TMR prognosticates the global contactless payment transaction market to rise at a 55.5% CAGR between 2017 and 2025 to be valued at an US$801.4 bn by the final forecast year. By mode of payment, contactless card (NFC/RFID) could collect a larger share of the market in the near term. By region, Europe is anticipated to bag a king’s share of the market, considering its US$14.1 bn valuation attained in 2017.
Growing Interest in Fast Transactions Amplifies Demand in Retail and Transportation
Increasing use of mobile phone supporting the rise in interest in fast transactions, especially in the retail and transportation industries, is foreseen to improve the growth of the world contactless payment transaction market. For achieving a better rate of change, novel marketing techniques could be highly focused upon with guaranteeing of practical returns considered as a specific end goal. This could be evidenced by magnetic secure transmission developed by Samsung. Other technological innovations such as those in the wearables devices segment, viz. contactless bands or rings are foretold to set the tone for valuable growth of the global market.
Among a variety of solutions offered in the world contactless payment transaction market, payment terminal could rake in strong demand in the coming years. In order to manage security of transactions, vendors are constantly upgrading their security protocols, which could be another factor helping the market to attract demand.
High Installation Cost of POS Machines Discourages Adoption of Contactless Payment
Installing point-of-sale (POS) machine for contactless payment could be a tough challenge since it bears an expensive cost. On the other hand, ordinary POS machines may not require as much expense as those designed for contactless payment. Furthermore, susceptibility of contactless payment transactions to frauds is another challenge that the global market could face the brunt of.
However, benefits such as quick payment arrangements via standard contactless travel card, NFC mobile phone, or EMV contactless card are envisioned to support the growth of the international contactless payment transaction market. Moreover, leading vendors are being very particular about enabling secure transactions by providing regular security updates. Additionally, large consumer base of mobile phone users could be an added advantage for the market.