The contactless payment market is expected to grow from USD 6.70 Billion in 2016 to USD 17.56 Billion by 2021, at a Compound Annual Growth Rate (CAGR) of 21.2%, according to new MarketsandMarkets research.
The major drivers of this market include reduction in queuing and transaction time, increased convenience in making low value payments, ease of technology integration with existing cards, increased average transaction value, better customer insights, improved service delivery, and increased revenue opportunity.
Multi-channel payment and value-added services
The contactless payment market has been segmented into solutions, services, payment mode, and verticals. Mobile handsets as payment mode and healthcare segments are projected to grow at a high growth rate; hence, will present good market opportunities during the forecast period. Multi-channel payment and value-added services hold a major share in the contactless payment services segment.
The increasing integration of contactless payment technologies in different industries is considered as the primary driver influencing the growth of the contactless payment services market.
Mobile handsets payment mode
Contactless smart cards command the major share in the contactless payment modes. However, mobile handsets are fast picking up as the most preferred mode of payment in the developing countries of the world as these are more secure and convenient for the customers to make their payments.
Europe contributes maximum market share
Europe is expected to hold the largest market share and dominate the contactless payment market in 2016 due to technological advancement and increasing contactless smart card roll-outs in this region.
From 2016 to 2021, APAC is estimated to grow at the highest rate during this forecast period and is becoming a new hotspot for contactless payment vendors as a revenue generating region.
North America is expected to be another revenue generating market, with solution market as the leading revenue generating segment. This growth is driven by increasing adoption of cloud-based contactless technology solutions in the region.
The major vendors covered in the contactless payment market for the study include Gemalto N.V., Giesecke & Devrient GmbH, Ingenico Group, VeriFone Systems Inc., Wirecard AG, Heartland Payment Systems Inc., INSIDE Secure, OTI, Oberthur Technologies SA, and Proxama PLC.