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Contactless Payment Market, by Device Type

RA00181

Contactless Payment Market, by Device Type (NFC Chips, Mobile Handsets, Smart Cards, Point of Sale Terminals, Others), by Industry Verticals (Government, Transportation, Retail, IT & Telecom, Hospitality, BFSI, Others),Regional Analysis (North America, Europe, Asia Pacific, LAMEA): Global Opportunity Analysis and Industry Forecast, 2019–2026

RA00181

Pages: 125

Apr 2020

COVID-19

pandemic has shown to have an enormous impact on most
industries.

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Impact of covid-19 on Contactless Payment Market

Global Contactless Payment Industry Insights, 2026:

The global contactless payment market forecastsa revenue generation of $20,340.3 million by 2026,increasing from $8,700.0 million in 2018 at asignificant CAGR of 11.2%.Europe contactless payment market is projected to rise at a noteworthy CAGR of 11.7% by registeringa revenue of $6,305.5 million, throughout the analysis period. Strategic tie-up scoupled with the strong presence of smartphone manufacturers in this region are expected to accelerate the Europe market growth.

A contactless payment, also known as a tap-and-go system, is a secure method for a buyer to purchase products or services by using RFID (radio-frequency identification) technology or NFC (near-field communication). Contactless payment is an easy and convenient alternative of cash payment in which the customer can make payments using chip cards such as debit, credit, or smartcard. Contactless payments do not need a PIN (personal identification number) or signature.However, the allowable amount for a contactless payment varies by bank and by the country. 

Drivers: The acceptance and demand for contactless payments worldwide is anticipated to drive the global contactless payment market

Contactless transactions are the most popular method of paying across the world. This is because they offer more convenient and faster processing,especially foran urban lifestyle. This may lead to accelerate the growth of the contactless payment market, over the forecast period. Moreover,the tremendously increasing digitalization and consumer preference for innovative payment procedures, like smartphone payment, are one of the significant factors for the boost of the contactless payment market. Further more, this technology also provides key benefits such as cryptography security features, biometric authentication, virtual card provisioning, and remote deactivation. These key factors are anticipated to drive the demand for contactless payment market, across the globe, during the forecast period.  

Market Restraint: Higher cost of deployment of contactless payment technology is expected to obstruct the global contactless payments industry growth 

The risk of lost or stolen contactless cards can be higher. Also, the high cost associated with the deployment of contactless payment technology is the major restraining factor for the contactless payment market.
Investment Opportunities: Dramatic innovations in digital economy platformareanticipated to create vast opportunities in the Global Contactless Digital Payment Market

The extensive evolution of digital economy is one of the major factors that is anticipated to generate a noticeable revenue in the global market. 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.The meteoric rise of internet shoppingis one of the key factors for the growing demand forthe digital economy platform. The digital economy has showna major influence on the world’s trajectory coupled with the societal well-being of ordinary citizens. Moreover, the extensive rise of smartwatches, smartphone ubiquity, contactless debit/credit cards, Apple, Google, and Samsung Pay enabled on almost every device has made cashless payment easier. This advancement in digital economy services may create huge opportunities for the growth of the contactless payment market, during the forecast period.

The global mobile handsets segment shall have the largest market share in the global market and it is expected to surpass $5,288.5 million by 2026, increasing from $2,175.0 million in 2018. Smartphone contactless payments play a key role in the financial institutions along with providing an additional way for transactions which help to maintain the current ecosystem. Moreover, it also helps to protect customer data, especially in the retail sector. Furthermore, the higher speed of contactless transactions, extensively increasing disposable incomes and personalized experiences, availability of loyalty schemes for potential consumers are some of the driving factors for the growth of this segment.

The BFSI (banking, financial services, and insurance) segment will have the largest market share and it is projected to surpass $3,376.5 million, over the forecast period. A surge in contactless cards and innovative and secure technology platforms are anticipated to drive the growth of this market in the BFSI segment. Also, increasing adoption of break through technologies such as HCE (host card emulation), which enables banks to generate their mobile wallet, allow their clients to store multiple cards on their mobile phones to perform secure contactless transactions. Moreover, this platform offers efficient and instant insurance services to facilitate the convenient delivery of debit cards to their client.

The retail segment for the contactless payment market shall have significant market share in the global market and it is expected to generate a revenue of$4,088.4 million during the forecast period.Extensive growth in urbanization and income of people, favorable government policies, and technological advancement in this platform are also anticipated to drive the growth of this segment. Moreover, e-commercegiants such as Amazon.com Inc.are also focusing on this platform. For instance, this company is planning to pilot contactless payments to foster the adoption of its Amazon Pay payment processing service. These key factors may lead to boost the growth of this segment.

Europe’scontactless payment market generated a revenue of $2,610.0 million in 2018 and it is projectedto grow at a healthy rate of 11.7%, generating a revenue of $6,305.5 million, during the forecast period.This is mainly because of the rising support for contactless payments, mobile payments, and digital wallets mainly in European countries such as France, UK, and Italy. For instance, as per UK Finance data, there were around 13.2 billion debit card payments done in the year 2017. Moreover, the rising adoption of smartphones along with the evolutionary surge in mobile payments is one of the driving factors for the growth of the contactless payment market. For example,as per the publication of GSMA, in the European region, smartphone adoption was around 76% at the year-end of 2019.

North America Contactless Payment Market Overview, 2026:

North America contactless payment market had the highest market share and it has registered a revenue of $3,045.5 million in 2018 and it is projected to register a revenue of $6,712.3 million, over the forecast period. This is mainly because of increasing strategic collaborations such as tie-ups and partnerships in this region. Moreover, technologically advanced mobile payments, rising acceptance for NFC and QR/ barcode, and growing demand of smartphones are some of the driving elements for the growth of this regional market.

Leading contactless payment market players areIngenico Group., VERIMATRIX, VeriFone, Inc., Paycor, Inc, On Track Innovations LTD., Castles Technology, SumUp Inc., Alcineo, C.Bitel., and Infineon Technologies AG.Contactless payment global leaders are emphasizing highly on strategic alliances and tie-ups, advanced product developments.These are the frequent strategies followed by established organizations.

Porter’s Five Forces Analysis for Contactless Payment Market:

  • Bargaining Power of Suppliers:Suppliers of this market are focusing mainly on novel technologies such as Blockchain; it offers significance over traditional banking transactions and customer convenience. This may provide HIGH bargaining power to the suppliers.

  • Bargaining Power of Buyer:Buyers have high negotiation power, mainlydue to the major variety of contactless payments platforms, in the global market. Moreover, clients have more bargaining power due to low switching costs via digital channels, instant access to information, access to substitute products and services with greater ease of use and convenience, insights from social media, price sensitivity, and risen industry competitiveness. Thus, the suppliers' bargaining power is VERY STRONG.

  • Threat of New Entrants: In recent days, the emerging startups are highly equipped with value propositions and the newest digital-based business models. Moreover, low switching costs and increasing research on unique software product by emerging companies gives significance to the new entrants.Thus, the threat of new entrants is HIGH.

  • Threat of Substitutes: There is no substitute for the contactless payment platform so far.Moreover, the contactless payment system is more significant over the traditional alternatives system. Thus, the threat of substitutes is VERY LOW.

  • Competitive Rivalry in the Market: Ahigh number of platforms,across the globe and global leaders are emphasizing effectively on low-cost digital business models, customer convenience, and comparable administrations. Competitive Rivalry in the Market is HIGH.

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FREQUENTLY ASKED QUESTIONS?
 

A. The global contactless payment marketsize was over $8,700million in 2018 and is projected to reach $20,340.3million by 2026.

A. Ingenico Group., VERIMATRIX, and VeriFone, Inc.are some of the key players in the global contactless payments Market.

A. The Europe region possesses great investment opportunities for the investors to witness the most promising growth in the future.

A. The Europe market contactless payments Market is anticipated to grow at 11.7% CAGR during the forecast period.

A. The Europe market contactless payments Market is anticipated to grow at 11.7% CAGR during the forecast period.

A. The Europe market contactless payments Market is anticipated to grow at 11.7% CAGR during the forecast period.

A. Technological advancements, product development, along with joint ventures are the key strategies opted by the operating companies in this market.

A. Technological advancements, product development, along with joint ventures are the key strategies opted by the operating companies in this market.

A. Technological advancements, product development, along with joint ventures are the key strategies opted by the operating companies in this market.

A. Technological advancements, product development, along with joint ventures are the key strategies opted by the operating companies in this market.

A. On Track Innovations and LTD.Paycor, Inc Companyare investing more on R&D activities for developing new products and technologies

1.Research Methodology

1.1.Desk Research
1.2.Real time insights and validation
1.3.Forecast model
1.4.Assumptions and forecast parameters

1.4.1.Assumptions
1.4.2.Forecast parameters

1.5.Data sources

1.5.1.Primary
1.5.2.Secondary

2.Executive Summary

2.1.360° summary
2.2.By Device Type Trends
2.3.By Industry VerticalTrends

3.Market overview

3.1.Market segmentation & definitions
3.2.Key takeaways

3.2.1.Top investment pockets
3.2.2.Top winning strategies

3.3.Porter’s five forces analysis

3.3.1.Bargaining power of consumers
3.3.2.Bargaining power of suppliers
3.3.3.Threat of new entrants
3.3.4.Threat of substitutes
3.3.5.Competitive rivalry in the market

3.4.Market dynamics

3.4.1.Drivers
3.4.2.Restraints
3.4.3.Opportunities

3.5.Technology landscape
3.6.Regulatory landscape
3.7.Patent landscape
3.8.Market value chain analysis
3.9.Strategic overview

4.Contactless Payment Market, by Device Type

4.1.NFC Chips

4.1.1.Market size and forecast, by region, 2018-2026
4.1.2.Comparative market share analysis, 2018 & 2026

4.2.Mobile Handsets

4.2.1.Market size and forecast, by region, 2018-2026
4.2.2.Comparative market share analysis, 2018 & 2026

4.3.Smart Cards

4.3.1.Market size and forecast, by region, 2018-2026
4.3.2.Comparative market share analysis, 2018 & 2026

4.4.Point of Sale Terminals

4.4.1.Market size and forecast, by region, 2018-2026
4.4.2.Comparative market share analysis, 2018 & 2026

4.5.Others

4.5.1.Market size and forecast, by region, 2018-2026
4.5.2.Comparative market share analysis, 2018 & 2026

5.Contactless Payment Market, by Industry Vertical

5.1.Government

5.1.1.Market size and forecast, by region, 2018-2026
5.1.2.Comparative market share analysis, 2018 & 2026

5.2.Transportation

5.2.1.Market size and forecast, by region, 2018-2026
5.2.2.Comparative market share analysis, 2018 & 2026

5.3.Retail

5.3.1.Market size and forecast, by region, 2018-2026
5.3.2.Comparative market share analysis, 2018 & 2026

5.4.InfrastructureIT & Telecom

5.4.1.Market size and forecast, by region, 2018-2026
5.4.2.Comparative market share analysis, 2018 & 2026

5.5.Hospitality

5.5.1.Market size and forecast, by region, 2018-2026
5.5.2.Comparative market share analysis, 2018 & 2026

5.6.BFSI

5.6.1.Market size and forecast, by region, 2018-2026
5.6.2.Comparative market share analysis, 2018 & 2026

5.7.Others

5.7.1.Market size and forecast, by region, 2018-2026
5.7.2.Comparative market share analysis, 2018 & 2026

6.Contactless Payment Market, by region

6.1.North America

6.1.1.Market size and forecast, by device type, 2018-2026
6.1.2.Market size and forecast, by industry vertical, 2018-2026
6.1.3.Market size and forecast, by country, 2018-2026
6.1.4.Comparative market share analysis, 2018 & 2026
6.1.5.U.S.

6.1.5.1.Market size and forecast, by device type, 2018-2026
6.1.5.2.Market size and forecast, by industry vertical, 2018-2026
6.1.5.3.Comparative market share analysis, 2018 & 2026

6.1.6.Canada

6.1.6.1.Market size and forecast, by device type, 2018-2026
6.1.6.2.Market size and forecast, by industry vertical, 2018-2026
6.1.6.3.Comparative market share analysis, 2018 & 2026

6.1.7.Mexico

6.1.7.1.Market size and forecast, by device type, 2018-2026
6.1.7.2.Market size and forecast, by industry vertical, 2018-2026
6.1.7.3.Comparative market share analysis, 2018 & 2026

6.2.Europe

6.2.1.Market size and forecast, by device type, 2018-2026
6.2.2.Market size and forecast, by industry vertical, 2018-2026
6.2.3.Market size and forecast, by country, 2018-2026
6.2.4.Comparative market share analysis, 2018 & 2026
6.2.5.Germany 

6.2.5.1.Market size and forecast, by device type, 2018-2026
6.2.5.2.Market size and forecast, by industry vertical, 2018-2026
6.2.5.3.Comparative market share analysis, 2018 & 2026

6.2.6.UK

6.2.6.1.Market size and forecast, by device type, 2018-2026
6.2.6.2.Market size and forecast, by industry vertical, 2018-2026
6.2.6.3.Comparative market share analysis, 2018 & 2026

6.2.7.France

6.2.7.1.Market size and forecast, by device type, 2018-2026
6.2.7.2.Market size and forecast, by industry vertical, 2018-2026
6.2.7.3.Comparative market share analysis, 2018 & 2026

6.2.8.Spain

6.2.8.1.Market size and forecast, by device type, 2018-2026
6.2.8.2.Market size and forecast, by industry vertical, 2018-2026
6.2.8.3.Comparative market share analysis, 2018 & 2026

6.2.9.Italy 

6.2.9.1.Market size and forecast, by device type, 2018-2026
6.2.9.2.Market size and forecast, by industry vertical, 2018-2026
6.2.9.3.Comparative market share analysis, 2018 & 2026

6.2.10.Rest of Europe

6.2.10.1.Market size and forecast, by device type, 2018-2026
6.2.10.2.Market size and forecast, by industry vertical, 2018-2026
6.2.10.3.Comparative market share analysis, 2018 & 2026

6.3.Asia Pacific

6.3.1.Market size and forecast, by device type, 2018-2026
6.3.2.Market size and forecast, by industry vertical, 2018-2026
6.3.3.Market size and forecast, by country, 2018-2026
6.3.4.Comparative market share analysis, 2018 & 2026
6.3.5.China

6.3.5.1.Market size and forecast, by device type, 2018-2026
6.3.5.2.Market size and forecast, by industry vertical, 2018-2026
6.3.5.3.Comparative market share analysis, 2018 & 2026

6.3.6.India 

6.3.6.1.Market size and forecast, by device type, 2018-2026
6.3.6.2.Market size and forecast, by industry vertical, 2018-2026
6.3.6.3.Comparative market share analysis, 2018 & 2026

6.3.7.Australia 

6.3.7.1.Market size and forecast, by device type, 2018-2026
6.3.7.2.Market size and forecast, by industry vertical, 2018-2026
6.3.7.3.Comparative market share analysis, 2018 & 2026

6.3.8.Rest of Asia Pacific

6.3.8.1.Market size and forecast, by device type, 2018-2026
6.3.8.2.Market size and forecast, by industry vertical, 2018-2026
6.3.8.3.Comparative market share analysis, 2018 & 2026

6.4.LAMEA

6.4.1.Market size and forecast, by device type, 2018-2026
6.4.2.Market size and forecast, by industry vertical, 2018-2026
6.4.3.Market size and forecast, by country, 2018-2026
6.4.4.Comparative market share analysis, 2018 & 2026
6.4.5.Latin America 

6.4.5.1.Market size and forecast, by device type, 2018-2026
6.4.5.2.Market size and forecast, by industry vertical, 2018-2026
6.4.5.3.Comparative market share analysis, 2018 & 2026

6.4.6.Middle East 

6.4.6.1.Market size and forecast, by device type, 2018-2026
6.4.6.2.Market size and forecast, by industry vertical, 2018-2026
6.4.6.3.Comparative market share analysis, 2018 & 2026

6.4.7.Africa

6.4.7.1.Market size and forecast, by device type, 2018-2026
6.4.7.2.Market size and forecast, by industry vertical, 2018-2026
6.4.7.3.Comparative market share analysis, 2018 & 2026

7.Company profiles

7.1.Ingenico Group.
7.1.1.Business overview
7.1.2.Financial performance
7.1.3.Product portfolio
7.1.4.Recent strategic moves & developments
7.1.5.SWOT analysis

7.2.VERIMATRIX

7.2.1.Business overview
7.2.2.Financial performance
7.2.3.Product portfolio
7.2.4.Recent strategic moves & developments
7.2.5.SWOT analysis

7.3.VeriFone, Inc.

7.3.1.Business overview
7.3.2.Financial performance
7.3.3.Product portfolio
7.3.4.Recent strategic moves & developments
7.3.5.SWOT analysis

7.4.Paycor, Inc

7.4.1.Business overview
7.4.2.Financial performance
7.4.3.Product portfolio
7.4.4.Recent strategic moves & developments
7.4.5.SWOT analysis

7.5.On Track Innovations LTD.

7.5.1.Business overview
7.5.2.Financial performance
7.5.3.Product portfolio
7.5.4.Recent strategic moves & developments
7.5.5.SWOT analysis

7.6.Castles Technology

7.6.1.Business overview
7.6.2.Financial performance
7.6.3.Product portfolio
7.6.4.Recent strategic moves & developments
7.6.5.SWOT analysis

7.7.SumUp Inc.

7.7.1.Business overview
7.7.2.Financial performance
7.7.3.Product portfolio
7.7.4.Recent strategic moves & developments
7.7.5.SWOT analysis

7.8.Alcineo

7.8.1.Business overview
7.8.2.Financial performance
7.8.3.Product portfolio
7.8.4.Recent strategic moves & developments
7.8.5.SWOT analysis

7.9.C.Bitel.

7.9.1.Business overview
7.9.2.Financial performance
7.9.3.Product portfolio
7.9.4.Recent strategic moves & developments
7.9.5.SWOT analysis

7.10.Infineon Technologies AG

7.10.1.Business overview
7.10.2.Financial performance
7.10.3.Product portfolio
7.10.4.Recent strategic moves & developments
7.10.5.SWOT analysis

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.
 

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