Global Market Insights has released a new report on the contactless payment market, which estimates the market valuation for contactless payment will cross USD 100 billion by 2026.
Increasing enterprise and consumer inclination toward digital transformation and proliferation of smartphones is expected to surge the demand for contactless payments. The increased deployment of POS terminals across retail outlets and growing consumer preference for mobile wallets are two of the key factors that will drive the contactless payment market growth.
According to the press release, in January 2020, Blackhawk Network Holdings revealed that mobile wallet adoption is estimated to generate around USD 190 billion in transactions in the US by 2021. Retailers are integrating mobile wallets with customer loyalty cards and promotions to enhance the consumer shopping experience. In February 2019, for example, Kroger introduced a mobile payment programme to provide shoppers with loyalty rewards such as fuel points and private brand discount.
Some major findings of the contactless payments market report are:
Several countries are shifting toward becoming cashless economies, encouraging digital payment providers to focus on providing digital payment forms to their consumers. According to a report by HSBC, the volume of contactless card transactions increased by 24% during 2018 and 2019 in the UK.
Increasing consumer inclination toward payment methods involving smartphones in the form of contactless payment methods at POS systems has led financial service providers to offer their card solutions on smartphones.
Retailers across the globe are rapidly adopting mobile payment applications, such as Alipay, Samsung Pay, WeChat Pay, PayPal, and Apple Pay, to accept payments. With changing consumer lifestyles and rapid growth in online retailing, the trend is projected to continue over the forecast timespan.
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