Contactless Payment Market Size - By Payment, By Technology, By Application, By End use, Growth Forecast, 2025 - 2034

Contactless Payment Market Size

The global contactless payment market size was valued at USD 41.6 billion in 2024 and is estimated to register a CAGR of 12.3% between 2025 and 2034.
 

Contactless payment is gaining popularity with mobile wallets on phones and smart cards are becoming a primary payment source for many people. The contactless payment market is revolutionizing with wearable devices such as smartwatches, activity trackers, and other consumer electronic devices being used for payments. The wearable payment device market was valued at USD 56.8 billion in 2023 and is projected to grow at a CAGR of over 21% between 2024 and 2032.
 

Visa has made several programs and new payment technologies available over the last few years, empowering partners to offer convenient and secure ways to pay across a range of connected devices. This templated and open approach to facilitating payment solutions has resulted in two major consumer electronics manufacturers, Garmin and Fitbit launching products that will offer Visa account holders new ways to pay. Both the Fitbit Ionic and Garmin vívoactive 3 leverage the benefit of the Visa Token Service, a technology that replaces sensitive account information with a unique digital identifier, or token, and is designed to make payments with mobile devices more secure.
 

Passive wearable technology uses near-field communication (NFC) to transmit important data for easy payment if they have a seamless and secure connection. Consumers are actively adopting smart wearables because of the convenience connectivity wearables offer. As per Statista report, the smart wearable in APAC exceeded 530 million annual shipments worldwide in 2024. Offering a mobile payment, wearable-friendly option to customers ensures they use the financial institution’s accounts when loading their payment-enabled devices. Mobile payment requires more than chips, packaging, personalization, and activation. It requires secure integration with access systems, ticketing, and more.
 

Wearable payment systems utilize radio frequency identification (RFID), near field communication (NFC), or quick response (QR) codes as enabling technologies, and the contactless point of sale (POS) terminals and backend payment processing infrastructure being utilized for mobile payments are being leveraged to extend payment capabilities to wearables.
 

The presence of technology providers, such as Apple Inc., in North America boosts the development of wearable payment technology. Apple Pay for the Apple Watch is the first big effort at enabling payments with the wrist. Disney’s MagicBand is already a successful wearable closed-loop payment and ticketing solution, with around 11 million bands having been issued.
 

Contactless Payment Market Trends

• AI and machine learning have been in use in the credit card payment industry for several years with the use of algorithms to track new potential customers or recommending ways to redeem loyalty points. AI enables them to track and review spending data for millions of individual users to target them with offers with high accuracy and specificity.
   
• AI can mimic cognitive functions like that of a human to accomplish a task. According to the International Journal of Bank Marketing found that financial institutions using AI for data integration and analysis were able to reduce credit application processing times by up to 80% compared to traditional methods, while also improving the accuracy of risk assessments by up to 30%.
   
• AI helps financial institutions to monitor transaction data in real time and reduce or eliminate the occurrence of payment fraud committed by professional cyber criminals. It can also help to spot illegal or suspicious transactions. AI can help payment companies to analyze and study payment data to identify fraudulent transactions. It can help a payment system to learn from individual transactions improvise while learning and solve problems efficiently.
   
• The ability of AI technology to gain insights based on trend analysis through machine learning is reducing the occurrence of payment frauds. Businesses with AI-based payments gain a competitive edge as fraudulent payments are detected instantly with real-time analysis of payment data. A POS platform can provide personalized recommendations by using AI. While an integrated POS system gathers data, AI uses the data to drive the right decisions.
   
• Paytm partnered with AI search engine Perplexity to provide users with real-time financial assistance on its app in February 2025. The collaboration is aimed at integrating AI-driven intelligence into mobile payments, Paytm said in an exchange filing.
   

Contactless Payment Market Analysis

Based on technology, the contactless payment market is divided into NFC, RFID, IR, and others. The NFC segment held a market share of over 68% and is expected to cross USD 91.3 billion by 2034.  
 

• Near Field Communication (NFC) is a set of standards that enables proximity-based communication between consumer electronic devices such as tablets, personal computers, mobile phones, or wearable devices. An NFC-enabled mobile device communicates with a POS terminal that accepts contactless payment solutions. Contactless payment transactions are made using NFC-enabled devices provisioned with a mobile payment application and processed in the same way as contactless EMV chip card transactions.
   
• NFC operates at 13.56 MHz and transfers data up to 424 Kbits/second. NFC and RFID are both wireless technologies, but NFC is used at a shorter range and used for secure applications, including payment, ticketing, and access. Around three billion smartphones in the world have NFC as a standard feature. It provides a fast, simple, and secure transaction.
   
• With standardized technical specifications, NFC can feature authentication, encryption, and other security features for both applications and devices. NFC powers the technology behind mobile wallets such as Google Pay, Apple Pay, and Samsung Pay. For instance, in May 2024, Google Wallet has launched in India, separate from Google Pay. It allows users to store digital versions of credit/debit cards, tickets, boarding passes, and IDs, working mainly as a digital wallet. Unlike Google Pay, which focuses on UPI payments, Google Wallet supports NFC-based tap-to-pay functionality. Currently, it integrates with limited banks and services but is expected to expand.
   

Based on the application, the contactless payment market is categorized into retail, healthcare, hospitality, transportation, warehouse & logistics, and others. The retail segment held a market share of 39.5% in 2024.
 

• The developing retail sector will drive the demand for digital payment solutions, as the increasing number of consumers prefer electronic payments over cash. These terminals offer retailers a host of benefits including fast transaction speeds, increased sales, and improved customer satisfaction. Mobile POS devices offer portability enabling the retailer to carry the terminal to customers than expecting them to wait at the counter for payment.
   
• This helps to avoid long customer queues at the payment counter, ensuring client satisfaction, and streamlining overall operations at the retail store. The increasing competition amongst retailers to provide enhanced customer services will favor the adoption of mobile POS terminals. Players have introduced POS software compatible with EMV compliance and NFC payments, enabling secure and faster payments for customers.
   
• The traditional retail sector is witnessing a radical transformation with the advent of digitalization. Supermarket owners are focusing on providing enhanced shopping experiences for clients to withstand the ever-growing competition. They are integrating electronic shelf labels with POS to provide a completely digitized system for seamless payments and checkouts.
   
• Contactless payments made at several POS terminals across a chain of stores can be centrally managed using POS software, enabling retailers to maintain a precise record of transactions and inventories simultaneously. An increasing use of smart cards and mobile wallets in Europe and North America will drive the retail contactless payment market growth.
   

Based on payment, the contactless payment market is divided into POS terminals, smart card, mobile apps & wallets, wearable payment devices, and others. The POS terminal segment dominated the market accounting for over USD 12 billion in 2024.
 

• The increasing penetration of digitalization across retail, hospitality, transportation, and warehouse industries will drive the POS terminal market growth. The POS terminals industry will witness a steady growth attributed to the integration of wireless technologies such as Bluetooth and NFC in these terminals. NFC is a secure contactless technology where the user must simply hold the smartphone near an NFC enabled POS terminal to make payments.
   
• Mobile platform developers such as Microsoft, Google, and Apple, supported Bluetooth for several years, but have now shifted their focus to NFC payments with their mobile wallets. Samsung Pay mobile wallet partners with renowned payment card networks, such as Visa and American Express, to ensure seamless payments.
   
• The POS terminals market will witness growth over the forecast timeframe due to the increasing penetration of EMV (EuroPay, Mastercard, and Visa) compliant POS terminals. The organizations established the technology to ensure a global interoperability of smart card-based payments. When payment is made with a card, the EMV compliant POS terminal verifies the user. The chip on the card and the POS terminal creates a unique, encrypted code, ensuring security and privacy. Increased safety offered by EMV compliant terminals will drive the retail POS terminals market growth.
   

Based on end use, the contactless payment market is divided into consumers (B2C transactions), and enterprises (B2B transactions). The consumers (B2C transactions) segment is projected to grow to the fastest CAGR of over 12% during the forecast period.
 

• Consumers (B2C transactions) segment is growing due to the widespread adoption of digital wallets, NFC-enabled cards, and mobile payment solutions for everyday transactions. Retail, transportation, hospitality, and food services have rapidly integrated contactless payment options to enhance convenience, speed, and hygiene.
   
• The rise of e-commerce and the shift toward cashless economies further drive consumer adoption, with loyalty programs and instant rewards adding incentives for frequent use.
   
• Additionally, advancements in wearable payment devices, smartphones, and smart cards have strengthened consumer reliance on tap-to-pay methods. Many banks and fintech firms actively promote contactless payments with cashback offers, discounts, and seamless integration into banking apps.
   
• Consumers prioritize security and ease of transactions, making B2C payments a dominant segment in the market. The increasing penetration of contactless-enabled POS terminals across urban and semi-urban areas continues to expand this segment’s share.
   

In 2024, the China dominate the APAC contactless payment market with revenue around USD 5 billion.
 

• With the growing use of mobile wallets and QR code payments, China is constantly evolving. Leading platforms such as Alipay and WeChat Pay have enabled millions to make transactions digitally with ease. In July 2024, Alipay launched a new feature, “Tap!”, which enhances contactless payment experiences throughout the country. Users can now complete transactions just by tapping their phones on a merchant's USB add-on at the register, making the checkout experience seamless for customers and merchants.
   
• China has one of the most innovative fintech ecosystems which have helped boost the advancement of payment technologies. With high smartphone penetration, most of the population has access to mobile payment options. Unlike many regions that still depend on NFC enabled cards, China has made a direct shift to mobile transactions with the QR code and biometric authentication taking the lead as ways to make payments. The use of POS terminals that allow contactless payments has also increased, which further promotes this shift.
   
• Moreover, the vigorous government campaign for digital financial inclusion has motivated businesses of all scales to implement contactless payments. Programs like the Digital Yuan (e-CNY) support the movement towards a cashless society. The existence of Alibaba and Tencent also helps to boost consumer confidence and adoption as these companies interlink payments with their ecosystems provided through e-commerce, social media, and ride-hailing services. With consistent technological development and government policy support, China continues to lead the region of APAC in contactless payment services.
   

Predictions suggest that from 2025-2034, the U.S. contactless payment market will grow tremendously.
 

• The U.S. contactless payment market will witness growth due to the increased adoption of contactless payment across several sectors including hospitality, restaurant, retail, entertainment, and healthcare. An increasing number of restaurants are using POS devices that accept contactless payments to provide fast service to customers.
   
• Several companies, such as Pax Global Technology, Square, Inc., Micros Retail Systems, and NCR Corporation, are providing innovative POS solutions for restaurants. The developed retail sector and the expanding hospitality industry in the region will also support the contactless payment market growth. According to the U.S. Department of Commerce projection, the U.S. host 95.5 million international visitors annually by 2023.
   
• The U.S. Payments Forum is a cross-industry body focused on supporting the introduction and implementation of EMV chip and other new & emerging technologies that protect the security of & enhance opportunities for payment transactions within the U.S. According to Visa, more than 50% of face-to-face Visa transactions occurred at contactless-enabled merchants as of December 2023.
   

Predictions suggest that from 2025-2034, the Germany contactless payment market will grow tremendously.
 

• In Germany - a country with a rich history in finance - big players like Deutsche Bank, Commerzbank, and Sparkasse support contactless payment options. The NFC support on debit and credit cards, specifically the Girocard system, has sped up the change movement towards contactless payments. Moreover, German customers that have been dependably cash-oriented have started to switch to digital payments because of perceived higher security and convenience.
   
• Moreover, the increase in the use of mobile payments has resulted to more dominance of Germany in the contactless payment industry in Europe. Consumers and businesses have widely adopted Apple Pay, Google Pay, and PayPal services. Retailers, public supermarkets and transit systems have adopted contactless payment methods for their services; it makes transactions instant.
   
• Moreover, the emergence of online shopping and e-commence, especially in bustling cities like Berlin, Munich and Frankfurt further boosts the growth in demand for Germany's already high supply of contactless and digital payment methods.
   

Contactless Payment Market Share

• The top 7 companies such as Visa, Mastercard, Apple, Google, Samsung, PayPal, and Alibaba hold a significant market share of over 30% in the contactless payment market.
   
• Visa is one of the leaders in contactless payments thanks to its established payment network, skilled technology partners, and network of financial institutions. As a global payment processor, Visa maintains millions of merchants where contactless payments using NFC enabled cards or digital wallets are accepted.
   
• The company’s adoption of secure EMV technology further guards against fraud, which is reassuring for customers who use contactless tap-to-pay transactions. Alongside other fintech companies, the company’s partnerships with banks and retail merchants enables Visa to dominate mobile payments.
   
• With advanced technology, the company's effort to improve customer satisfaction, and a robust presence across the globe have earned Mastercard a leading position in the contactless payments sphere.
   
• The company has been actively running campaigns towards contact less transaction like Mastercard Tap & Go for the public transport, retail, and restaurant sectors which can be seen all over the globe.
   
• Increased focus on biometric authentication and tokenization has allowed Mastercard to improve transaction security while maintaining ease of making payments. This has also contributed to the dominance of the company in the contactless payment ecosystem along with strategic expansion into emerging markets and collaboration with important banks and fintech hubs.
   
• With the adoption of Apple Pay by millions, the service has and continues to gain significant market share in the contactless payment market due to its aggressive user-base strategy alongside device ecosystem integration. Apple Pay has emerged as a popular payment option for millions around the globe because iPhones, Watches, and iPads come with secure NFCs.
   
• Along with biometric verification methods such as Face ID and Touch ID, the seamless, one-tap payment option is both secure, and user friendly. The integration of Apple Pay with important banks, stores, and even transportation systems assist in making it popular. This enhances its usage in different sectors. Maintaining a dominant position in contactless payments systems, Apple Pay prioritizes security, privacy, as well as user experience.
   

Contactless Payment Market Companies

Major players operating in the contactless payment industry include:

• Alibaba
• American Express Company
• Apple
• Google
• Ingenico Group
• Mastercard
• PayPal
• Samsung
• Verifone
• Visa
   

Competition in the contactless payment market focuses most on user adoption and merchant acceptance. The rapid growth in contactless payment technology adoption is due to an increase in the demand for speed, efficiency, and security. The competition in industry has been shifted more towards the transaction security, time needed to execute a transaction, and the ability to link it with other digital services.
 

Most leaders on the market today exploit Near Field Communication (NFC) and biometric verification for user experience purposes, allowing users to pay conveniently placed cards, mobile wallets, or even watches. The competition becomes tougher as innovations from fintech companies and tech empires enter the mark which shift the use of finance from the so-called “traditional” financial institutions. Moreover, strategic alliances with merchants and banking institutions, as well as legislative bodies, define the competitive environment.
 

Consumer habits and preferences of merchants are the two main drivers of competition in the market. Factors considered in this regard include usability, security, and acceptance across retails outlets, transport systems as well as the internet. Some firms are for example concentrated in particular urban retail markets, while others focus on specific fields such as hospitality, transportation, or even the food industry.
 

Also, different market positions may be achieved due to other pricing policies which prevail in the market such as payment per transaction or subscription-based marketable premium programs. In this high competition environment, the markets are becoming more and more integrated as new entrants and substitute goods emerge to challenge established firms, whereas hostile takeovers allow profit-makers to consolidate their stronger market position and improve their technological resources.
 

Contactless Payment Industry News

• In February 2025, Flexa, plans to incorporate Tap to Pay functionality for cryptocurrency payments. It is now possible to use an NFC-compatible contactless hardware wallet such as the Burner card to make payments without the use of a smart phone or any internet connectivity. A user simply needs to input their PIN on a Flexa point of sale (POS) terminal, then ‘tap’ on their NFC wallet, and the payment becomes fully automated to process via the blockchain. Users will also have the ability for over-the-counter payments.
   
• In September 2024, a new mobile application that allows accepting payments, transaction reporting and service requests was launched by Axis Bank in collaboration with Visa and Mintoak under the name ‘Neo for merchants. Via a partnership with PayU, a new product called ‘PayU Push Provisioning’ was created which facilitates simplified central tokenised card provisioning by merchants and banks. 
   
• In August 2024, Mastercard has partnered with boAt, a leading Indian wearables brand, to introduce tap-and-pay functionality on boAt's smartwatches. This collaboration allows Mastercard cardholders to use boAt's Crest Pay application to tokenize their debit and credit cards, enabling seamless contactless payments directly from their wearable devices.
   
• In June 2024, American Express has gained acceptance with close to 600 transit authorities around the world, with 81 of these agencies utilizing tap-to-pay capability. Noteworthy expansions include collaboration with 11 transit agencies in Ontario, Canada, and the implementation of contactless payment on the Toronto Transit Commission (TTC) buses, streetcars, and subway trains.
   

The contactless payment market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue ($Bn), transactional value ($Bn), and transactional volume (million) from 2021 to 2034, for the following segments:

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Market, By Payment

• POS terminals
• Smart card
• Mobile apps & wallets
• Wearable payment devices
• Other

Market, By Technology

• NFC
• RFID
• IR
• Others

Market, By Application

• Retail
• Healthcare
• Hospitality
• Transportation
• Warehouse & logistics
• Others

Market, By End use

• Consumers (B2C transactions)
• Enterprises (B2B transactions)

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Spain
  • Italy
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia 
• Latin America
  • Brazil
  • Mexico
  • Argentina 
• MEA
  • UAE
  • South Africa
  • Saudi Arabia