Contactless Payment Market size is set to cross USD 100 billion by 2026, according to a new research report by Global Market Insights Inc.
The rapid adoption of smartphones, wearables, communications technologies, and integrated payment applications among consumers and merchants is driving the contactless payment industry growth. Devices integrated with multiple P2P apps facilitate real-time transactions, reducing waiting time and enhancing customer satisfaction.
Growing usage of biometric real-time payment technology in smart cards is expected to fuel contactless payment market expansion as the technology provides secure transactions to end-users. Several industry participants are collaborating with banks to commercialize fingerprint-enabled contactless payment cards.
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Due to the coronavirus pandemic started from 2020, awareness of real-time payment technology among consumers has increased. Several developed and developing countries are raising their contactless payment capitals to conduct safe & secure payment and follow social distancing norms. For instance, in April 2020, to introduce more measures to limit cash usage and physical contact, the UK government raised the contactless payment limit from USD 39 (GBP 30) to USD 59 (GBP 45). Government initiatives to curb the spread of COVID-19 by promoting cashless transactions will increase the demand for such solutions.
Infrared (IR) contactless payment technology to gain traction
Demand for proximity contactless transactions is increasing across several sectors, such as hospitality, retail, and restaurant, for real-time face-to-face transaction processes. Devices used for the implementation of IR wireless technology are cheaper as they consume less power and are compact. The technology covers a much wider area range and provides a more secure transaction owing to point-to-point communications.
Browse key industry insights spread across 300 pages with 425 market data tables and 30 figures & charts from the report, “Contactless Payment Market Size By Type (POS Terminals, Smart Cards), By Technology (NFC, RFID, IR), By Application (Hospitality & Restaurant, Transportation, Healthcare, Retail, Warehouse & Logistics, Entertainment & Media), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Price Analysis, Competitive Market Share & Forecast, 2020 – 2026”, in detail along with the table of contents:
Digitalization of transportation sector globally to boost contactless payment market
Several authorities globally are accepting contactless payment solutions in their transportation sector to provide convenience, portability, and ?exibility to customers. Smart cards that can hold a range of tickets, other transport products, and third-party services are being implemented by transportation authorities.
Secure transaction processes offered by contactless smart cards
The ability to provide fast and convenient transactions will result in the increasing demand for contactless payments in smart debit & credit cards. These cards include built-in tamper-resistant technology, which is difficult to duplicate or forge. Access to stored information can also be protected by PIN and biometrics to counter unauthorized access. Contactless smart cards ensure integrity, confidentiality, and privacy of payment information stored or transmitted. Growing need for secure and convenient transactions has led to the adoption of contactless smart cards globally.
Digitalization in the Asia Pacific banking sector
The Asia Pacific contactless payment market is projected to expand at over 17% CAGR through 2026. China accounted for majority of the regional market share. Additionally, economies in the South Eastern region including Singapore, Malaysia, the Philippines, and Indonesia are widely adopting contactless technologies in their transportation sector.
As a result of the growing demand for digital payments in the region, fintech companies are collaborating with stakeholders to integrate contactless technology in their products.
Strategic alliances among market players remain key strategic initiatives
Prominent players operating in the contactless payment market include On Track Innovations Ltd., PAX Global Technology, PayCore, Thales Group, Valitor, Verifone, Visa, Inc., Heartland Payment Systems, Inc., IDEMIA, Identiv, Ingenico Group SA, Alcineo, Giesecke & Devrient GmbH and Wirecard AG. Stakeholders are undertaking strategic initiatives to use inorganic business strategies and strengthen their position.