Contactless Payment Terminals Market Size
|Study Period:||2018 - 2028|
|Fastest Growing Market:||Asia Pacific|
*Disclaimer: Major Players sorted in no particular order
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Contactless Payment Terminals Market Analysis
The contactless payment terminals market is expected to witness a CAGR of 25.86% over the next five years. The global landscape of payments and transactions is changing rapidly, owing to the growing enterprises and consumer propensity toward digital transformation and the proliferation of smartphones. Technological advancements in smartphones, digital payment cards, and retail POS terminals fuel market growth.
- More and more countries are moving toward becoming cashless economies, thus encouraging digital payment providers by incentivizing their consumers' digital forms of payments. In addition, growing contactless card transactions worldwide drive the demand for contactless payment terminals in various end-user industries.
- Contactless payments are gaining significant traction due to their convenience and preference. As a result, various wearable device manufacturers are incorporating near-field communication (NFC) technology as a standard into most devices to provide greater convenience by removing the need to fumble with a wallet, purse, or phone.
- In addition, the global consumer inclination toward payment methods involving smartphones is increasing in the form of contactless payment methods at POS systems, owing to which card and financial service providers are either offering their card solutions on smartphones or via third-party vendors.
- Additionally, the rising financial frauds worldwide have influenced government regulatory bodies to secure payment transactions over the past few years. With customers demanding safe and reliable digital transactions, the need for using secure payment processes has increased. Therefore, these regulatory bodies have positively impacted the adoption of POS terminals. With the increasing mobility trends worldwide, mobile POS systems are gaining traction. With the advent of cashless transactional technologies, POS is expected to witness an increase in adoption rates.
- Moreover, technological advancements are shaping the future of the contactless payment terminals market. Market vendors are focusing on developing payment platforms that are agile and efficient and also increase the penetration and reach of contactless payments. For instance, in February last year, digital payments player Infibeam Avenues Limited (IAL) announced to broaden its payment solutions portfolio by launching a no-hardware contactless mobile point of sale (POS), which will facilitate card payment transactions for small vendors through a tap-on-phone technology.
- During the COVID-19 pandemic, consumers worldwide started finding ways to avoid human contact in order to protect themselves from getting affected. Due to this, the demand for contactless payments has increased, boosting the demand for various contactless payment terminals, such as contactless POS terminals, in multiple industries. In addition, even after the pandemic, the demand for contactless payment terminals is expected to grow rapidly, owing to the proliferation of digital payments in emerging economies.
Contactless Payment Terminals Industry Segmentation
Contactless payment systems are credit cards, debit cards, smart cards, or other devices, including smartphones and other mobile devices that use radio-frequency identification (RFID) or near field communication (NFC), e.g., GooglePay, Apple Pay, Fitbit Pay, Murphy, or any bank mobile application that support contactless technology for making secure payments.
The Contactless Payment Terminals Market is segmented by Technology (Bluetooth, Infrared, Carrier-based, and Wi-Fi), Payment Method (Account-based, Credit/Debit Card, Stored Value, and Smart Card), Device (Integrated POS, mPOS, PDA, Unattended Terminal, and Contactless Reader), End-user Industry (Retail, Transportation, Banking, Government, and Healthcare), and Geography (North America, Europe, Asia-Pacific, Latin America, and Middle-East and Africa). The market sizes and forecasts are provided in terms of value (USD Billion) for all the above segments.
|Other Payment Modes|
|Other End-user Industries|
Contactless Payment Terminals Market Trends
This section covers the major market trends shaping the Contactless Payment Terminals Market according to our research experts:
Retail Industry is Expected to Hold Major Market Share
- The retail segment is expected to hold a significant market share owing to the increasing use of various contactless payment terminals in the retail industry, coupled with benefits associated with offering contactless payment terminals, such as increased customer satisfaction and promotion of store sales. Retailers offering contactless payment options provide quicker and smoother checkout experiences, thus gaining customer loyalty.
- POS terminals across the retail outlets and a preference for mobile wallets while checking out from physical stores are primary drivers for this segment. The evolution of mobile-based POS (mPOS) includes a card reader connected to a basic ePOS app running on a tablet or smartphone. Merchant onboarding is simple, and the service is delivered on a ‘pay-as-you-go model. Such instances are further expected to drive the adoption of contactless payment terminals in retail segments.
- Market vendors are offering innovative solutions for retailers, which are expected to drive the adoption of contactless payment terminals in the retail segment. For instance, in September last year, Square announced the launch of Tap to Pay on iPhone to its millions of sellers across the United States. Available in the Square Point of Sale iOS app, the newly launched Tap to Pay on iPhone will enable sellers of all sizes to accept contactless payments directly from their iPhone without any additional hardware required and additional cost to the seller.
- Moreover, the growth in contactless credit card and debit card transactions in retail stores is expected to drive the demand for contactless terminals in the retail sector over the forecast period. For instance, according to the data from Worldplay, debit cards were the most popular method for POS transactions in the United Kingdom in 2021, accounting for 45% of transactions, followed by credit cards with 28% of transactions.
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Europe is Expected to Hold Significant Share in the Contactless Payment Terminals Market
- The European region is expected to hold a significant share of the market over the forecast period, owing to the changing payment landscape for many reasons: innovation, regulatory developments, the COVID-19 pandemic, and changing consumer habits. Moreover, the wider adoption of contactless payment terminals in various end-user sectors is witnessing significant growth, further driving the market in the coming years.
- Wearable devices for payments continue to take off in Europe as consumers quickly and easily integrate this relatively new payment method into their daily lives. For example, a wearable device, a ring, bracelet, or smartwatch, has Near-field Communication (NFC) capabilities. There exists ‘passive’ and ‘active’ wearables. With a passive wearable, like a ring, the transaction can be approved by entering a PIN code on the payment terminal (just like with a plastic card). With active wearables, like a smartwatch, the PIN can be entered on the wearable itself, and payment can be completed with a single tap.
- Additionally, amidst the COVID-19 situation, contactless card limits across Europe grew substantially as contactless payments were promoted across the continent. More and more consumers in the region are moving toward contactless payments after the pandemic, which is further expected to drive the market. For instance, according to European Central Bank (ECB) report, contactless card payments at the POS increased considerably in three years, from 41% of all card payments in 2019 to 62% in the last year.
- In addition, continuous product innovation by market vendors in the region is expected to drive the market over the forecast period. For instance, in May last year, PayPal Holdings Inc. launched Tap to Pay with Zettle by PayPal for small businesses in the United Kingdom. The new function will enable individual sellers and small businesses to accept contactless in-person payments directly on Android mobile devices without additional hardware and fees.
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Contactless Payment Terminals Industry Overview
The contactless payment terminals market is consolidated because few players have a significant market share. Moreover, the lack of awareness of consumers toward contactless cards and concern over security issues make market entry tough for new players. Some of the key players in the market include Thales Group, OTI, VeriFone Systems Inc., Hewlett Packard, and Ingenico Group SA.
In September 2022, ProvidusBank, with Thales Group, Mastercard, and Interswitch, announced a new Tap-to-Pay service in Nigeria. The Tap-to-Pay service allows cardholders to make fast, secure, and convenient in-store payments by tapping their NFC-enabled smart device at any contactless-enabled payment terminal.
In March 2022, together with Softpay.io, Nets, part of Nexi Group, launched the new and innovative softPOS solution, Softpay, that enables merchants to accept contactless payments on Android smartphones and tablets, just like a payment terminal, without additional hardware.
Contactless Payment Terminals Market Leaders
VeriFone Systems Inc.
Hewlett Packard Enteprise
Ingenico Group SA
*Disclaimer: Major Players sorted in no particular order
Contactless Payment Terminals Market News
- Nov 2022 - Bulgaria-based POS system Phos announced its partnership with global acquirer Elavo to launch a tap-to-pay solution in the US and Canada. Independent Software Vendors (ISVs) and Independent Sales Organisations (ISOs) in North America will be enabled with this solution to turn their mobile devices into contactless payment terminals.
- Sept 2022 - Prophius announced the launch of its PayContactless solution, certified by Mastercard, a contactless acceptance solution that turns any NFC-enabled Android device into a physical point of sale. The solution turns Android smartphones into secure payment acceptance devices for contactless cards, mobile wallets, and even smartwatches, with no additional equipment or set-up costs.
- Aug 2022 - The Bank of New Zealand (BNZ) launched BNZ Pay, a mobile app for merchants/retailers that transforms an Android device into a contactless payment terminal. Developed with Quest Payment Systems and Visa, BNZ Pay is being launched with no monthly costs to retailers who settle into a BNZ account until January 2024.
Contactless Payment Terminals Market Report - Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Porter's Five Forces Analysis
4.2.1 Threat of New Entrants
4.2.2 Bargaining Power of Buyers/Consumers
4.2.3 Bargaining Power of Suppliers
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Assessment of COVID-19 impact on the industry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Reduction in Queuing Time and Quicker Checkout Time
5.1.2 Convenience and Ease Associated with Contactless Payments
5.2 Market Restraints
5.2.1 Security Concerns Regarding Digital Payment
6. MARKET SEGMENTATION
6.1.5 Other Technologies
6.2 Payment Mode
6.2.2 Credit/Debit Card
6.2.3 Stored Value
6.2.4 Smart Card
6.2.5 Other Payment Modes
6.3.1 Integrated POS
6.3.4 Unattended Terminal
6.3.5 Contactless Reader
6.3.6 Other Devices
6.4 End-user Industry
6.4.6 Other End-user Industries
6.5.1 North America
18.104.22.168 United States
22.214.171.124 United Kingdom
126.96.36.199 Rest of Europe
188.8.131.52 Rest of Asia- Pacific
6.5.4 Latin America
184.108.40.206 Rest of Latin America
6.5.5 Middle-East and Africa
220.127.116.11 United Arab Emirates
18.104.22.168 Saudi Arabia
22.214.171.124 South Africa
126.96.36.199 Rest of Middle-East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Thales Group
7.1.2 OTI Global
7.1.3 VeriFone Systems Inc.
7.1.4 Hewlett Packard Enterprise
7.1.5 Ingenico Group SA
7.1.6 Visiontek Products LLC
7.1.7 PayPal Holdings Inc.
7.1.8 Castles Technologies
7.1.9 ID Tech Solutions
7.1.10 NEC Corporation
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
Contactless Payment Terminals Market Research FAQs
What is the study period of this market?
The Contactless Payment Terminals Market is studied from 2018 - 2028.
What is the growth rate of Contactless Payment Terminals Market?
The Contactless Payment Terminals Market is growing at a CAGR of 25.86% over the next 5 years.
Which region has highest growth rate in Contactless Payment Terminals Market?
Asia Pacific is growing at the highest CAGR over 2018 - 2028.
Which region has largest share in Contactless Payment Terminals Market?
Europe holds highest share in 2022.
Who are the key players in Contactless Payment Terminals Market?
OTI Global, VeriFone Systems Inc., Hewlett Packard Enteprise, Ingenico Group SA, Thales Group are the major companies operating in Contactless Payment Terminals Market.
Contactless Payment Terminals Industry Report
Statistics for the 2023 Contactless Payment Terminals market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Contactless Payment Terminals analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.