The lack of awareness of contactless payment offers, however, and the lack of adequate infrastructure are hampering market growth. The initial implementation cost, policy restriction on the number of contactless payment transactions per day and the amount cap that can be transacted per day are few contactless payment shortfalls that impede the growth of the contactless payment industry. The risk of spyware, malware, and virus attacks resulting from the use of numerous systems is limiting the global adoption of contactless payment.
According to MRFR, Global Contactless Payment Market is expected to register a CAGR of 11.2% during the review period of 2019 to 2025.
A variety of factors lead to the growth of contactless payment systems such as innovation of contactless payment technologies, increased recognition among buyers of plastic currency, increased purchasing frequency and the need for quick checkout time without the hassle of waiting in long queues. Contactless payment is growing further, making itself a convenient platform for consumers and merchants, advertisers and marketers alike. The need for faster and more efficient payment methods are key factors driving market growth. With the increasing integration of contactless payment technology into mobile handsets and smart phones, demand for contactless payment solutions has grown immensely across all countries. A big change is under way in the retail vertical. Retailers are modernizing their brick-and – mortar shops to offer quality customer support and opening up online outlets to raise sales. To improve their exposure and business reach, they are embracing disruptive innovations, such as cloud storage, big data analytics, physical shops and social networking. Retailers also take advantage of contactless payments, which have a shortened checkout period, increased revenue, improved operational efficiency, and diminished operating costs. Mobile payments at retail stores have helped accelerate the transaction process and decrease counter queues.
The regional Contactless Payment industry has been geographically classified as North America, Europe, Asia-Pacific, Middle East & Africa, and South America.
Due to the presence of key industry players, such as Wirecard, Ingenico and Valitor, Europe is projected to lead the market with the largest share in the forecast era. In terms of market share, the contactless payment industry in Europe is the largest and is strongly fragmented based on multi-currency and multi-language. The region includes a diverse range of countries, from economically and technologically advanced countries like the United Kingdom and Germany to heavily debt-ridden countries like Greece and Austria. The leading countries on the European market are UK, Poland, Spain and Germany. With the growing proliferation of contactless cards and terminals by card providers, such as Visa and Mastercard, overall contactless spending in these countries has risen.
Owing to the growing use of electronic payment technologies, the Asia-Pacific Region is expected to progress to the highest CAGR during the forecast period.
The Global Contactless Payment Market Size has been segmented based on component, payment mode, technology, vertical, and region.
Based on Technology, the market has been segmented into near field communication, radio frequency identification, and host card emulation.
Based on the Component, the market has been segmented into solution, hardware, and service. The hardware segment has been segmented into point of cards, sale, and others. The services segment has been segmented into integration and deployment, consulting, and support and maintenance.
By Payment Mode, the market has been segmented into smartcards, smartphones, and others.
By Vertical, the market has been divided into hospitality & travel, BFSI, retail, transportation & logistics, healthcare, media & entertainment, and others.
The Global Contactless Payment Market is characterized by the presence of several regional and local providers. Some of the key players in the market are Infineon Technologies (Germany), Gemalto NV (Netherlands), Idemia (France), Verifone Holdings, Inc (US), CPI Card Group (US), On Track Innovations (Israel), Wirecard AG (Germany), Ingenico. (France), Giesecke+Devrient (India), Identiv (US), Valitor (Iceland), Mypinpad (London), Idemia (France), Paycore (Turkey), and Alcenio (France).