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Contactless Payment Market Research Report By Technology (NFC, RFID, QR Code, HCE, Magnetic Secure Transmission), By Payment Mode (Mobile Wallets, Contactless Cards, Wearables, Smartphones, IoT Devices), By End Use (Retail, Transportation, Healthcare, Hospitality, E-commerce), By Transaction Type (In-Store Transactions, Remote Transactions, Peer-to-Peer Transactions, Bill Payments) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa)- Forecast to 2035


ID: MRFR/ICT/8080-HCR | 200 Pages | Author: Aarti Dhapte| April 2025

Contactless Payment Market Overview


As per MRFR analysis, the Contactless Payment Market Size was estimated at 22.99 (USD Billion) in 2024.The Contactless Payment Market Industry is expected to grow from 26.88(USD Billion) in 2025 to 150 (USD Billion) by 2035. The Contactless Payment Market CAGR (growth rate) is expected to be around 16.92% during the forecast period (2025 - 2035).


Key Contactless Payment Market Trends Highlighted


The Global Contactless Payment Market is experiencing significant growth driven by the increasing adoption of mobile and digital wallets. Consumers worldwide are seeking fast and secure payment methods, which contactless technologies provide. This shift is further fueled by the rise in smartphone penetration and advancements in near-field communication (NFC) technology. Many governments globally, recognizing the benefits of cashless transactions, are supporting initiatives to develop payment infrastructure. As a result, there has been a push towards financial inclusion, particularly in developing regions where traditional banking may not be as accessible.


Opportunities to be explored in the Global Contactless Payment Market include the expansion of services in rural areas and the development of comprehensive loyalty programs integrated with contactless payments. Retailers and service providers can capture a larger customer base by offering seamless experiences at the point of sale. Additionally, the pandemic has accelerated the demand for hygienic payment solutions, presenting opportunities for growth in sectors such as food service, travel, and retail. 


Recent trends indicate a marked increase in partnerships between payment solution providers and businesses aiming to enhance the consumer experience.The integration of contactless payment systems with e-commerce platforms is also on the rise, reflecting a shift towards a hybrid approach to shopping. 


Furthermore, the emergence of wearables with payment capabilities highlights the evolving landscape of payment technologies. Governments and regulatory bodies are focusing on ensuring security and privacy in these transactions, which could lead to more innovations and trust in contactless systems.


Contactless Payment Market size


Source: Primary Research, Secondary Research, MRFR Database and Analyst Review


Contactless Payment Market Drivers


Increasing Adoption of Digital Wallets


The Global Contactless Payment Market Industry is experiencing significant growth due to the accelerating adoption of digital wallets among consumers. According to a report from the World Bank, 1.7 billion adults remain unbanked, which creates a substantial opportunity for mobile payment solutions and contactless payment options. Prominent organizations like PayPal and Google Pay are rapidly expanding their digital wallets, making them attractive payment alternatives.With the rise in smartphone penetration and the adoption of near-field communication (NFC) technologies, many consumers are now able to perform transactions seamlessly without needing cash or physical cards. 


As a result, leading companies are investing heavily in Research and Development mobile payment technologies, resulting in a projected increase in contactless transactions in developed regions by approximately 50% over the next five years alone.


Enhanced Security Features


As the Global Contactless Payment Market Industry expands, enhanced security features are becoming a critical driver of market growth. Contactless payment methods are now leveraging advanced security protocols, including encryption and tokenization, to safeguard consumer data. According to the Federal Trade Commission, there was a reported 29% decline in encryption-related fraud cases over the last two years due to these enhanced security measures.Prominent banking institutions like Visa and Mastercard are at the forefront, implementing these technologies and collaborating to establish secure payment networks. 


This increased security fosters consumer confidence, encouraging a shift from traditional payment methods to contactless solutions. As security threats evolve, continuous upgrades in security features will remain essential, promoting a safe and efficient environment for contactless transactions.


Growing Consumer Demand for Convenience


The demand for convenience among consumers is a significant driver propelling the Global Contactless Payment Market Industry forward. Consumers increasingly prefer quick and efficient payment methods, and contactless payments offer precisely that. According to a study by the National Retail Federation, 62% of consumers indicated that speed and convenience are primary factors influencing their payment method selection. Major retail chains such as Walmart and Starbucks have adopted contactless payments to improve the checkout experience, leading to higher customer satisfaction rates.


The ease of making payments without physical cash or cards not only reduces transaction times but also enhances overall customer experiences. As consumer lifestyles evolve, the trend towards convenience will undoubtedly drive the shift towards more extensive adoption of contactless payment systems in various sectors.


Contactless Payment Market Segment Insights


Contactless Payment Market Technology Insights


The Global Contactless Payment Market is poised for substantial growth in the Technology segment, with projections indicating a total market valuation of 26.88 USD Billion in 2024 and a remarkable increase to 150.0 USD Billion by 2035. A critical component of this market is the notable sub-category of Near Field Communication (NFC) technology, which is currently valued at 10.5 USD Billion in 2024 and is anticipated to escalate to 62.0 USD Billion by 2035, showcasing a significant dominance in the sector. NFC is integral for quick and secure transactions, enabling consumers to effortlessly make payments via smartphones and contactless cards, which is increasingly critical as businesses shift towards more digital payment solutions.


Similarly, Radio-Frequency Identification (RFID) technology is also making a substantial impact, with a valuation of 6.5 USD Billion in 2024, projected to expand to 38.0 USD Billion by 2035. RFID technology facilitates enhanced inventory management and supply chain logistics, thus driving operational efficiency in retail settings, which is particularly appealing as companies focus on automation and improved customer experience.


The QR Code segment, valued at 5.0 USD Billion in 2024 and set to rise to 30.0 USD Billion by 2035, further illustrates the technological advancements in contactless payment methods. QR Codes offer a unique and versatile payment option through mobile applications, allowing swift consumer transactions with minimal hardware requirements, which aids in their rapid adoption globally.Host Card Emulation (HCE) technology, although currently valued at 3.0 USD Billion in 2024, with projections of reaching 18.0 USD Billion by 2035, is gaining traction in the mobile payment landscape as it enables mobile devices to simulate a payment card securely. This technology enhances consumer flexibility and promotes the shift away from traditional plastic cards toward a more digitized payment ecosystem.


Finally, the Magnetic Secure Transmission segment is currently valued at 2.88 USD Billion in 2024 but indicates a decrease to 2.0 USD Billion by 2035, suggesting it faces challenges in competing against more advanced technologies. Despite its historical significance in point-of-sale transactions, the decline may reflect a market shift towards more secure and user-friendly options such as NFC and QR codes. Overall, the Global Contactless Payment Market showcases a robust trajectory, with significant contributions from each technology segment, driven by rising consumer preferences for swift and secure payment processes, unparalleled convenience, and the growing influence of smart devices in daily transactions. The collective performance of these technologies underscores the dynamic nature of the Global Contactless Payment Market and its transformative impact on the financial landscape, underpinned by ongoing digital innovation.


Contactless Payment Market size


Source: Primary Research, Secondary Research, MRFR Database and Analyst Review


Contactless Payment Market Payment Mode Insights


This segment has been driven by rapid technological advancements and increasing consumer adoption of contactless payment solutions. Notably, Mobile Wallets have garnered significant attention as they provide convenience and security for users by enabling seamless transactions via smartphones. Contactless Cards are also pivotal, offering fast payment alternatives that cater to both consumers and businesses, enhancing transaction speed.Wearables, such as smartwatches, are gaining popularity, allowing users to make payments on the go, which further supports the contactless trend. 


The integration of IoT Devices into the payment ecosystem represents a shift towards more connected payment solutions, facilitating transactions in retail and beyond. As consumers increasingly prioritize speed and security in their payment choices, these modes dominate the landscape of the Global Contactless Payment Market and present vast opportunities for growth. Market statistics suggest that ongoing innovations will continue to drive this segment, highlighting the importance of adapting to consumer preferences for contactless technologies.


Contactless Payment Market Use Insights


As of 2035, this market is expected to escalate to 150.0 USD Billion, showcasing a robust trajectory driven by consumer preference for speed and convenience in transactions. Among these segments, Retail plays a pivotal role as it embraces contactless technology to enhance customer experiences and streamline checkout processes. Transportation is also vital, quickly adapting to contactless solutions to improve operational efficiency and promote cashless travel.In the Healthcare sector, the integration of contactless payments is essential for ensuring patient safety and reducing wait times. Hospitality segments benefit greatly from contactless methods, as they improve service delivery by facilitating quick transactions and guest interactions. 


E-commerce continues to dominate the online shopping landscape, capitalizing on contactless payment systems to cater to the growing demand for efficient and secure online transactions. This diversity across end uses not only reflects the Global Contactless Payment Market revenue potential but also highlights the various opportunities for innovation and improvement within these sectors, driving overall market growth.


Contactless Payment Market Transaction Type Insights


This growth is fueled by the increasing adoption of digital payment solutions across various transaction types, which encompass In-Store Transactions, Remote Transactions, Peer-to-Peer Transactions, and Bill Payments. In-store transactions are becoming more prevalent as consumers prefer quick and efficient payment methods, allowing for seamless shopping experiences.Remote Transactions are also on the rise due to the growing trend of online shopping and service subscriptions, reflecting changing consumer behavior. Peer-to-peer transactions facilitate easy money transfers among individuals, promoting social and economic interactions. Additionally, Bill Payments through contactless methods offer convenience and speed, aligning with consumers' desire for efficient financial management. 


The Global Contactless Payment Market segmentation shows versatility across these transaction types, with In-Store and Remote Transactions currently dominating the landscape due to technological advancements and heightened consumer preferences for convenience, enhancing overall market growth.As cash usage declines, these transaction types present valuable opportunities for further innovation and development in the Global Contactless Payment Market industry.


Contactless Payment Market Regional Insights


The Global Contactless Payment Market is set for significant growth within this framework, regional insights reveal that North America leads the charge, boasting a valuation of 10.8 USD Billion in 2024, reflecting its advanced technological adoption and infrastructure, and is expected to reach 49.5 USD Billion by 2035. Europe follows closely, with market values of 7.2 USD Billion in 2024, attributed to increasing consumer preference for convenience and security, growing to 37.5 USD Billion by 2035.The APAC region, valued at 6.8 USD Billion in 2024, is experiencing rapid digital transformation and mobile payment acceptance, projecting a growth to 44.0 USD Billion by 2035. 


Meanwhile, South America holds a smaller share at 1.8 USD Billion in 2024, driven by growing urbanization and financial inclusion initiatives, increasing to 7.0 USD Billion by 2035. The Middle East and Africa (MEA) segment, though currently valued at 0.3 USD Billion in 2024, is emerging due to rising smartphone penetration and improving payment infrastructures, with an increase to 2.0 USD Billion expected by 2035.Each region's enhancement and adaptation to contactless payment technology outline the diverse dynamics and opportunities present in the Global Contactless Payment Market, emphasizing consumer behavior shifts toward seamless transactions in a digital age.


Contactless Payment Market Region


Source: Primary Research, Secondary Research, MRFR Database and Analyst Review


Contactless Payment Market Key Players and Competitive Insights


The Global Contactless Payment Market has seen a transformative rise in recent years, driven by the increasing preference for convenience and speed in financial transactions. This market comprises various stakeholders, including payment processors, technology providers, and financial institutions, all vying for a share in a rapidly evolving landscape. With advancements in technology and growing consumer adoption of smartphones and wearables, the competitive dynamics within this sector are continually changing. Companies are differentiating their offerings through innovative solutions, security features, and strategic partnerships, therefore leading to an increasingly competitive environment with the potential for substantial market growth. Market participants are not just focused on enhancing payment processes but also aligning with consumer trends regarding safety, efficiency, and user experience, which further intensifies competition and innovation across this space.


Verifone has established itself as a prominent player within the Global Contactless Payment Market by offering a wide range of payment solutions characterized by security and ease of use. Its strengths lie in robust technology that supports a multitude of payment methods, including NFC and mobile wallets, catering to businesses of all sizes. Verifone's global presence allows it to serve diverse markets while placing a strong emphasis on developing high-quality hardware and software that enhances transaction speed and reliability. Additionally, the company has differentiated itself through strategic alliances with leading financial institutions and merchants, enabling it to stay ahead of industry trends and consumer demands. By continuously innovating and improving its product offerings, Verifone has fortified its position as a trusted provider in the sphere of contactless payments, adapting to the evolving needs of the marketplace effectively.


FIS is another key player that significantly influences the Global Contactless Payment Market through its comprehensive suite of financial services and technology solutions. The company's offerings include payment processing, digital banking, and fraud management tools that empower businesses to optimize their payment systems. FIS has established a commendable market presence, focusing on streamlining and securing payment transactions through advanced technologies. The company's strengths include its extensive experience in the financial sector, a longstanding reputation for reliability, and a commitment to innovation, enabling it to deliver tailored solutions for a diverse clientele. 


Furthermore, FIS has pursued growth through strategic mergers and acquisitions, allowing it to enhance its capabilities and expand its reach within the global market. The key products and services offered by FIS cater specifically to meet the growing demand for contactless payment solutions, positioning the company favorably to capitalize on emerging trends while continuing to deliver value to its customers worldwide.


Key Companies in the Contactless Payment Market Include:



  • Verifone

  • FIS

  • NXP Semiconductors

  • Discover

  • PayPal

  • Ingenico

  • American Express

  • Google

  • Apple

  • Worldline

  • Samsung Electronics

  • Adyen

  • Square

  • Visa

  • Mastercard


Contactless Payment Market Industry Developments


The Global Contactless Payment Market has witnessed significant developments recently, particularly due to a surge in demand for convenient payment solutions amid the ongoing digital transformation. Companies like Verifone and Ingenico are continuously innovating their technologies, enhancing security measures and user experience. FIS and Mastercard have expanded their contactless services, while PayPal and Square are seeing increased adoption rates among consumers and merchants alike. Notably, Visa announced an initiative in September 2023 to increase contactless payment transaction limits in several countries, enhancing customer convenience.


Regarding mergers and acquisitions, NXP Semiconductors acquired a technology firm in August 2023, bolstering their contactless payment solutions portfolio. American Express partnered with Google in July 2023 to improve payment integrations across platforms. The valuation of companies in this market has also increased significantly due to the growing reliance on contactless transactions driven by health safety concerns during the pandemic. 


The market is expected to further expand as more businesses and consumers recognize the benefits of contactless payments. The last two to three years have seen a marked increase in both consumer uptake and technological advancements in this sector, indicative of an evolving landscape in payment processing.


Contactless Payment Market Segmentation Insights



  • Contactless Payment Market Technology Outlook

    • NFC

    • RFID

    • QR Code

    • HCE

    • Magnetic Secure Transmission



  • Contactless Payment Market Payment Mode Outlook

    • Mobile Wallets

    • Contactless Cards

    • Wearables

    • Smartphones

    • IoT Devices



  • Contactless Payment Market Use Outlook

    • Retail

    • Transportation

    • Healthcare

    • Hospitality

    • E-commerce



  • Contactless Payment Market Transaction Type Outlook

    • In-Store Transactions

    • Remote Transactions

    • Peer-to-Peer Transactions

    • Bill Payments



  • Contactless Payment Market Regional Outlook

    • North America

    • Europe

    • South America

    • Asia Pacific

    • Middle East and Africa



Report Attribute/Metric Source: Details
MARKET SIZE 2023 22.99(USD Billion)
MARKET SIZE 2024 26.88(USD Billion)
MARKET SIZE 2035 150.0(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR) 16.92% (2025 - 2035)
REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR 2024
MARKET FORECAST PERIOD 2025 - 2035
HISTORICAL DATA 2019 - 2024
MARKET FORECAST UNITS USD Billion
KEY COMPANIES PROFILED Verifone, FIS, NXP Semiconductors, Discover, PayPal, Ingenico, American Express, Google, Apple, Worldline, Samsung Electronics, Adyen, Square, Visa, Mastercard
SEGMENTS COVERED Technology, Payment Mode, End Use, Transaction Type, Regional
KEY MARKET OPPORTUNITIES Rapid adoption of mobile wallets, Expansion in emerging markets, Integration of IoT devices, Growth in e-commerce transactions, Increasing demand for contactless cards
KEY MARKET DYNAMICS increased smartphone penetration, growing consumer preference, enhanced security features, supportive government regulations, rising e-commerce transactions
COUNTRIES COVERED North America, Europe, APAC, South America, MEA


Frequently Asked Questions (FAQ) :

The Global Contactless Payment Market is expected to be valued at 26.88 USD Billion in 2024.

By 2035, the Global Contactless Payment Market is projected to reach a value of 150.0 USD Billion.

The Global Contactless Payment Market is expected to grow at a CAGR of 16.92% from 2025 to 2035.

In 2024, North America is expected to have the largest market share valued at 10.8 USD Billion.

The NFC technology segment is projected to reach a market size of 62.0 USD Billion by 2035.

Some of the major players in the Global Contactless Payment Market include companies like Visa and Mastercard.

The RFID technology segment is estimated to be valued at 6.5 USD Billion in 2024.

The QR Code technology segment is expected to grow to a market size of 30.0 USD Billion by 2035.

The Asia-Pacific region is expected to contribute 6.8 USD Billion to the market in 2024.

Challenges such as regulatory issues and security concerns may impact the future growth of the Global Contactless Payment Market.

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