Near field communication payments permit people to buy things by simply tapping their phone or card near a payment machine. This technology uses short range radio signals to securely transfer the payment details. NFC is fast, convenient and secure, which makes it common in places like retail stores, restaurants and other public transport contactless transactions. This technology operates through digital wallets like Google Pay, and Apple Pay or by using contactless credit or debit cards. The client needs to activate the NFC feature on their smartphone or card and hold it near the payment machine to use NFC.
NFC payments offer tremendous benefits in terms of convenience, lowering the need for cash or traditional swipe cards. This seamless payment method saves time and provides a secure transaction process, as sensitive information is encrypted. Nowadays, many businesses are adopting NFC payments to ensure that customers have the best experience while keeping up with the modern trends of technology. According to a recent study by Allied Market Research, the global NFC payments market Industry is expected to showcase a remarkable CAGR of 35.9% during the projected period.
Allied Market Research has recently published a report, titled, “NFC Payments Market Size by Device Type (Smartphones, Smartwatches, Tablets, EMV Cards, Others), by End User (Retail Stores, Hospitality, Healthcare Services, Others): Global Opportunity Analysis and Industry Forecast, 2023-2032″. According to the report, the global NFC payments market generated $25.8 billion in 2022, and is anticipated to generate $507.1 billion by 2032, witnessing a CAGR of 35.9% from 2023 to 2032.
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Prime Determinants of Growth
The increasing adoption of smartphones as preferred payment devices, coupled with rising consumer demand for faster and more secure transactions, is boosting the growth of the NFC payments market. Additionally, the surge in contactless payment acceptance by retail stores, owing to the rising need for streamlined transactions and enhanced customer experiences, is further fueling market expansion. However, the requirement for NFC-compliant smartphones poses a potential barrier, restricting the widespread adoption of mobile contactless payments, particularly among users with older or non-compatible devices. This factor is anticipated to hamper market growth during the forecast period. On the other hand, the continuous advancements in mobile payment technologies and the expanding integration of NFC capabilities by leading payment apps like Apple Pay and Google Pay are expected to unlock growth opportunities in the NFC payments market.
COVID-19 Scenario:
- The COVID-19 pandemic made a huge impact on the global NFC payments market. The increased awareness of hygiene and safety concerns boosted the adoption of contactless payments, as consumers actively sought to reduce physical contact with cash and payment terminals.
- The implementation of lockdowns and restrictions on in-person shopping contributed to an increased reliance on online transactions, further elevating the role of NFC payments in facilitating secure online transactions. The fear of virus transmission through physical currency drove the adoption of digital payment methods, with NFC technology playing a crucial role in enabling secure and convenient contactless transactions.
- The pandemic acted as a catalyst for the digital transformation, emphasizing the need for enhanced security measures within the NFC payments market to safeguard users’ financial information against fraud and cyber threats.
Device Type: Smartphones Sub-Segment Expected to Grow with Highest CAGR by 2032
The smartphones sub-segment dominated the global NFC payments market share in 2022, holding a major share of 30.1%. This dominance is expected to continue by 2032, growing with CAGR of 36.6%. This growth is mainly because of the remarkable convenience, speed, and security of smartphone-based payments, coupled with their widespread adoption as a preferred method for in-store and online transactions.
End User: Retail Stores Sub-Segment Anticipated to Grow with Highest CAGR by 2032
The retail stores sub-segment dominated the market in 2022, holding a major share of 35.2%. This dominance is expected to continue till 2032, growing with a CAGR of 36.5%. This growth is mainly due to the increasing adoption of contactless payments in retail stores for streamlining transactions, thus offering faster and more efficient checkouts.
By Region: Asia-Pacific Held the Dominant Position in 2022
The Asia-Pacific region dominated the global NFC payments market in 2022, holding a major share of 34.1%. This is mainly due to the increasing adoption of contactless payments, driven by a surge in the issuance of contactless cards by banks and a substantial 29% year-on-year growth in mobile wallet usage in 2020. Collaborative efforts within the market, coupled with favorable regulatory conditions supporting widespread adoption, have further boosted the regional market’s growth.
Leading Players in the NFC Payments Market:
- Block, Inc.
- Apple Pay
- Samsung Pay
- One97 Communications
- Visa Inc.
- AMERICAN EXPRESS COMPANY
- PayPal
- Alphabet Inc. (Google LLC)
- Venmo
- Mastercard Incorporated
The report provides a detailed analysis of the key players of the global NFC payments market. These players have adopted different strategies, such as new product launches, collaborations, expansion, joint ventures, agreements, and others to increase their market share and maintain their dominance in different regions. The report is valuable in highlighting business performance, operating segments, product portfolio, and strategic moves of market players to showcase the competitive scenario.
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Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP based in Wilmington, Delaware. Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality of “Market Research Reports Insights” and “Business Intelligence Solutions.” AMR has a targeted view to provide business insights and consulting to assist its clients to make strategic business decisions and achieve sustainable growth in their respective market domain.
We are in professional corporate relations with various companies, and this helps us in digging out market data that helps us generate accurate research data tables and confirms utmost accuracy in our market forecasting. Allied Market Research CEO Pawan Kumar is instrumental in inspiring and encouraging everyone associated with the company to maintain high quality of data and help clients in every way possible to achieve success. Each data presented in the reports published by us is extracted through primary interviews with top officials from leading companies of domain concerned. Our secondary data procurement methodology includes deep online and offline research and discussion with knowledgeable professionals and analysts in the industry.
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