At 10.5% CAGR, Middle East & Africa Contactless Payments Market is Projected to be Worth US$ 5,554.05 Million by 2031, says Business Market Insights

According to Business Market Insights’ research, the Middle East & Africa contactless payments market was valued at US$ 2,505.03 million in 2023 and is expected to reach US$ 5,554.05 million by 2031, registering a CAGR of 10.5% from 2023 to 2031. Increase in government initiatives to promote digital payments and technological advancements in contactless payments are among the critical factors attributed to drive the Middle East & Africa contactless payments market growth.

Various governments across the globe are promoting the use of digital payments. In 2020, central banks in the UAE, Bahrain and Kuwait increased the contactless transaction limits in their countries to combat the spread of COVID-19. In the UAE, the limit was increased to US$ 136.13 from US$ 81.68. In Kuwait, it has risen to US$ 80.73 from US$ 32.29. In Bahrain, the limit has been increased from US$ 52.90 to US$ 132.24. The region has witnessed rapid technological advancements, including the widespread availability of smartphones and mobile internet connectivity. Further, payment providers, financial institutions, and technology companies in the region have formed strategic partnerships and collaborations to enhance the adoption and acceptance of contactless payments. For instance, in 2022, Mastercard partnered with noqodi to expand digital payment acceptance across the UAE. noqodi is a leading fintech company owned by emaratech Group, part of the Investment Corporation of Dubai. This partnership will enable consumers in Dubai to make seamless and safe contactless payments for select government and private sector services. Such government initiatives to promote digital payments drive the contactless payment market.

On the contrary, potential security concerns and limitations hamper the growth of Middle East & Africa contactless payments market.

Based on payment mode, the Middle East & Africa contactless payments market is divided into smartphones, smart cards, pos terminals, and others. The smartphones segment held 44.2% market share in 2023, amassing US$ 1,107.91 million. It is projected to garner US$ 2,661.46 million by 2031 to register 11.6% CAGR during 2023–2031.

In terms of components, the Middle East & Africa contactless payments market is segmented into hardware, solutions, and services. The hardware segment held 49.1% share of Middle East & Africa contactless payments market in 2023, amassing US$ 1,229.45 million. It is anticipated to garner US$ 2,681.69 million by 2031 to expand at 10.2% CAGR during 2023–2031.

By industry verticals, the Middle East & Africa contactless payments market is divided into retail, hospitality, healthcare, transportation and logistics, media and entertainment, and others. The retail segment held 44.6% share of Middle East & Africa contactless payments market in 2023, amassing US$ 1,116.96 million. It is projected to garner US$ 2,625.29 million by 2031 to expand at 11.3% CAGR from 2023 to 2031.

Based on country, the Middle East & Africa contactless payments market is categorized into Saudi Arabia, South Africa, the UAE, and the Rest of Middle East & Africa. Our regional analysis states that the Rest of Middle East & Africa captured 38.8% share of Middle East & Africa contactless payments market in 2023. It was assessed at US$ 971.28 million in 2023 and is likely to hit US$ 2,322.87 million by 2031, registering a CAGR of 11.5% during 2023–2031.

Key players operating in the Middle East & Africa 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 means 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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