Contactless Payment Market is Set to Attain Valuation of

New Delhi, Feb. 10, 2025 (GLOBE NEWSWIRE) — The global contactless payment market was valued at US$ 52.11 billion in 2024 and is anticipated to reach US$ 196.18 billion by 2033, growing at a CAGR of 15.87% during the forecast period 2025–2033.

Contactless payments have emerged as a transformative force in global transactions, reshaping the way consumers and businesses interact. In 2024, the value of contactless payment transactions is projected to reach a staggering $15.7 trillion by 2027, reflecting the transformative impact of this technology on everyday commerce. Over 60% of all in‐store transactions in the United States are expected to be contactless by the end of this year, a testament to the rapid shift toward cashless interactions. In the United States alone, nearly 90% of consumers now use contactless payment methods, while in China mobile payment platforms like Alipay and WeChat Pay process billions of transactions annually, underscoring the global embrace of digital payments. This transition signals the maturity of a trend that defies traditional banking methods, confirming that the global push toward a cashless society is both inevitable and beneficial.

Download Sample PDF Copy @

Further driving this upward trajectory, the global contactless payment market is projected to grow at a compound annual growth rate of 21.5% from 2024 to 2029, ensuring continued momentum in adoption. In revenue terms, the market is expected to escalate from $22.40 billion in 2022 to reach $29.30 billion in 2024, marking a significant expansion in consumer spending habits. Analysts predict that by 2026, contactless payments will account for nearly 40% of all card transactions in the United States. Digital wallets have made their mark by accounting for 30% of global point-of-sale payments in 2023; this trend is forecast to accelerate further as 79% of global in‐store transactions in 2024 occur via tap-to-pay. Together, these insights and statistics paint a dynamic picture of an industry innovating rapidly and reshaping conventional financial practices on a global scale. This dynamic growth is truly transformative.

Key Findings in Contactless Payment Market

Innovation at the Forefront: Cutting-Edge Technologies Globally Driving Contactless Payment Market

Technological innovation is reshaping the contactless payments ecosystem, with nearly 99% of smartphones expected to support contactless capabilities by 2024. This near-universal adoption of NFC technology reinforces the reliability of digital transactions. Over 200 metro stations in Russia have already implemented facial recognition payments, proving that biometrics are swiftly becoming a vital part of urban life. In the United States, firms like PopID have introduced facial recognition payment systems in restaurants and retail outlets, streamlining the payment process and doubling as an advanced security measure. Such pioneering initiatives affirm that technology not only enhances user experience but also strengthens payment infrastructure.

Beyond biometrics, the integration of artificial intelligence has bolstered real-time fraud detection, reducing fraudulent attempts by 80% and instilling undeniable consumer confidence. The adoption of Host-Based Card Emulation (HCE) and advanced Near Field Communication (NFC) is fueling secure, efficient transactions, while digital wallets experience significant growth as they carve out new financial niches in the contactless payment market. The evolving consumer marketplace is undergoing a profound transformation, with contactless payments now a dominant presence. Cutting-edge innovation is further illustrated by revolutionary devices such as FEIG’s cVEND system combined with PureWrist technology. These technological breakthroughs deepen the penetration of contactless solutions into everyday commerce, reshaping payment habits. These technological improvements are catalyzing market expansion and consumer adoption, securing a future where fast, secure, and accessible payments redefine economic transactions, and this seamless evolution firmly integrates innovative technology with daily financial routines worldwide.

Giants of the Industry: Key Players Shaping the Contactless Landscape

Global financial giants are at the forefront of the contactless payment market revolution, paving the way for innovation and enhanced consumer experiences. Visa demonstrated its commitment by launching a $100 million generative AI ventures initiative to further integrate advanced technology into everyday transactions. Mastercard, not to be outdone, introduced a mobile virtual card app that seamlessly merges commercial cards with digital wallets—bolstering both security and customer convenience. Adding to this momentum, Visa established a new global Technology and Product Hub in Poland to nurture breakthrough developments in the European market. In parallel, PayPal has embraced innovation with its “Tap to Pay on iPhone” feature available for both Venmo and its PayPal Zettle platform, enabling small businesses to process contactless payments directly on their devices.

Further consolidating this dynamic landscape of the contactless payment market, Block (formerly Square) has rolled out nearly 100 new features, including enhanced tap-to-pay integration on iPhones. Major players such as Apple Pay, Google Wallet, and Samsung Pay are now industry leaders, with surveys revealing that 85% of customers prefer these options for their transactions. Companies leveraging artificial intelligence for fraud detection and digital identity management are emerging as game changers, while blockchain technology is being deployed to secure and streamline transactions. Organizations implementing Real-Time Payment (RTP) systems meet the market’s growing demand for instant settlements. Moreover, the adoption of contactless payment technology in transportation—exemplified by Nigeria’s Cowry card—underscores the technology’s extensive reach. This robust ecosystem continues to pioneer advancements that revolutionize how we transact globally in digital era.

The Smartphone Revolution: Catalyzing Global Digital Contactless Payment Adoption Worldwide

Smartphone technology has revolutionized the way money is transferred, creating an environment where contactless payment market has soared. The global mobile payment market, heavily reliant on robust smartphone connectivity, is projected to reach US$ 587.52 billion by 2030, a figure that underscores digital commerce’s transformative role. Exponential growth in this sector is driven by the widespread availability of NFC-enabled smartphones, making transactions faster, safer, and more convenient. In prominent markets such as China, India, and Singapore, digital payment solutions are redefining spending habits. Platforms like Alipay and WeChat Pay are processing billions of transactions annually, while the COVID-19 pandemic has further accelerated consumer trust in these contactless methodologies.

Contactless payment market penetration continues to expand as, by 2030, 94% of all smartphones will be NFC-enabled, with expectations of reaching 99% by 2035, thereby enhancing payment compatibility. In the United States, the number of consumers using Apple Pay surged to 55.8 million in 2023 and is projected to climb to 67 million by 2026, reflecting a strong shift toward digital wallets. Reports forecast that the total number of unique contactless mobile payment users will reach 1 billion globally by 2024, while the smartphone penetration rate shows no signs of slowing. Younger generations—particularly millennials and Gen Z—are leading the adoption wave due to the convenience and enhanced security of these systems. Together, these trends underscore a seismic shift in consumer behavior and highlight the transformative influence of smartphone growth on digital commerce. This significant surge in mobile adoption not only reflects technological progress but also signals a paradigm shift in consumer payment behavior worldwide. The integration of digital wallets and NFC technology continues to propel this market forward.

Funding the Future Now: Investments Fueling Contactless Payment Innovation Growth

Investment in contactless payment market has surged in recent years, as evidenced by strategic moves from industry stalwarts. In December 2021, Visa Inc. launched a comprehensive roadmap to bolster payment security in India—a decisive step toward a more secure digital ecosystem. Simultaneously, the contactless payment sector has attracted remarkable investments from venture capitalists and fintech companies, signaling robust confidence in its future. Strategic partnerships have become essential; for example, in March 2022, IDEMIA joined forces with Soft Space to transform tablets and smartphones into point-of-sale terminals, thereby expanding accessibility. The Asia Pacific region has emerged as an investment hotspot, driven by a robust consumer base and favorable economic trends.

Additional financial insights reveal that over 20,000 fundraising rounds have taken place in the contactless payment market, with each round averaging an investment of US$ 20.4 million. Leading investors have collectively poured more than US$ 9.4 billion into this burgeoning field, with major contributions from financial giants such as Goldman Sachs, Walmart, and Flipkart. In a notable instance, Goldman Sachs invested US$ 1.4 billion across 14 companies, thereby reaffirming trust in contactless innovations. The sector is buoyed by forecasts of a 13.5% compound annual growth rate from 2023 to 2031, underscoring steady expansion, while more than 12,100 diverse investors support the industry. Through these combined measures, the contactless payments ecosystem is set to redefine transactional efficiency and security, driving a future where digital payments are omnipresent and highly secure. These astounding investment measures, validated by extensive fundraising activities, reinforce the transformative potential of contactless payments in modern finance. The sector’s robust funding environment continues to attract global investors, ensuring a vibrant future for technological innovation.

Ask For Customization @

Reshaping Finance Systems Rapidly: Contactless Payment Market Impacting Banking Settlement Modes

Traditional banks are undergoing a fundamental transformation as they integrate contactless technology into their operational frameworks. In response to rising consumer demand, banks have installed contactless-enabled point-of-sale terminals and issued contactless cards, ensuring transactions are executed with unprecedented speed and convenience. Financial institutions have also enhanced their digital platforms to support mobile wallets and specialized apps, delivering seamless, real-time customer experiences. This shift has led to faster payment processing and a transformative move from deferred net settlements to real-time gross settlement (RTGS) systems. Fast payment systems (FPS) enable nearly instantaneous settlements on a continuous 24/7 basis, further revolutionizing traditional banking methods. These innovations are redefining the established banking landscape, highlighting an uncompromising push toward digital efficiency and enhanced customer service.

Moreover, the proliferation of contactless payment market has significantly decreased cash handling costs while increasing transaction volumes, thereby encouraging more frequent usage. To support this rapid transition, banks have invested in sophisticated security measures such as tokenization and encryption to counter fraud effectively. The evident shift in consumer preferences away from cash and check transactions underscores a new digital norm. Additionally, the seamless integration of digital wallets has opened fresh revenue stream opportunities for financial institutions. These structural changes have not only improved transaction speed but have also driven operational cost savings for banks worldwide. Furthermore, enhanced security protocols and innovative revenue models are setting new performance benchmarks for modern financial systems.

Global Contactless Payment Market Major Players:

• Alibaba.com
• Amazon.com, Inc.
• American Express Company
• Apple Inc.
• Giesecke & Devrient GmbH
• IDEMIA
• Mastercard
• PayPal Holdings Inc.
• PayU
• Square, Inc.
• Thales
• Visa Inc.
• Other Prominent Players

Key Segmentation:

By Solution

• Security and Fraud Management
• Payment Terminal Solution
• Transaction Management
• Hosted Point-of-Sales
• Analytics

By Application

• Government
• Healthcare
• Retail
• Transportation
• Hospitality

By Device

• Point-of-Sales Terminals
• Smartphones & Wearables
• Smart Cards

By Region 

• North America
• Europe
• Asia Pacific
• Middle East & Africa
• South America

Inquire about this report before purchasing:

About Astute Analytica

Astute Analytica is a global analytics and advisory company which has built a solid reputation in a short period, thanks to the tangible outcomes we have delivered to our clients. We pride ourselves in generating unparalleled, in depth and uncannily accurate estimates and projections for our very demanding clients spread across different verticals. We have a long list of satisfied and repeat clients from a wide spectrum including technology, healthcare, chemicals, semiconductors, FMCG, and many more. These happy customers come to us from all across the Globe. They are able to make well calibrated decisions and leverage highly lucrative opportunities while surmounting the fierce challenges all because we analyze for them the complex business environment, segment wise existing and emerging possibilities, technology formations, growth estimates, and even the strategic choices available. In short, a complete package. All this is possible because we have a highly qualified, competent, and experienced team of professionals comprising of business analysts, economists, consultants, and technology experts. In our list of priorities, you-our patron-come at the top. You can be sure of best cost-effective, value-added package from us, should you decide to engage with us.

Contact Us:
Astute Analytica
Phone: +1-888 429 6757 (US Toll Free); +91-0120- 4483891 (Rest of the World)
For Sales Enquiries: [email protected]
Website:
LinkedIn | Twitter | YouTube