At 12.9% CAGR, North America Contactless Payments Market is Projected to be Worth US$ 22,326.35 Million by 2031, says Business Market Insights

According to Business Market Insights' research, the North America contactless payments market was valued at US$ 8,432.17 million in 2023 and is expected to reach US$ 22,326.35 million by 2031, registering a CAGR of 12.9% from 2023 to 2031. Voice-based payments with voice match confirmation and technological advancements in contactless payments are among the critical factors attributed to drive the North America contactless payments market growth.

Powered by machine learning (ML), artificial intelligence (AI), and neural language processing (NLP), voice assistants help accomplish tasks more easily in everyday life. Voice interaction is heading toward the finance industry. For instance, institutions such as the Royal Bank of Canada have already initiated voice payments via Siri. Voice payment is the process of speaking to an AI-powered device, such as a smartphone or speaker, and requesting it to make a payment. The device will identify the verbal request, act on it, and react with a confirmation.

A unique voice model is created on Google's servers and stored only on the devices where one has enabled Voice Match. Without a match, the device will treat the query as a guest query and will not provide any personal results. Google has introduced a new "confirm with Voice Match" payment feature in the Google Assistant for smart speakers and displays, redefining contactless payments. Thus, voice-based payments with Voice Match confirmation are expected to be a new trend in the contactless payment market.

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

Based on payment mode, the North America contactless payments market is divided into smartphones, smart cards, pos terminals, and others. The smartphones segment held 40.1% market share in 2023, amassing US$ 3,379.05 million. It is projected to garner US$ 9,762.38 million by 2031 to register 14.2% CAGR during 2023-2031.

In terms of components, the North America contactless payments market is segmented into hardware, solutions, and services. The hardware segment held 49.6% share of North America contactless payments market in 2023, amassing US$ 4,179.66 million. It is anticipated to garner US$ 10,906.26 million by 2031 to expand at 12.7% CAGR during 2023-2031.

By industry verticals, the North America contactless payments market is divided into retail, hospitality, healthcare, transportation and logistics, media and entertainment, and others. The retail segment held 35.7% share of North America contactless payments market in 2023, amassing US$ 3,009.10 million. It is projected to garner US$ 9,168.02 million by 2031 to expand at 14.9% CAGR from 2023 to 2031.

Based on country, the North America contactless payments market is categorized into the US, Canada, and Mexico. Our regional analysis states that the US captured 79.4% share of North America contactless payments market in 2023. It was assessed at US$ 6,695.31 million in 2023 and is likely to hit US$ 17,782.94 million by 2031, registering a CAGR of 13.0% during 2023-2031.

Key players operating in the North America contactless payments market are Thales SA, Infineon Technologies AG, Ingenico Group SA, IDEMIA France SAS, PAX Technology, SumUp Inc, Visa Inc, Mastercard Inc, and CPI Card Group 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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