Going Cashless with Contactless Payments Technology

11 September 2018: Contactless payment is a secure method that allows consumers to buy a variety of products using debit or credit cards or smartcards. A contactless payment system uses the Near Field Communication or NFC such as Samsung Pay or Radio-Frequency Identification or RFID technologies that enable secure digital transactions. Major advantages of using contactless payments are:

·       Better security

·       Increased convenience

·       Faster transactions

·       Assured payments

·       Increased Average Transaction Value or ATV

·       Lowered costs of manual cash handling

Such systems find application in a variety of sectors including healthcare, retail, hospitality, transportation, and many others.

Transportation Application Segment to Have Maximum Growth

The transportation application segment for contactless payments is projected to expand at a growth rate of 37.1 % during the forecast years (from 2017 to 2025). Rapidly growing travel and tourism sector across the globe is the key reason behind the segment development. Other application segments including retail, healthcare, and hospitality are also expected to have a considerable growth over the next few years. This is attributed to the rising popularity of contactless payment systems in these sectors due to the advantages such as convenience and ease of use.

Companies in this field focus more on new product development to encourage usage of these systems. For example, Visa recently expanded its network of partners in order to drive the usage of contactless payments in public transportation. It has partnered with 14 different technology firms from around the world with a focus on encouraging the adoption of contactless payment systems in the transportation sector.

Market Insights

The findings of a report by Grand View Research, Inc. estimate that the global contactless payments market would reach at USD 2.23 trillion (transaction value) by 2025. The market is expected to witness considerable growth due to wide usage of contactless payment systems by various end use industries across the globe. Moreover, rising popularity of QR code systems due to extensive usage of smartphone devices is another major driver for the global market. Technological developments such as Internet-of-Things (IoT) are also anticipated to propel the market growth in near future. Some of the leading companies in the global contactless payments market are Wirecard AG; Giesecke & Devrient GmbH; Heartland Payment Systems, Inc.; On Track Innovations Ltd.; and Thales Group.

In-Depth Research Report On Contactless Payments Market:

https://www.grandviewresearch.com/industry-analysis/contactless-payments-market