At 14.5% CAGR, Asia Pacific Contactless Payments Market is Projected to be Worth US$ 47,960.34 Million by 2031, says Business Market Insights

According to Business Market Insights' research, the Asia Pacific contactless payments market was valued at US$ 16,269.06 million in 2023 and is expected to reach US$ 47,960.34 million by 2031, registering a CAGR of 14.5% from 2023 to 2031. Efficiency and cost-effectiveness of contactless payments and technological advancements in contactless payments are among the critical factors attributed to drive the Asia Pacific contactless payments market growth.

Contactless payment technologies enable transactions through contactless chips embedded in payment cards, tags, wearables, and mobile phones. The contactless payment offers quick approvals from banks, and the money is transferred to the account instantly. This reduces the waiting time and hassle for both consumers and merchants and improves the efficiency and convenience of payments. The contactless payment allows the automation of monthly payments to save time and effort and get cashback. Also, the contactless payment option has low processing fees.

Maintaining their books is a major issue for many restaurant owners. One way to help restaurants save money is to allow guests to use touchless payment methods, which have lower credit card processing fees than manually keyed-in payments. Moreover, contactless payment speeds up transactions. Speeding up the payment method is especially useful when there is a high volume of crowds. For example, Barclaycard provides contactless credit cards; through the card, the transactions take half a second to process, which is seven times faster than requiring guests to pay with a chip card and enter a PIN. Using a contactless payment method is also more advantageous. Thus, efficiency and cost-effectiveness of contactless payments are driving the growth of the contactless payment market.

On the contrary, potential security concerns and limitations hamper the growth of Asia Pacific contactless payments market.

Based on payment mode, the Asia Pacific contactless payments market is divided into smartphones, smart cards, pos terminals, and others. The smartphones segment held 53.6% market share in 2023, amassing US$ 8,727.26 million. It is projected to garner US$ 27,694.50 million by 2031 to register 15.5% CAGR during 2023-2031.

In terms of components, the Asia Pacific contactless payments market is segmented into hardware, solutions, and services. The hardware segment held 49.4% share of Asia Pacific contactless payments market in 2023, amassing US$ 8,038.96 million. It is anticipated to garner US$ 23,450.21 million by 2031 to expand at 14.3% CAGR during 2023-2031.

By industry verticals, the Asia Pacific contactless payments market is divided into retail, hospitality, healthcare, transportation and logistics, media and entertainment, and others. The retail segment held 48.9% share of Asia Pacific contactless payments market in 2023, amassing US$ 7,949.61 million. It is projected to garner US$ 24,660.33 million by 2031 to expand at 15.2% CAGR from 2023 to 2031.

Based on country, the Asia Pacific contactless payments market is categorized into Australia, India, China, Japan, South Korea, and the Rest of Asia Pacific. Our regional analysis states that China captured 44.2% share of Asia Pacific contactless payments market in 2023. It was assessed at US$ 7,196.29 million in 2023 and is likely to hit US$ 22,332.73 million by 2031, registering a CAGR of 15.2% during 2023-2031.

Key players operating in the Asia Pacific contactless payments market are Thales SA, Infineon Technologies AG, Ingenico Group SA, IDEMIA France SAS, PAX Technology, Visa Inc, and Mastercard Inc. among others.

• In February 2023, Infineon Technologies AG is driving the development forward with its SECORA Connect portfolio. New, robust chips whose smallest versions are less than half the size of ladybugs open up unprecedented possibilities for manufacturers to turn even small everyday objects into contactless Middle East & Africans of payment.
• In October 2023, IDEMIA, the global provider of augmented identity, has added a contactless full metal card to its extensive portfolio of payment solutions. The launch follows MasterCard's recent mandate to issue dual interface (contact and contactless) cards and a rising demand for metal cards.
  
  

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