Contactless Payment Terminals Market - Growth, Trends, and Forecast (2020 - 2025)
The global contactless payment terminals market was valued at USD 13.23 billion in 2019 and is expected to reach USD 51.07 billion by the end of 2025, growing at a CAGR of 25.86% during the forecast year (2020 - 2025). Due to the rising need for cashless payments and ease of transactions, contactless payments have gained prominence, in the payment technologies market. There has been a rapid rise in cashless transactions, over the past few years.
- The pace with which the payments can be processed is making contactless payment lucrative for businesses and the faster checkout times, along with the ease of payments, are making users upgrade their cards to contactless ones.
- Contactless payments with a contactless card, payment-enabled mobile, or wearable device at a contactless-enabled checkout terminal, are witnessing increasing adoption.
- While increasing internet penetration is driving the growth of the contactless payment terminals market, concerns over the security of information that is visible through such terminals is set to hinder the growth to some extent.
Scope of the Report
Contactless payment systems are credit card, debit cards, smart cards or other devices, including smartphones and other mobile devices that uses radio-frequency identification (RFID) or near field communication (NFC, e.g Google Pay, Apple Pay, Fitbit Pay, Merpay or any bank mobile application that support Contactless) for making secure payments. Contactless Payment can be made with different technologies like Bluetooth, NFC, RFID which can be used for payment modes with various device like PoS, MPoS, etc across different industries.
Key Market Trends
Increasing Internet Penetration to Drive the Contactless Payment Terminals Market
- The growth of the contactless payment terminals market will be driven by internet penetration as a strong internet connection is the backbone of this payment method.
- The number of internet users in 2018 reached more than 4 billion, depicting a 7% year-on-year growth rate.
- Moreover, with increasing digitization and smart cities, people will be more inclined towards contactless payment methods as they offer convenience and quicker checkout time.
- Also, smartphone manufacturers are coming out with contactless payment methods such as Samsung Pay. All this will aid the contactless payment terminals market to grow.
- Moreover, North America has the highest internet penetration rate followed by Europe, Australia, Latin America. The world average of internet penetration rate is 56.80 %. With increasing penetration level of the internet, people are adapting themselves to new technology and they are becoming more technology oriented. This boost the contactless payment market.
- Applications like Google Pay, Apple Pay, Samsung Pay & many more are driving the market by providing easy to use, one tap money transfer, rewards and lot of other perks.
Europe to Have Largest Share in the Contactless Payment Terminals Market
- Owing to increasing smart card rollouts and technological advancements, Europe is expected to lead the market with the largest share.
- According to the Electronic Transactions Association (ETA), contactless payments on the Mastercard and Maestro networks grew by 145% in Europe, in 2018. Growth in contactless payments was robust across multiple countries in Europe, thus driving interest in wearable payments.
- According to UK Finance, there were 1.6 billion debit and credit card transactions in the UK. Nearly a third of all card transactions in the UK were made using contactless cards. There were 642 million contactless card transactions in January 2019, a 19.5 percent increase from 537 million a year earlier.
- Moreover, banks are integrating with mobile payment apps in the European region, owing to the increasing adoption of smartphones. For instance, Apple is integrating with Monzo.
The contactless payment terminals market is consolidated due to few players are having the major share of the market. Moreover, due to the lack of awareness of consumer towards contactless cards and concern over the security issue is making the market tough to enter for new players. Some of the key players in the market are Gemalto NV (Thales Group), OTI, VeriFone Systems Inc., Hewlett Packard, Ingenico Group SA, among others.
- April 2019 - OTI, a global provider of near field communication (NFC) and cashless payment solutions, announced that it had received a significant order for more than 6,000 advanced payment systems for use in Russian rail ticketing systems.
- April 2019 - Hewlett Packard Enterprise (HPE) worked alongside Saudi Payments to provide an agile infrastructure to enable contactless (NFC) payments by mobile. The solution, built on HPE Synergy and using HPE 3PAR and HPE Synergy Image Streamer, provides an agile infrastructure, the highest levels of application performance and the fastest provisioning process, whilst meeting anticipated compliance standards.
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