Digital Inclination of Consumers to Increase Uptake of Contactless Payment Transaction

Digital Inclination of Consumers to Increase Uptake of Contactless Payment Transaction

Contactless Payment Transaction

Contactless payment is progressively becoming a devoted part of the disbursement process across numerous industries. Consumers as well as businesses are gradually espousing a wide range of safe and highly convenient ways of paying off for the purchases being made through several contactless methods such as dedicated contactless applications in mobile using RFID or NFC technologies, contactless wearable equipment, and contactless card. The extensive rise in the global transportation and retail industries in the last couple of years and backed by the need for enhanced customer service along with better delivery models, has boosted the growth of the global contactless payment transactions market and is yet to support it in the years ahead. The advancements in digital technology and its infrastructure reaching heights of advancements, the demand for contactless payment transaction is anticipated to intensify in the coming years.

The global market for contactless payment transactions market is likely to rise at an outstanding CAGR of 55.5% between 2017 and 2025. In 2015, the market was valued at US$11.44 bn and is likely to stand at US$801.44 bn by the end of 2025.

How is the use of contactless payments likely to increase in the near future?

Some of the prime factors that are expected to have a massive impact on the growth of the market are the growing need for convenient and fast methods for completing transactions, mainly in retail and transport sectors and the growing employment of smartphones and tablets for payments. Lately, businesses and organizations have started steadily understanding the benefits of employing contactless payment transactions in the form of advanced counter sales procedures and a huge growth in the number of transactions that is possible in the entire day. This has further encourages organizations across several industries such as healthcare, entertainment and media, and hospitality to employ contactless payment transactions.

Which mode of contactless payment transaction is likely to be the most popular one in the years ahead?

On the basis of mode of payment, the market has been segmented into contactless mobile payments, wearable devices, and contactless cards. Amongst these, contactless cards emerged dominant in 2016 and is expected to rule in the coming years owing to the convenience involved with it.

Which regions are likely to be the core focus of market players?

Region-wise, Europe is expected to be the leader in the market of contactless payment transactions with the number of contactless payments rising and the high adoption rate of NFC based wearable smart consumer electronics and devices. North America is also expected shoot up the charts with leading companies launching new products there. Recently, Android Pay was launched in Canada with services offered by Interac, Mastercard, and Visa.