Contactless payment, also called as a tap-and-go system is a secure mode where the transactions are done using technologies such as NFC (near field communication), RFID (radio frequency identification), infrared, and bluetooth. Contactless payment is hassle-free and convenient for customers as it takes only one-tenth of the time taken by the old-style electronic transaction.Contactless payment is becoming popular owing to its benefits such as secure and fast payments without any need for cash or identifying details. Initially, these type of payments or cards were used for the purpose oftravelling tickets only. But today, this technology has evolved and is helping customers to make payments for almost anything. However, the permissible amount for a contactless payment varies by country and by the bank.
Recent Developments in the Contactless Payment Industry
As per a Research Dive blog, the digital economy has shown a major influence on the world’s trajectory coupled with the societal well-being of common citizens. The extensive evolution of the digital economy and the demand for digital platforms of the economy is mainly driven by its ability to collect, use and analyze huge amounts of machine-readable information. Also, as the technology is advancing, the top gaining players of the global contactless payment industry are coming up with new strategies and products to strengthen the position of the market.
For instance,in 2016, an NFC-only debit card was launched byErste Group in Austria. The debit card can be used at any NFC supporting terminal and there is no limit for the transactions to be carried out. However, for transactions over a certain limit requires a PIN to confirm the transaction.
In February 2019, a global leader in payments technology, Visa, launched brand new campaign namely ‘Tap to pay with Visa. Just like that.’The aim of the company behind this campaign is to promote contactless payments in India. The campaign showcases the simplicity of using contactless payment Visa card and focuses on how the universal behavior of tapping is becoming a common payment method.
In October 2019, a French-based firm, Idemia acquired X-Core Technologies’ associated patents and metal card business. The focus of Idemia is to supplement its existing product line with the cards that are
suitable for contactless payments.
As part of the COVID-19 outbreak, various banks all across the globe have raised the limits for contactless payment.
Forecast Analysis of Contactless Payment Market
Global contactless payment market is estimated to experience a progressive growth during the forecast period. The extensive rise of smartphone ubiquity, smart watch, contactless credit/debit cards, and Samsung, Apple, & Google Pay enabled on almost every device is creating huge growth opportunities in the global market. Increasing trend towards digitalization and consumer preference for innovative payment procedures is also predicted to drive the market growth from 2019 to 2026. However, high costs of deployment and risk of contactless card stolen or lost is restricting the growth of contactless payment market.
Rising acceptance of and increasing demand from consumers are significant factors giving significantraise to the growth of the global market in the coming future. As per Research Dive report statistics, the contactless payment market is expected to reach up to $20,340.3 million by 2026. Geographically, the Europe region is likely to dominate the industry mainly because of the rising support for contactless payments, mobile payments, and digital wallets in major countries of this region. In addition, the report profiles key players functioning in the global market who are concentrating more on new product launches, strategic alliance, and tie-ups to maintain a strong position in the global industry.