Europe Contactless Payments Market Forecast to 2031 - Regional Analysis - by Payment Mode, Components, and Industry Verticals

The Europe contactless payments market was valued at US$ 4.72 billion in 2023 and is expected to reach US$ 13.16 billion by 2031; it is estimated to register a CAGR of 13.7% from 2023 to 2031.

Efficiency and Cost-Effectiveness of Contactless Payments Drive Europe Contactless Payments Market

Contactless payment technologies enable transactions through contactless chips embedded in payment cards, tags, wearables, and mobile phones. The contactless payment offers quick approvals from banks, and the money is transferred to the account instantly. This reduces the waiting time and hassle for both consumers and merchants and improves the efficiency and convenience of payments. The contactless payment allows the automation of monthly payments to save time and effort and get cashback. Also, the contactless payment option has low processing fees.

Maintaining their books is a major issue for many restaurant owners. One way to help restaurants save money is to allow guests to use touchless payment methods, which have lower credit card processing fees than manually keyed-in payments. Moreover, contactless payment speeds up transactions. Speeding up the payment method is especially useful when there is a high volume of crowds.

For example, Barclaycard provides contactless credit cards; through the card, the transactions take half a second to process, which is seven times faster than requiring guests to pay with a chip card and enter a PIN. Using a contactless payment method is also more advantageous. Thus, efficiency and cost-effectiveness of contactless payments are driving the growth of the contactless payment market.

Europe Contactless Payments Market Overview

The adoption of contactless payment methods among merchants and businesses in Europe is driven by various factors, including the requirement for convenient and secure payment options, the need to streamline operations, and the rise in demand from consumers. One of the key drivers of the contactless payments market in Europe is the revised Payment Services Directive 2 (PSD2). This directive aims to contribute to a more integrated and efficient contactless payment market in Europe, fostering competition and innovation. The implementation of PSD2 has paved the way for the widespread adoption of contactless payment technologies by merchants across the region.

Europe Contactless Payments Market Revenue and Forecast to 2031 (US$ Million)

Europe Contactless Payments Market Segmentation

The Europe contactless payments market is categorized into payment mode, components, industry verticals, and country.

Based on payment mode, the Europe contactless payments market is divided into smartphones, smart cards, pos terminals, and others. The smartphones segment held the largest Europe contactless payments market share in 2023.

In terms of components, the Europe contactless payments market is segmented into hardware, solutions, and services. The hardware segment held the largest Europe contactless payments market share in 2023.

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 the largest Europe contactless payments market share in 2023.

Based on country, the Europe contactless payments market is categorized into Germany, the UK, France, Italy, Russia, and the Rest of Europe. The Rest of Europe dominated the Europe contactless payments market share in 2023.

Thales SA, Infineon Technologies AG, Ingenico Group SA, Giesecke+Devrient GmbH, IDEMIA France SAS, PAX Technology, SumUp Inc, Visa Inc, and Mastercard Inc are some of the leading companies operating in the Europe contactless payments market.

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