Contactless Payments Statistics By 2024: Quick Secure Technology

Introduction

Contactless Payments Statistics: Contactless payments have revolutionized modern transactions. Allowing secure and convenient payments without physical contact between a device and a point-of-sale terminal.

Users tap or wave their payment device near the terminal, enabling quick, hygienic, and secure transactions.

The significance of contactless payments lies in their convenience and heightened hygiene considerations. Advanced security features, widespread acceptance, and alignment with evolving consumer preferences.

Moreover, the proliferation of mobile wallets and government initiatives, alongside global expansion, has fuelled their rapid growth.

Making contactless payments an integral part of our digital economy, transcending geographic boundaries, and reshaping how we make payments.

Editor’s Choice

• Over the past decade, the contactless payment industry has experienced remarkable growth at a CAGR of 15.4%.
• The contactless payment market was valued at 22.4 billion in 2022 and is expected to account for a revenue of $90.6 billion in 2032.
• The outlook for contactless payments is robust, with a forecast of surpassing $10 trillion by 2027 and a substantial projected growth of 221% in contactless payments between 2022 and 2026.
• Regarding user demographics, younger generations are notably more inclined to embrace contactless payments. With 73% of millennials and 66% of Gen Z consistently utilizing this payment method.
• Furthermore, there’s a discernible trend in the increasing adoption of contactless payments for e-commerce transactions. In 2020, there was a significant uptick, with a 30% surge in contactless payments for online purchases.
• As per Statista, the Asia Pacific region became the largest market for contactless payments in 2020, boasting transaction values exceeding $1.5 trillion.
• A 2022 survey by the National Retail Federation unveiled that 67% of retailers now offer contactless payment options, a significant increase from the 40% recorded in 2019.

Global Contactless Payments Market Size

• Over the past decade, the contactless payment industry has experienced remarkable growth at a CAGR of 15.4%.
• In 2022, contactless payment revenue amounted to $22.40 billion, marking the beginning of an upward trajectory.
• This revenue continued to surge in the following years and is projected to reach $25.90 billion in 2023, $29.30 billion in 2024, and a substantial $35.4 billion in 2025.
• The trend is expected to persist, with revenue figures of $41.1 billion in 2026, $46.7 billion in 2027, and $51.1 billion in 2028. Illustrating the expanding adoption and popularity of contactless payment methods.
• The growth trajectory is likely to remain strong, with revenue projected to reach $59.0 billion in 2029, $66.9 billion in 2030, $77.2 billion in 2031, and an impressive $90.6 billion in 2032.
• This steady rise underscores the pivotal role that contactless payments play in shaping the future of financial transactions and their increasing prominence in the global economy.

(Source: Market.us)

Contactless Payments Market – Statistics by Components

• The global contactless payments market has grown remarkably from 2022 to 2032, with revenues escalating substantially across its key components.
• In 2022, the market’s total revenue stood at $22.40 billion, with hardware generating $11.2 billion, solutions contributing $6.4 billion, and services accounting for $4.8 billion.
• This growth trajectory persisted consistently, with total revenues reaching $25.90 billion in 2023, $29.30 billion in 2024, and a significant $35.4 billion in 2025.
• The hardware segment saw substantial expansion, reaching $17.5 billion in 2025. Alongside solutions at $10 billion and services at $7.6 billion.
• In the following years, this trend continued, with total revenue hitting $41.1 billion in 2026, $46.7 billion in 2027, and $51.1 billion in 2028. Underpinned by rising hardware, solutions, and services revenues.
• As the market advanced, 2029 witnessed total revenue surpassing $59.0 billion, with hardware, solutions, and services contributing $29.5 billion, $16.7 billion, and $12.7 billion, respectively.
• The momentum persisted through 2030, 2031, and 2032, culminating in a total market revenue of $90.6 billion. Driven by hardware revenue of $45.3 billion, solutions at $25.7 billion, and services generating $19.6 billion.
• These figures exemplify the enduring growth and significance of the global contactless payments market. Solidifying its position as a pivotal player in financial technology.

(Source: Market.us)

Regional Breakdown of Contactless Payments Usage

• Contactless payments are gaining widespread popularity globally.
• As per Statista, the Asia Pacific region became the largest market for contactless payments in 2020, boasting transaction values exceeding $1.5 trillion.
• Following closely behind was Europe, with its transaction values surpassing $1 trillion during the same year.

(Source: Statista)

Asia Pacific

• Indeed, beyond being the central hub for contactless payments, the Asia Pacific region is at the forefront of a swift expansion.
• Experts project that by 2025, over half of all transactions in this part of the world will rely on contactless methods.
• Notably, China is leading the global charge, with over 40% of all transactions across the globe occurring within its borders.
• Equally striking is the surge in the adoption of contactless payment systems in other nations within the region, such as Japan, South Korea, and Australia.
• This growing trend reflects a widespread shift towards the sheer convenience and efficiency that contactless payments bring to the table.

(Source: Statista)

Europe

• In recent years, contactless payments have been steadily gaining ground in Europe.
• According to Statista’s forecasts, the number of contactless payment users in Europe is expected to reach an impressive 300 million by the year 2022.
• Among the European nations, the United Kingdom stands out as a leader in this trend. With over 60% of all transactions now opting for contactless methods.
• Furthermore, we’re seeing a similar surge in the adoption of contactless payment systems in European countries like Poland, Spain, and France.
• This shift in payment preferences reflects the growing demand for the speed and convenience of contactless payments in our everyday financial dealings.

(Source: Statista)

North America

• Contactless payments are still emerging in North America but are gaining momentum rapidly.
• According to Finical, the projection is that contactless payments in the United States will experience a remarkable surge, reaching a substantial $1.5 trillion by 2024.
• Canada is also embracing this trend, with a noteworthy increase in the use of contactless payment methods. Currently, more than 50% of all transactions in Canada are carried out using this convenient payment method.
• This shift underlines the growing attraction of contactless payments in North America. Driven by their convenience and efficiency in everyday financial transactions.

(Source: Finical)

Latin America

• Certainly, contactless payments are becoming increasingly popular in Latin America. Brazil and Mexico taking the lead in embracing this payment method.
• According to Pomelo Pay, contactless payments in Brazil are anticipated to reach $10 billion by 2021.
• Meanwhile, Mexico has witnessed a remarkable surge in contactless payments. With usage surging by more than 50% over the past year.
• This trend highlights the growing preference for the convenience and efficiency of contactless payments in these vibrant Latin American economies.

(Source: Pomelo Pay)

Middle East and Africa

• Indeed, contactless payments are still in the early stages of adoption across the Middle East and Africa. Still, a clear and promising upward trend indicates rapid growth soon.
• Statista’s projections show a substantial anticipated increase in the transaction value of contactless payments in the Middle East and Africa, with an expected reach of $47 billion by 2024.
• Nations such as the United Arab Emirates, Saudi Arabia, and South Africa are leading the charge in this adoption.
• They serve as trailblazers for the broader region, embodying the growing enthusiasm and acceptance of contactless payment methods.
• These methods offer a convenient and secure way to conduct financial transactions. Resonating with consumers and businesses alike in the region.

(Source: Statista)

Demographic Insights on Contactless Payments

Contactless Payments Statistics According to Age

• Certainly, contactless payments have become increasingly favored by consumers spanning various age groups.
• In 2022, data from Finical illustrates that 45% of individuals aged 18-24 used contactless payments at least once a week, closely trailed by 44% of those in the 25-34 age bracket.
• In contrast, among consumers aged 65 and older, the utilization of contactless payments weekly was notably lower, with only 23% embracing this method.

(Source: Finical)

Contactless Payments Statistics According to Gender

• Regarding gender, men exhibit a slightly higher inclination for contactless payments than women. Although this gender difference is not particularly pronounced.
• Additionally, it’s pertinent to observe that urban areas witness higher adoption rates than rural regions, as indicated in the report’s findings.

(Source: Finical)

Contactless Payments Statistics According to Income

• Regarding income disparities, Statista’s research indicates that individuals with higher earnings are more disposed to use contactless payments.
• By 2025, it is predicted that consumers with annual incomes exceeding $75,000 will constitute a substantial 46.5% of all contactless payment users in the United States.

(Source: Statista)

Contactless Payments Statistics According to Education

• In educational attainment, Pomelo Pay’s report underscores that individuals with more advanced educational backgrounds are more inclined to embrace contactless payments.
• Specifically, those holding a bachelor’s degree or higher are 1.5 times more likely to opt for contactless payments than those with a high school diploma or lower educational level.
• In summary, contactless payments are witnessing a gradual surge in popularity across diverse demographic segments. Albeit with variations in adoption rates tied to age, gender, income, and educational level.
• As consumers become increasingly at ease with this technology and businesses expand their contactless payment offerings, it is plausible that adoption rates will continue to ascend.

(Source: Pomelo Pay)

Consumer Behavior and Contactless Payments

• Certainly, contactless payments have been on an upward trajectory in terms of popularity among consumers in recent years. As per a Juniper Research report, the total value of contactless payment transactions is anticipated to exceed $10 trillion by 2027. With an impressive 221% surge in contactless payments expected between 2022 and 2026.
• The COVID-19 pandemic was pivotal in expediting the embrace of contactless payments. Driven by heightened concerns about touching surfaces and handling physical cash.
• Notably, a 2022 survey by the National Retail Federation unveiled that 67% of retailers now offer contactless payment options, a significant increase from the 40% recorded in 2019.
• Furthermore, Federal Reserve research revealed that the utilization of contactless payments rose from 24% in 2019 to 31% in 2020.
• Consumers have articulated several reasons for their preference for contactless payments. Foremost among these is the convenience factor. Contactless payments are recognized for their speed and efficiency compared to traditional payment methods.
• Moreover, they eliminate the need for consumers to carry physical cash or cards, mitigating the risks associated with loss or theft.
• A Visa survey revealed that 77% of consumers perceive contactless payments as secure.
• Nonetheless, it’s important to acknowledge that despite the advantages of contactless payments. Some consumers retain concerns about their privacy and the security of their personal information.
• A study conducted by the Pew Research Center found that 51% of Americans harbor apprehensions about the extent of personal data collection when utilizing digital payment methods.
• However, as contactless payments continue to gain prevalence and consumers become more acquainted with the technology. It is foreseeable that these apprehensions will gradually diminish.

(Source: Juniper Research, National Retail Federation, Federal Reserve, Visa, Pew Research Center)

Contactless Payments and E-commerce Statistics

• Contactless payments have experienced a notable surge in usage, particularly in the context of the COVID-19 pandemic.
• As online shopping gained prominence, the adoption of contactless payments has seen a significant uptick, especially within the e-commerce sector.
• As reported by Fit Small Business, there’s an expectation that contactless payments will witness substantial growth, surpassing the $10 trillion mark by 2027.
• This projection includes an impressive 221% surge in contactless payments between 2022 and 2026. This growth can be largely attributed to the increasing prevalence of contactless-enabled point-of-sale (POS) systems, particularly within the e-commerce industry.
• Furthermore, the rising popularity of mobile payments in the e-commerce landscape is worth noting.
• Statista’s data reveals that in 2021, over four in 10 U.S. smartphone users had already embraced contactless payments at least once, with the United States experiencing a more significant increase in Near-Field Communication (NFC) technology adoption compared to other countries across the globe.

(Source: Fit Small Business, Statista)

Security Concerns and Contactless Payments

• Skimming and cloning are the most common security risks associated with contactless payments.
• Nearly a third of consumers familiar with contactless technology remain uninterested, citing security concerns.

(Source: Security Intelligence, McKinsey)

Future Trends in Contactless Payments Statistics

• As per insights from Forbes, the momentum behind mobile payments is poised to persist and gain further traction.
• This enduring trend is propelled by the rising ownership of smartphones among individuals and the convenience they offer for conducting payments.
• In tandem, adopting QR codes to facilitate contactless payments is on a sharp upward trajectory.
• Fit Small Business predicts a substantial 44% growth in the utilization of QR codes for payments between 2021 and 2025.
• Furthermore, the expansion of contactless payments is not limited to established markets; it is expected to extend globally. Especially in developing nations where cash remains the dominant mode of payment.
• According to PaymentsNext, contactless payments are anticipated to experience a robust 27% growth on a global scale in 2022.

(Source: Forbes, PaymentsNext, Fit Small Business)

Recent Developments

Acquisitions and Mergers:

• PayPal acquires Paidy: In 2023, PayPal completed its acquisition of Paidy, a Japanese buy-now-pay-later (BNPL) and contactless payments platform, for $2.7 billion. This acquisition enables PayPal to expand its contactless payments reach in Japan and Asia, further accelerating the adoption of digital wallets and contactless solutions.
• Square acquires Afterpay: In 2023, Square (Block) acquired Afterpay, a leading BNPL platform, for $29 billion. This move strengthens Square’s position in the contactless payments market by integrating Afterpay’s services into Square’s payment ecosystem, enhancing the customer experience for merchants and consumers alike.

New Product Launches:

• Apple introduces Tap to Pay on iPhone: In 2024, Apple launched its Tap to Pay on iPhone service, allowing merchants to accept contactless payments directly on their iPhones without additional hardware. This innovation streamlines payment acceptance for small businesses and is expected to significantly boost the adoption of contactless payments globally.
• Google Pay launches new features: In late 2023, Google Pay rolled out new features for contactless payments, including expanded loyalty rewards programs and integration with more transit systems worldwide. These features aim to enhance the usability and convenience of contactless payments, encouraging more users to adopt digital wallets.

Funding:

• Stripe raises $600 million in funding: In 2023, Stripe, a global payment processor, secured $600 million to expand its contactless payment infrastructure, particularly focusing on small businesses and underserved markets. This funding will help Stripe improve its platform’s ease of use for merchants accepting contactless payments.
• SumUp secures $750 million to grow contactless payment solutions: In 2024, SumUp, a leading fintech company specializing in contactless card readers, raised $750 million to expand its services across Europe and North America. The funds will be used to develop next-generation contactless payment terminals and enhance customer experiences.

Technological Advancements:

• Biometric contactless payments: Biometrics, such as fingerprint and facial recognition, are becoming more integrated into contactless payment solutions. By 2025, over 30% of contactless payment systems are expected to incorporate biometric authentication. Enhancing security and reducing fraud.
• Wearable contactless payment devices: The use of wearable devices like smartwatches and fitness trackers for contactless payments is growing. In 2024, the wearable payments market is projected to grow by 20%. Driven by consumer preference for convenient, touchless payment methods.

Market Dynamics and Adoption Rates:

• Global adoption of contactless payments: The use of contactless payments continues to rise globally, with over 50% of all global transactions expected to be contactless by 2025. The increased use of mobile wallets drives this growth, the expansion of contactless cards, and the shift toward cashless societies accelerated by the COVID-19 pandemic.
• North America and Europe leading the market: In 2023, North America and Europe accounted for over 60% of contactless payment transactions worldwide. The widespread use of contactless cards and mobile payment solutions. Particularly in retail and transit systems, has contributed to this dominance.

Conclusion

Contactless Payments Statistics – Technological advancements and changing consumer preferences fuel the remarkable transformation of the contactless payments landscape.

It underscores the widespread adoption of contactless payment methods, driven by convenience and security, with NFC, QR codes, and mobile wallets becoming preferred options across various transactions.

The global market has witnessed substantial growth, albeit with regional variations, propelled by key market players’ innovations and expansion efforts.

With diverse demographics embracing this technology, consumer acceptance and merchant infrastructure are critical factors, though security and privacy concerns persist.

The future holds promise with emerging technologies, but challenges such as interoperability and regulatory compliance must be addressed for continued success in this dynamic field.

FAQs

Discuss Your Needs With Our Analyst

Please share your requirements with more details so our analyst can check if they can solve your problem(s)

Request a Sample Download PDF