Europe 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) andBy Regional (Germany, UK, France, Russia, Italy, Spain, Rest of Europe)- Forecast to 2035

Europe Contactless Payment Market Overview

As per MRFR analysis, the Europe Contactless Payment Market Size was estimated at 4.92 (USD Billion) in 2023. The Europe Contactless Payment Market Industry is expected to grow from 5.75(USD Billion) in 2024 to 37.5 (USD Billion) by 2035. The Europe Contactless Payment Market CAGR (growth rate) is expected to be around 18.586% during the forecast period (2025 - 2035)

Key Europe Contactless Payment Market Trends Highlighted

The Europe Contactless Payment Market is experiencing notable trends driven primarily by the shift toward digital transactions. One significant market driver is the increased adoption of contactless technologies among consumers and retailers. With many European countries focusing on enhancing payment infrastructure, contactless payments have become widely accepted at various retail locations, public transport, and online payment platforms. The Covid-19 pandemic accelerated this trend, as consumers preferred contactless options to minimize physical contact. Opportunities in this market are vast, particularly in enhancing services for small and medium-sized enterprises (SMEs) that have been slower to adopt contactless solutions.

By providing user-friendly payment systems tailored for SMEs, suppliers can tap into a growing segment that values convenience and accessibility. Additionally, governments in Europe have been actively promoting cashless economies, encouraging innovation and investment in contactless technology, which presents more avenues for development. Recent times have seen emerging technologies like mobile wallets and wearables enabling contactless transactions, making payments easier for users. The European Union also emphasizes secure transactions, leading to the integration of strong authentication methods in contactless payments, ensuring both convenience and security.

As mobile banking becomes more prevalent, aligning contactless payment solutions with customer needs is a key focus, pushing towards a seamless, integrated payment ecosystem. The ongoing push for sustainability in financing also affects consumer preferences, as businesses look to implement greener payment systems. Overall, the combination of these trends is reshaping the contactless payment landscape in Europe, marking a significant shift towards a more connected, digital economy.

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

Europe Contactless Payment Market Drivers

Growing Adoption of Contactless Payment Technology

The Europe Contactless Payment Market Industry has grown tremendously as a result of the continent's rapid adoption of contactless payment technology. The expanded use of Near Field Communication (NFC) technology in smartphones and payment terminals is primarily responsible for this surge. In 2021, contactless payments accounted for over 41% of all card payments in Europe, a sharp increase from 30% the year before, according to the European Payments Council.

Established payment service providers such as Mastercard and Visa have actively promoted contactless payment solutions, thereby enhancing consumer convenience and encouraging the widespread use of mobile wallets. Given the upward trend, projections suggest that contactless payments could account for over 60% of card payments in Europe by 2025. This trend is further fueled by the rising demand for speed and efficiency in payment processing, especially in urban areas where the population favors quick transactions.As consumers increasingly seek touch-free solutions amid health concerns stemming from events like the COVID-19 pandemic, the Europe Contactless Payment Market is poised for accelerated growth through innovations and investments in this technology.

Regulatory Support for Digital Payment Solutions

The European Union’s regulatory support for digital payment solutions has emerged as a strong driver of the Europe Contactless Payment Market Industry. Initiatives such as the Revised Payment Services Directive (PSD2) have encouraged the implementation of secure and innovative payment methods, specifically emphasizing transparency and consumer protection. According to the European Commission, more than 150 payment service providers have entered the European market since the implementation of PSD2, indicating a robust increase in competition, which is pivotal for contactless payments.

Established financial institutions are leveraging this regulatory framework to enhance their offerings and integrate cutting-edge technologies. For instance, banks like Deutsche Bank and HSBC are actively investing in contactless technology to meet the new standards set by European authorities, demonstrating a clear trajectory towards more sophisticated payment solutions. As the regulatory environment continues to evolve, it ensures that consumers have access to advanced and secure contactless payment options, thus propelling market growth.

Increase in E-commerce and Retail Onboarding

The dynamic rise of e-commerce in Europe has explicitly contributed to the expansion of the Europe Contactless Payment Market Industry. During the past few years, European e-commerce sales have witnessed an increase of nearly 30%, reaching approximately 500 billion Euros in 2021. As consumers increasingly turn to online shopping, retailers are rapidly adapting by integrating contactless payment options to facilitate smoother transactions. According to the Ecommerce Europe Association, over 70% of online retailers in Europe now accept some form of contactless payment.

Companies such as Amazon and Zalando are leading the charge in offering seamless checkout experiences, thus encouraging consumer adoption of contactless methods. The Covid-19 pandemic acted as a catalyst for e-commerce growth, with more consumers preferring to shop online to avoid physical contact. This shift towards digital shopping is driving the demand for secure and efficient payment methods, which will continue to propel the Europe Contactless Payment Market forward.

Europe Contactless Payment Market Segment Insights

Contactless Payment Market Technology Insights

The Europe Contactless Payment Market, particularly within the Technology segment, is experiencing significant advancements and growth as consumer preferences evolve and the demand for convenient payment solutions rises. With the rise of digital transactions, contactless payment methods such as Near Field Communication (NFC) are becoming increasingly popular due to their ease of use and speed, effectively enhancing the shopping experience for customers across various sectors. NFC technology stands out for its ability to facilitate quick and secure transactions through mobile devices, enabling users to make payments with just a tap.

Radio Frequency Identification (RFID) technology is also gaining traction as it provides another layer of convenience and security for contactless payments by enabling real-time data tracking and inventory management. Furthermore, QR Code payments are emerging as a low-cost and accessible alternative to traditional payment methods, particularly during the pandemic when contactless solutions gained momentum. The ability to scan QR codes using smartphones facilitates seamless transactions and is widely adopted by many retailers and service providers.

Host Card Emulation (HCE) is transforming mobile payments, allowing users to make secure transactions without the need for a physical card, making it vital for mobile wallets. This technology contributes to the widespread adoption of contactless payment solutions, keeping pace with consumer demands for digital experiences. Magnetic Secure Transmission (MST) is also a noteworthy player, offering a way to secure transactions with existing magnetic stripe readers, thus expanding the user base of contactless payments beyond those equipped with advanced chip readers. Each of these technologies contributes uniquely to the growth of the Europe Contactless Payment Market by enhancing transaction security, improving user experience, and increasing accessibility in the ever-evolving digital payment landscape. 

As a result, businesses across Europe are optimizing their payment ecosystems, leveraging these technologies to meet the growing expectations of tech-savvy consumers driven by convenience and speed. The competition among these technologies is fostering innovation, which further propels the evolution of secure payment solutions across various sectors in Europe. Thus, the Technology segment will continue to play a crucial role in shaping the future of the contactless payment landscape throughout the region.

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

Contactless Payment Market Payment Mode Insights

The Europe Contactless Payment Market, particularly in the Payment Mode segment, is rapidly evolving with various innovative solutions shaping consumer engagement and transaction efficiency. Mobile wallets have emerged as a key player, offering convenience and security, appeal especially to younger consumers who favor digital payment solutions. Contactless cards remain prevalent in retail, providing a straightforward method for everyday purchases, while wearables have gained traction, particularly in fitness and health sectors, indicating a shift towards more integrated payment options that enhance user experience.Smartphones are increasingly enabling contactless payments through embedded technology, facilitating seamless transactions across diverse points of sale. 

Additionally, IoT devices present unique opportunities, merging payment capabilities with smart home technology, further driving adoption. Together, these modes of payment illustrate the dynamic nature of the Europe Contactless Payment Market, characterized by a growing preference for efficiency, security, and technology integration, responding to consumer demand and establishing new transaction paradigms in the region.As regulatory frameworks evolve alongside consumer behavior, opportunities for growth and innovation in these payment modes are expected to flourish, positioning the market for sustained development.

Contactless Payment Market End Use Insights

The End Use segment of the Europe Contactless Payment Market is experiencing robust growth, notably driven by a shift in consumer behavior towards convenience and speed in transactions. In retail, contactless payments have gained significant traction, with many vendors adopting these technologies to enhance customer experience and streamline point-of-sale operations. The transportation sector leverages contactless payments to offer seamless fare collection, reducing queues and improving service efficiency. In healthcare, contactless transactions facilitate quick payments, which is vital in high-traffic environments such as hospitals and clinics.

The hospitality industry is also embracing this method, enabling guests to settle their bills swiftly and conveniently. Meanwhile, the E-commerce sector has seen a surge in contactless payment options as online shoppers increasingly prefer secure, quick transaction methods. This entire landscape is supported by a favorable regulatory environment in Europe that promotes digital payments. Collectively, these factors position the End Use segment as a critical area of focus within the broader Europe Contactless Payment Market, reflecting the evolving dynamics of consumer preferences and technological advancements in payment solutions.

Contactless Payment Market Transaction Type Insights

The Europe Contactless Payment Market is experiencing significant growth, driven by various transaction types that cater to diverse consumer needs. In-Store Transactions are particularly important, as they facilitate swift and convenient payments, aligning with the increasing preference for contactless solutions among European consumers. Remote Transactions, on the other hand, have gained traction due to the surge in online shopping, especially during the pandemic, leading to a shift in payment behaviors and preferences. Peer-to-Peer Transactions are also notable as they enable individuals to quickly send money directly to each other, promoting social interactions and informal payment methods.

Lastly, Bill Payments play a critical role in the landscape, allowing users to handle their financial obligations seamlessly through contactless methods, thus emphasizing efficiency in day-to-day transactions. Overall, the diversification of transaction types significantly enhances the appeal of contactless payment methods, reflecting broader trends such as convenience, safety, and the evolving expectations of consumers across Europe. The adaptability of these transaction types underlines their significance in driving the overall momentum of the Europe Contactless Payment Market.

Contactless Payment Market Regional Insights

The Europe Contactless Payment Market is experiencing significant growth, driven by the increasing adoption of contactless technologies across various regions, notably in Germany, the UK, and France. Germany is a key player in this sector, showcasing strong consumer acceptance of contactless payments, resulting in substantial transaction volumes. Meanwhile, the UK has positioned itself as a leader in contactless innovations, with a high penetration of mobile wallets and contactless cards among its population, making it a vital region for market expansion. France follows closely, where government initiatives to promote digital payments have bolstered user engagement and infrastructure development. 

Further east, Russia is witnessing a rising trend in digital payment solutions, supported by an increasingly tech-savvy consumer base. Italy and Spain are also making notable progress, as their banking sectors encourage the integration of contactless methods to enhance user convenience and speed of transactions. The Rest of Europe, encompassing various smaller markets, contributes to the diversification and resilience of the Europe Contactless Payment Market by adopting localized strategies that cater to regional demands. Collectively, these regions embody the dynamic nature of the Europe Contactless Payment Market and highlight opportunities for growth, driven by shifting consumer behaviors towards cashless transactions and the ongoing development of supportive regulatory frameworks.

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

Europe Contactless Payment Market Key Players and Competitive Insights

The Europe Contactless Payment Market has been experiencing significant growth and transformation, driven by advancements in technology and changing consumer behaviors. As more consumers embrace the convenience of contactless transactions for everyday purchases, companies in this market are continually innovating to attract new users and retain existing customers. The competitive landscape is characterized by a diverse array of providers, including payment processors, technology firms, and financial institutions, all vying for market share. As businesses increasingly focus on enhancing user experience, improving transaction security, and expanding acceptance at retail locations, the competition intensifies. Factors such as regulatory changes, the rise of mobile wallet applications, and the increasing adoption of Near Field Communication (NFC) technology further shape the competitive dynamics in this sector, which is integral to the broader financial technology ecosystem.

Adyen has established a prominent position in the Europe Contactless Payment Market, leveraging its cloud-based platform to deliver seamless payment solutions across various channels. The company is known for its robust technology infrastructure which allows merchants to accept payments in multiple currencies and from a variety of payment methods, including contactless options. Adyen's strengths lie in its strong partnerships with major players in the retail and e-commerce sectors, enabling them to support a wide range of business needs. This platform not only provides a unified payment experience for consumers but also offers valuable insights and analytics to help businesses optimize their payment strategies. By continuously enhancing its technological capabilities and expanding its operational footprint within Europe, Adyen has been able to maintain a competitive edge in a rapidly evolving market landscape.

Samsung Pay has emerged as a key player in the Europe Contactless Payment Market, standing out for its combination of near-field communication technology and magnetic secure transmission, enabling secure transactions at a variety of retail touchpoints. The service is designed to allow users to integrate their credit and debit cards into their Samsung devices, thereby facilitating quick, tap-and-go payments. In Europe, Samsung Pay has formed strategic partnerships with numerous banks and merchants that have strengthened its market presence and broadened its acceptance among consumers. Key strengths of Samsung Pay include its user-friendly interface and emphasis on security features, such as biometric authentication, which instills consumer confidence. Additionally, the company is continuously exploring opportunities for growth through mergers and acquisitions that can enhance its service offerings and expand its reach within the European market. Through persistent innovation and strategic alliances, Samsung Pay aims to solidify its position as a leading solution in the contactless payments domain.

Key Companies in the Europe Contactless Payment Market Include

• Adyen


• Samsung Pay


• Worldpay


• Google Pay


• American Express


• Klarna


• Visa


• Revolut


• PayPal


• Mastercard


• Nets


• Checkout.com


• Wirecard


• Apple Pay


• Ingenico

Europe Contactless Payment Market Industry Developments

In recent months, the Europe Contactless Payment Market has seen significant developments, including advancements in technology and increased consumer adoption. Companies like Adyen and Worldpay have reported substantial growth in transaction volumes due to rising consumer preference for seamless payment solutions. In July 2023, Mastercard unveiled new security features aimed at enhancing user confidence in contactless transactions, while Visa announced a partnership with Samsung Pay to integrate advanced digital wallet functionalities across Europe. Notably, Klarna's expansion into new European markets has amplified the uptake of buy-now, pay-later options, influencing contactless payment methods. 

Additionally, in August 2023, Apple Pay's user base surged, benefiting from its integration with more banking institutions across Europe. Recent mergers and acquisitions include the acquisition of Ingenico by Worldline, which was finalized in April 2023, creating a formidable player in the payment processing landscape. The growth in transaction values coupled with strategic collaborations among key players, such as Revolut and PayPal enhancing cross-border payments, signifies a robust trajectory for the contactless payment sector in Europe. The overall market dynamics continue to evolve rapidly, with regulatory frameworks also adapting to facilitate this payment innovation.

Europe 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 End 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

• Germany


• UK


• France


• Russia


• Italy


• Spain


• Rest of Europe

Report Attribute/Metric Source:	Details
MARKET SIZE 2018	4.92(USD Billion)
MARKET SIZE 2024	5.75(USD Billion)
MARKET SIZE 2035	37.5(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	18.586% (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	Adyen, Samsung Pay, Worldpay, Google Pay, American Express, Klarna, Visa, Revolut, PayPal, Mastercard, Nets, Checkout.com, Wirecard, Apple Pay, Ingenico
SEGMENTS COVERED	Technology, Payment Mode, End Use, Transaction Type, Regional
KEY MARKET OPPORTUNITIES	Growing smartphone adoption, Increasing e-commerce transactions, Enhanced security features demand, Integration with IoT devices, Expansion in public transport systems
KEY MARKET DYNAMICS	rising smartphone penetration, increased consumer adoption, growing e-commerce transactions, enhanced security features, supportive regulatory environment
COUNTRIES COVERED	Germany, UK, France, Russia, Italy, Spain, Rest of Europe