At 9.7% CAGR, South & Central America Contactless Payments Market is Projected to be Worth US$ 2,794.47 Million by 2031, says Business Market Insights

According to Business Market Insights' research, the South & Central America contactless payments market was valued at US$ 1,330.97 million in 2023 and is expected to reach US$ 2,794.47 million by 2031, registering a CAGR of 9.7% 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 South & Central 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. 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 South & Central America contactless payments market.

Based on payment mode, the South & Central America contactless payments market is divided into smartphones, smart cards, pos terminals, and others. The smartphones segment held 46.1% market share in 2023, amassing US$ 612.94 million. It is projected to garner US$ 1,384.31 million by 2031 to register 10.7% CAGR during 2023-2031.

In terms of components, the South & Central America contactless payments market is segmented into hardware, solutions, and services. The hardware segment held 51.8% share of South & Central America contactless payments market in 2023, amassing US$ 688.92 million. It is anticipated to garner US$ 1,423.81 million by 2031 to expand at 9.5% CAGR during 2023-2031.

By industry verticals, the South & Central America contactless payments market is divided into retail, hospitality, healthcare, transportation and logistics, media and entertainment, and others. The retail segment held 43.2% share of South & Central America contactless payments market in 2023, amassing US$ 574.76 million. It is projected to garner US$ 1,283.16 million by 2031 to expand at 10.6% CAGR from 2023 to 2031.

Based on country, the South & Central America contactless payments market is categorized into Brazil, Argentina, and the Rest of South & Central America. Our regional analysis states that Brazil captured 45.5% share of South & Central America contactless payments market in 2023. It was assessed at US$ 605.64 million in 2023 and is likely to hit US$ 1,180.38 million by 2031, registering a CAGR of 8.7% during 2023-2031.

Key players operating in the South & Central America contactless payments market are Thales SA, Infineon Technologies AG, Ingenico Group SA, IDEMIA France SAS, PAX Technology, SumUp Inc, 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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