At 13.7% CAGR, Europe Contactless Payments Market is Projected to be Worth US$ 13,167.22 Million by 2031, says Business Market Insights

According to Business Market Insights’ research, the Europe contactless payments market was valued at US$ 4,728.87 million in 2023 and is expected to reach US$ 13,167.22 million by 2031, registering a CAGR of 13.7% 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 Europe contactless payments market growth.

NFC is used for contactless payments. The process of holding a chipped card or smartphone directly against the reader provides an extra layer of security, making contactless payments safe and secure. NFC is the technology used by smartphones that have enabled mobile wallets, such as ApplePay. Contactless payment enables faster transactions and increased customer satisfaction and loyalty, as well as the adoption of new payment technologies, such as NFC and others, which facilitate machine-to-machine communication and IoT integration. Some cards are equipped with NFC technology that allows them to be tapped or waved near a receptive card reader for contactless payment. Customers tap or wave their mobile device near an NFC-equipped card reader, just like they would with an NFC-enabled credit card. Also, the EMV (short for Europay, Mastercard, and Visa) chip is the physical "antennae" necessary for RFID/NFC contactless payments using credit cards. While all EMV chips are capable of NFC contactless payments, the ability to do such a transaction relies on the payee. If the PoS or farebox collecting the payment cannot process NFC payments, the chip is then used by inserting the card into the reader. Thus, technological advancements in contactless payment are expected to provide an opportunity for the contactless payment market.

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

Based on payment mode, the Europe contactless payments market is divided into smartphones, smart cards, pos terminals, and others. The smartphones segment held 46.2% market share in 2023, amassing US$ 2,184.26 million. It is projected to garner US$ 6,552.78 million by 2031 to register 14.7% CAGR during 2023–2031.

In terms of components, the Europe contactless payments market is segmented into hardware, solutions, and services. The hardware segment held 53.0% share of Europe contactless payments market in 2023, amassing US$ 2,505.67 million. It is anticipated to garner US$ 6,894.91 million by 2031 to expand at 13.5% CAGR during 2023–2031.

By industry verticals, the Europe contactless payments market is divided into retail, hospitality, healthcare, transportation and logistics, media and entertainment, and others. The retail segment held 46.2% share of Europe contactless payments market in 2023, amassing US$ 2,187.00 million. It is projected to garner US$ 6,571.41 million by 2031 to expand at 14.7% CAGR from 2023 to 2031.

Based on country, the Europe contactless payments market is categorized into Germany, the UK, France, Italy, Russia, and the Rest of Europe. Our regional analysis states that the Rest of Europe captured 33.2% share of Europe contactless payments market in 2023. It was assessed at US$ 1,568.95 million in 2023 and is likely to hit US$ 4,667.91 million by 2031, registering a CAGR of 14.6% during 2023–2031.

Key players operating in the Europe contactless payments market are Thales SA, Infineon Technologies AG, Ingenico Group SA, Giesecke+Devrient GmbH, 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 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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