Contactless payments have witnessed tremendous growth in recent years and are fast becoming one of the most preferred modes of payment around the world. The convenience they offer has led to their mass adoption among consumers as well as merchants. In this article, we discuss the rise of contactless payments and highlight some key trends that underline their growing importance.
The Growth of Contactless Payments
Contactless payments experienced exponential growth even before the pandemic but Covid-19 accelerated their adoption globally. According to a report, contactless payments grew by 70% worldwide in 2020. This growth was fuelled by an increased preference for tap and pay transactions that reduce physical contact. Major payment networks also increased transaction limits to encourage more digital payments. Today, contactless cards, mobile wallets, and contactless-enabled devices account for a significant share of in-store transactions globally.
Mobile Wallets Driving Further Adoption
Mobile wallets have played a big role in popularizing contactless payments. Their seamless integration with smartphones and ability to make both in-store and online payments has enhanced the appeal of digital payments for consumers. Today mobile wallets command a sizeable share of the contactless payments market and are expanding their reach further. Major players like Google Pay, Apple Pay, and Samsung Pay have seen tremendous growth in user base and transaction volumes. Their ongoing campaigns to promote contactless capabilities have helped change payment behaviors across age groups and regions.
Security and Convenience: Key Drivers of Growth
Consumers are also drawn to Contactless payments due to the security and convenience they offer. Contactless transactions require customers to simply tap their cards or devices on payment terminals which reduces the risk of fraud compared to physical card transactions that can leave card details vulnerable. The rise of EMV chip technology has further enhanced security by making counterfeit card fraud difficult. On the other hand, the seamless one-tap experience has improved the shopping experience for customers by speeding up checkout times. Merchants have also found decreased transaction times beneficial for serving more customers.
Changing Attitudes and Behaviours
A marked shift in consumer attitudes and behaviours has supported contactless payments' adoption worldwide. Younger demographics, in particular, have readily embraced digital and mobile-first payment options. Surveys show that consumers today prefer contactless payments over cash or physical cards due to perceived advantages like ease of use and security. They expect merchants across industries to support contactless payments. At the same time, retailers have also acknowledged its benefits like reduced queues, less cash management, and improved operational efficiency. Governments worldwide are incentivizing digital payments adoption through policies and promotion campaigns.
Future of Payments is Contactless
Going forward, contactless payments are expected to account for the majority of in-store transactions globally, exceeding cash and physical card payments. Industry reports project that contactless transactions could grow at a 20-30% CAGR in the next 5 years. Key factors that will drive further growth include rising popularity of mobile wallets, higher contactless transaction limits, expanding acceptance at smaller merchants, and investments by payment networks to expand infrastructure in newer geographies and industries. While alternatives like biometrics, QR-based and wearable payments will also emerge, contactless cards and devices are likely to remain the primary digital payment mode for the foreseeable future.
Regulatory Support and Standardization
For contactless payments to reach their full potential, cooperation between stakeholders and supportive regulations will play a crucial role. Standardization of technologies and specifications through organisations like EMVCo has facilitated global acceptance and interoperability of digital payment instruments. Continued monitoring of security risks and identity verification protocols will also boost consumer confidence. Governments can accelerate financial inclusion goals through policy incentives for merchants as well as consumers. Regional payment networks may continue expanding acceptance networks, thereby benefitting both urban and rural populations. With ongoing efforts on these fronts, contactless payments are well positioned to transform retail commerce and become the predominant digital payment mechanism worldwide in the coming decade.
In conclusion, contactless payments have emerged as the future of digital retail transactions, spurred by growing consumer preference, expanding merchant acceptance as well as enabling technologies. Their seamless user experience and security benefits have accelerated adoption globally during the pandemic. Industry projections point towards continued strong growth momentum ahead as the popularity of mobile wallets and contactless transactions surpass physical cash and card usage in the years to come. Standardization and ongoing cooperation among stakeholders will help contactless payments achieve their full potential and ubiquitous acceptance. Undoubtedly, the way we pay will continue transitioning digitally with contactless emerging as the primary mainstream mode of digital commerce.
Get More Insights On This Topic: Contactless Payments
Contactless Payment Market report published by Value Market Research, which studies the future outlook of the market.
It includes the size, share, growth, trends, key players, segments and regional analysis in detail during the study year 2019-2027.The research report also covers the comprehensive profiles of the key players in the market and an in-depth view of the competitive landscape worldwide.
The major players in the Contactless Payment include Gemalto, Heartland Payment Systems, Inc., Visa Inc., Verifone, Giesecke & Devrient GmbH, Ingenico Group SA, IDEMIA, Wirecard AG., On Track Innovations Ltd., and Thales Group.
This section includes a holistic view of the competitive landscape that includes various strategic developments such as key mergers & acquisitions, future capacities, partnerships, financial overviews, collaborations, new product developments, new product launches, and other developments.Get more information on "Global Contactless Payment Research Report" by requesting FREE Sample Copy at https://www.valuemarketresearch.com/contact/contactless-payment-market/download-sampleMarket SegmentationThe broad Contactless Payment has been sub-grouped into the Devices, Solution, Application and Region.
The report studies these subsets with respect to the geographical segmentation.
The strategists can gain a detailed insight and devise appropriate strategies to target specific market.
Socially-conscious people raise lots of funds for communities, families, individuals, and NGOs facing hardship.
They can implement crowdfunding campaigns for several causes via Android and iOS apps and a modern web panel.
They can process transactions via American Express, credit cards, debit cards, Google Pay, IMPS, Mastercard, net banking, Paytm, RuPay, Visa, and wire transfers.
Category-wise segregation of campaigns - Fundraising efforts are split into different types like animal welfare, arts and media, education, emergencies, environment, human rights, rural development, social entrepreneurship, sports, and women empowerment.
A flexible withdrawal option - Users who are conducting the online fundraising campaigns can withdraw the received money directly to their bank account or digital wallet.
Hence, a Fundraise clone script offers more convenience and flexibility.
The Report published on UpMarketResearch.com about “Contactless Smart Cards in the Banking Sector Market” is spread across 127 pages and provides newest industry data, market future trends, allowing you to identify the products and end users driving Revenue growth and profitability.
Contactless Smart Cards in the Banking Sector Industry research report provides granular analysis of the market share, segmentation, revenue forecasts and geographic regions of the market.The report begins with the overview of the Contactless Smart Cards in the Banking Sector market and updates the users about the latest developments and future expectations.
It presents a comparative detailed analysis of all the regional and major player segments, offering readers a better knowledge of areas in which they can place their existing resources and gauging the priority of a particular region in order to boost their standing in the global market.
For Sample Copy Of This Report @ https://www.upmarketresearch.com/home/requested_sample/1641In this report, there is a healthy amount of coverage of the market economies such as the demand and supply, cost and profit of the Contactless Smart Cards in the Banking Sector Market.
This holds key importance for users and hence this information is well supported with due statistics that are represented in easy to consume graphs, charts, and tables.The report compiles exhaustive information obtained via proven research methodologies and from trusted sources within the industries.
The report segments the Global Contactless Smart Cards in the Banking Sector market as: Regional Segment Analysis (Regional Consumption Volume, Consumption Volume, Revenue and Growth Rate 2013-2023):North AmericaEuropeChinaJapanSoutheast AsiaIndia Gain Full Access of Contactless Smart Cards in the Banking Sector Market Report along with complete TOC Buy This Report @ https://www.upmarketresearch.com/buy/Global-Contactless-Smart-Cards-in-the-Banking-Sector-Industry-Market-Analysis-Forecast-2018-2023 Major Points in Table of Content:Chapter 1 Contactless Smart Cards in the Banking Sector Market OverviewChapter 2 Global Economic Impact on Contactless Smart Cards in the Banking Sector IndustryChapter 3 Global Contactless Smart Cards in the Banking Sector Market Competition by ManufacturersChapter 4 Global Contactless Smart Cards in the Banking Sector Production, Revenue (Value) by Region (2013-2018)Chapter 5 Global Contactless Smart Cards in the Banking Sector Supply (Production), Consumption, Export, Import by Regions(2013-2018)Chapter 6 Global Contactless Smart Cards in the Banking Sector Production, Revenue (Value), Price Trend by TypeChapter 7 Global Contactless Smart Cards in the Banking Sector Market Analysis by ApplicationChapter 8 Global Contactless Smart Cards in the Banking Sector Manufacturers AnalysisChapter 9 Contactless Smart Cards in the Banking Sector Manufacturing Cost AnalysisChapter 10 Industrial Chain, Sourcing Strategy and Downstream BuyersChapter 11 Marketing Strategy Analysis, Distributors/TradersChapter 12 Market Effect Factors AnalysisChapter 13 Global Contactless Smart Cards in the Banking Sector Market Forecast (2018-2023) Key Reasons to Purchase:To gain insightful analyses of the market and have a comprehensive understanding of the Contactless Smart Cards in the Banking Sector and its commercial landscape.Assess the Contactless Smart Cards in the Banking Sector production processes, major issues, and solutions to mitigate the development risk.To understand the most affecting driving and restraining forces in the Contactless Smart Cards in the Banking Sector market and its impact on the global market.Learn about the market strategies that are being adopted by your competitors and leading organizations.To understand the future outlook and prospects for Contactless Smart Cards in the Banking Sector Market For More Information, Click @ https://www.upmarketresearch.com/home/enquiry_before_buying/1641Customization of the Report:UpMarketResearch provides free customization of reports as per your need.
