Contactless Payment Market is to Touch $137.6 Billion by 2030; driven by the increasing adoption of digital payment solutions across various sectors, including retail, healthcare, and transportation.

The Contactless Payment Market size is estimated to reach $137.6 billion by 2030, growing at a CAGR of 18.7% during the forecast period 2024-2030, according to a recent report published by IndustryARC, titled, “Contactless Payment Market - By Technology: (NFC (Near Field Communication) Technology, RFID (Radio Frequency Identification) Technology, IR (Infrared) Technology, Others.) By Operational Frequency: (Low Frequency, High Frequency, Ultra High Frequency),By Devices: (Plastic Cards, Stickers, Key Fobs, Watch and Wrist Band, Car Tag, Mobile Phones, Others.), By Transaction Models: (Speedpass, E-Z Pass, Track 1 and Track 2 Data, EMV Card, Offline Stored Value Card), By Industries: Government, BFSI, Telecommunication & IT, Transportation & Logistics, Energy & Utilities, Healthcare, Retail, Hospitality, Others.), By Geography - Global Opportunity Analysis & Industry Forecast, 2024-2030”. The increasing adoption of contactless payment technologies across various industries, including retail, transportation, and healthcare, combined with their integration into smart and digital payment ecosystems, is driving significant growth in the contactless payment market.

North America and Europe dominated the market in 2023, owing to the high penetration of smartphones and advancements in smart chip technology. In addition to this increasing adoption rate, regulatory initiatives such as Euro Mastercard Visa (EMV), and the adoption of Near Field communication technology is enhancing the market growth in this region. According to Europe Central Bank 53.8% of all card-based payments in the euro area were contactless in the second half of 2022. In 13 of the then 19-euro area countries. Similarly, according to UK Finance, In October 2023, with 2.14 billion debit and credit card transactions recorded, contactless payments dominated in the UK, representing 63% of credit card transactions and 76% of debit card transactions. Moreover, banks are integrating with mobile payment apps in the European region, owing to the increasing adoption of smartphones.

The retail and transportation sectors are experiencing a significant surge in the adoption of contactless payment technologies. Retailers are increasingly integrating contactless payment options to meet consumer demand for faster, more secure transactions. Similarly, transportation systems worldwide are adopting contactless payments for fare collection, enhancing convenience for commuters and reducing physical touchpoints. The trend is driven by the need for efficient, hygienic payment methods, particularly in the wake of the COVID-19 pandemic, which has accelerated the shift toward digital and contactless solutions. Innovations in payment terminals and mobile wallets are further fueling this growth, making contactless payments an integral part of modern consumer experiences.

Technological advancements are significantly enhancing the security and efficiency of contactless payments. The introduction of biometric authentication, such as fingerprint and facial recognition, is improving transaction security and reducing fraud risks. Additionally, advancements in Near Field Communication (NFC) and Radio Frequency Identification (RFID) technologies are increasing transaction speed and reliability. These innovations are addressing concerns about security and usability, making contactless payments more appealing to both consumers and businesses. As technology continues to evolve, we can expect further enhancements in payment security features and transaction efficiency, driving wider adoption and integration of contactless payment solutions. 

Key companies profiled in the Contactless Payment Market are BASF SE, The Dow Chemical Company, Kemira Oyj and others.