Contactless Payment Market Report 2026

The contactless payment market size has grown exponentially in recent years. It will grow from $69.7 billion in 2025 to $84.2 billion in 2026 at a compound annual growth rate (CAGR) of 20.8%. The growth in the historic period can be attributed to increasing demand for faster checkout experiences, expansion of pos terminal deployment, rising card penetration rates, growing urban transportation digitization, improvements in payment network infrastructure.

The contactless payment market size is expected to see rapid growth in the next few years. It will grow to $160.75 billion in 2030 at a compound annual growth rate (CAGR) of 17.5%. The growth in the forecast period can be attributed to increasing adoption of biometric contactless authentication, expansion of contactless payments in emerging markets, rising integration with smart city infrastructure, growing demand for low-latency transactions, continuous advancements in payment security technologies. Major trends in the forecast period include accelerated adoption of tap-and-go payments, rising use of wearable payment devices, expansion of contactless transit payments, growing merchant acceptance of nfc terminals, enhanced fraud prevention capabilities.

The growing demand for mobile payment devices is anticipated to drive the expansion of the contactless payment market in the coming years. Mobile payment devices generally include smartphones, tablets, or specialized hardware that allow users to conduct transactions through digital wallets or payment applications. This increasing demand is largely fueled by ease of use, enhanced security, and the rapid digitization of commercial activities. Mobile payment devices support contactless transactions through near-field communication (NFC) technology, enabling users to complete payments by tapping their device on a compatible terminal. For example, in March 2024, ConsumerAffairs, a US-based consumer news and advocacy organization, reported that smartphone ownership in the United States rose to 92% in 2023, up from 86% in 2022. Furthermore, it was projected that in 2024, American adults would spend an average of more than 4.5 hours per day using their mobile devices. As a result, the increasing demand for mobile payment devices is contributing significantly to the growth of the contactless payment market.

Key players in the contactless payments market are focusing on developing innovative products such as tokenizable payment wearables to improve convenience and enable seamless transactions for consumers. Tokenizable wearable devices enhance security and privacy by generating one-time tokens for transactions. For instance, in March 2024, IndusInd Bank Limited launched Indus PayWear, an all-in-one tokenizable wearable device for contactless payments using debit and credit cards in India. This device allows users to tokenize their IndusInd Bank cards onto a chip-enabled wearable, facilitating secure tap-and-pay transactions at contactless terminals globally without needing physical cards or payment apps.

In March 2023, Ingenico Group S.A., a France-based payment technology company, acquired Phos Mobile S.A.S. for an undisclosed sum. Through this acquisition, Ingenico Group S.A. sought to accelerate its transition toward software-centric payment services and broaden its merchant payment acceptance portfolio by incorporating advanced SoftPoS (software-only point-of-sale) capabilities. Phos Mobile S.A.S. is a France-based software technology firm specializing in highly adaptable SoftPoS solutions that allow smartphones and tablets to operate as secure payment terminals for a diverse range of merchants and partners.

Major companies operating in the contactless payment market are Apple Inc., American Express Company, Visa Inc., PayPal Holdings Inc., Mastercard Incorporated, Fiserv Inc., Square Inc., Stripe Inc., Intuit Inc., Adyen N.V., Global Payments Inc., Shopify Inc., Worldline, Klarna Bank AB, Ingenico Group, SumUp Inc., Verifone Inc., PayU, First Data Corporation, UnionPay International Co. Ltd., Wirecard AG.

North America was the largest region in the contactless payment market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the contactless payment market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the contactless payment market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The contactless payment market consists of revenues earned by entities by providing services such as security features, loyalty program integration, mobile wallet integration, and payment acceptance. The market value includes the value of related goods sold by the service provider or included within the service offering. The contactless payment market also includes sales of wearable devices, point-of-sale (POS) systems, payment cards, and near-field communication (NFC) readers. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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