for consumers to make in each transaction.
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