Contactless Payment Market Size | Share and Trends 2024 to 2034

Contactless Payment Market Size and Forecast 2024 to 2034

The global contactless payment market size accounted for USD 48.37 billion in 2024 and is expected to reach around USD 213.39 billion by 2034, expanding at a CAGR of 16% from 2024 to 2034. The North America contactless payment market size reached USD 19.60 billion in 2023.

Contactless Payment Market Key Takeaways

• North America led the global market with the highest market share in 2023.
• By solution, the payment terminal solution segment contributed more than 40% of revenue share in 2023.
• By application, the retail segment recorded more than 60% of revenue share in 2023.
• By device, the smartphones & wearables segment generated over 60% of revenue share in 2023.

U.S. Contactless Payment Market Size and Growth 2024 to 2034

The U.S. contactless payment market size was estimated at USD 13.75 billion in 2023 and is predicted to be worth around USD 71.85 billion by 2034, at a CAGR of 16.2% from 2024 to 2034.

North America held the largest share of 47% in the contactless payment market in 2023. Contactless payment solutions offer minimal physical interactions which make them ideal for quick stops such as food and beverage stations or supermarkets. The rate of consumers for the same create a significant factor for the market to expand at a notable rate in the upcoming years. Additionally, the COVID-19 pandemic boosted the importance for safety and hygiene. Contactless payments eliminate physical contact at stores, this brings an appealing growth factor for post-pandemic world. On the other hand, the overall popularity of tap-to-pay cards and transactions in North America countries create another supplementary factor for the market to expand.

Growth Factors

Escalation in the rate of modernizations in the digital payments segments along with the swelling demand for higher accessibility and stress free payment procedures has given an upsurge to global contactless payment market. The profits delivered by contactless payments such as quicker checkouts and unified experience are being favored and are anticipated to fuel growth of the market. The current technological expansions in the NFC technology and its implementation in smartphones is one of the foremost influences stimulating the growth of contactless payments market. The rise in the saturation of smartphones has safeguarded that NFC is made available to growing number of users.

Market Scope

Solution Insights

In 2023, in terms of transaction value, the payment terminal solution gathered more than 40% of the total contactless payments market share. Furthermore, clients are mostly worried about safe keeping surrounding contactless payments due to frequent concern of fraud. Businesses are taking efforts to meet such concerns by offering secure payment systems that are authenticated via passcodes. The modern technological progressions have led to the innovation of novel ways of authentication including fingerprint validation for contactless payments. Further, security and fraud management market segment is anticipated to grow at a CAGR of over 20% during years to come.

Application Insights

Among different application sectors assessed in this report, in 2023, retail application segment dominated the global contactless payment market and garnered more than 60% of the market share. This growth is credited to upsurge in the number of ‘tap-and-go’ transactions across the world. The tap-and-go feature prompts the check-out process and thereby making contactless payments preferable choice customers in established and evolving nations.

Moreover, contactless payments also employed in service businesses such as gas stations, movie theaters, convenience stores, and restaurants, thus heightening the payments in the retail segment.

Device Insights

Among several devices, the smartphones & wearables market segment occupied about 60% share of the total market in 2023 in terms of the transaction value. Since last few years, usage of smartphones has extremely increased in day-to-day activities. For occurrence, persons now preferably utilize smartphones to make payments at stores.

Furthermore, revolutions in wearables like payment rings and bands are projected to stimulate the market demand over the estimate period. Additionally, smart cards are anticipated to gain noteworthy share in the global market due to its easier practice than PIN-based Euro Mastercard Visa cards.

Contactless Payment Market Companies

• Verifone
• Ingenico Group SA
• Gemalto
• Visa Inc.
• Giesecke & Devrient GmbH
• Heartland Payment Systems, Inc.
• Thales Group
• Wirecard AG
• On Track Innovations Ltd.
• IDEMIA

Segments Covered in the Report

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 Regional

• North America
  • U.S.
  • Canada
• Europe
  • U.K.
  • Germany
  • France
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
• Middle East & Africa
• Latin America