Mobile Proximity Payments Market Report 2025

The mobile proximity payments market size has grown rapidly in recent years. It will grow from $14.55 billion in 2024 to $17.27 billion in 2025 at a compound annual growth rate (CAGR) of 18.7%. In the historic period, growth was driven by the increasing penetration of smartphones, rising consumer demand for faster and contactless transactions, growing government initiatives to promote digital payments, the expansion of e-commerce and retail adoption of mobile payments, and heightened awareness of payment security and convenience.

The mobile proximity payments market size is expected to see rapid growth in the next few years. It will grow to $33.86 billion in 2029 at a compound annual growth rate (CAGR) of 18.3%. In the forecast period, growth is expected to be fueled by the rising adoption of near field communication-enabled devices, increasing consumer preference for convenience and transaction speed, supportive government policies encouraging cashless payments, the expansion of wearable payment technologies and mobile wallets, and growing demand for biometric authentication and advanced security protocols. Key trends anticipated in the forecast period include advancements in near-field communication and biometric authentication, the development of wearable payment devices, innovations in mobile wallet technology, integration of the Internet of Things for seamless transactions, and greater adoption across retail and e-commerce sectors.

The increasing adoption of smartphones is anticipated to drive the growth of the mobile proximity payments market in the coming years. Smartphones are portable electronic devices that combine mobile telephone functions with computing capabilities, enabling users to carry out a variety of digital activities, including payments. The rise in smartphone usage is largely supported by the expansion of digital infrastructure in developing and semi-urban areas, where affordable internet services and budget-friendly devices are making smartphones accessible to previously underserved populations. Smartphones incorporate proximity sensors to detect nearby objects and switch off the screen during calls, conserving power and preventing accidental touches. For example, in February 2023, according to the GSM Association (GSMA), a UK-based industry organization representing mobile network operators and related companies, smartphone penetration in sub-Saharan Africa is expected to increase significantly, reaching 87% by 2030, up from 51% in 2022, highlighting rapid digital adoption in the region. As a result, the growing adoption of smartphones is fueling the expansion of the mobile proximity payments market.

Major companies in the mobile proximity payment market are focusing on launching innovative solutions, such as contactless payment technologies, to enhance early fraud detection, improve operational efficiency, and optimize resource allocation within payment systems. Contactless payment solutions involve advanced, data-driven tools and strategies aimed at prioritizing fraud detection and operational oversight based on the risk levels of specific transaction types, user behaviors, or merchant categories. For instance, in June 2024, Much Better, a UK-based wearable pay tech provider, introduced a new contactless payment ring as part of its Much Better ADD suite, designed to make everyday payments more convenient, secure, and accessible for users. The ceramic ring utilizes a proprietary IoT platform to transform standard wearables into secure, tokenized payment and identification devices. Customers can obtain the ring for free by loading it through the Much Better digital wallet app, directly competing with traditional retail pricing for similar wearable payment products.

In September 2022, Poste Italiane S.p.A., an Italy-based mobile proximity payment technology company, acquired LIS Holding S.p.A. for an undisclosed amount. This acquisition aims to enhance Poste Italiane’s presence in the rapidly growing payments market, particularly in digital and proximity payments, and to advance its integrated omnichannel strategy through its payment subsidiary, Postepay. The addition of LIS Holding’s proprietary technology platform, network integration, and advanced security and compliance capabilities further strengthens the company’s offerings. LIS Holding S.p.A. is an Italy-based proximity payments company.

Major players in the mobile proximity payments market are Apple Inc., Samsung Electronics Co. Ltd., Tencent Holdings Limited, American Express Company, Vodafone Group Plc, Orange S.A., Barclays PLC, Visa Inc., PayPal Holdings Inc., Mastercard Incorporated, NXP Semiconductors N.V., Fidelity National Information Services Inc., Block Inc., IDEMIA France SAS, Ant Group Co. Ltd. (Alipay), ACI Worldwide Inc., Ingenico Group S.A., China UnionPay Co. Ltd., Discover Financial Services, Wise plc, and Kakapo Pay.

North America was the largest region in the mobile proximity payments market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in mobile proximity payments report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the mobile proximity payments market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s recommendations and conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the financial sector, particularly in investment strategies and risk management. Heightened tariffs have fueled market volatility, prompting cautious behavior among institutional investors and increasing demand for hedging instruments. Banks and asset managers are facing higher costs associated with cross-border transactions, as tariffs disrupt global supply chains and dampen corporate earnings, key drivers of equity market performance. Insurance companies, meanwhile, are grappling with increased claims risks tied to supply chain disruptions and trade-related business losses. Additionally, reduced consumer spending and weakened export demand are constraining credit growth and investment appetite. The sector must now prioritize diversification, digital transformation, and robust scenario planning to navigate the heightened economic uncertainty and protect profitability.

Mobile proximity payments are a payment method in which consumers use mobile devices, such as smartphones or wearables, to complete contactless transactions at physical points of sale. These transactions rely on technologies that enable fast, secure, and touch-free payments between devices and payment terminals.

The primary types of mobile proximity payments include contactless payment, magnetic stripe payment, and chip-based payment. Contactless payment is a secure transaction method where payment is made by tapping a payment card or mobile device near a point-of-sale terminal using near field communication (NFC) or radio-frequency identification (RFID) technology. Such payments can be carried out using various devices, including smartphones, smartwatches, tablets, and other wearables, and employ technologies such as NFC, quick response (QR) codes, and Bluetooth. They are used in a range of applications, including in-store payments, online purchases, peer-to-peer transfers, and bill payments, serving end users in sectors such as retail, hospitality, transportation, and healthcare.

The mobile proximity payments market research report is one of a series of new reports that provides mobile proximity payments market statistics, including the mobile proximity payments industry global market size, regional shares, competitors with the mobile proximity payments market share, detailed mobile proximity payments market segments, market trends, and opportunities, and any further data you may need to thrive in the mobile proximity payments industry. This mobile proximity payments market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The mobile proximity payments market consists of revenues earned by entities by providing services such as transaction authentication services, biometric verification for payments, real-time payment notifications, and alerts. The market value includes the value of related goods sold by the service provider or included within the service offering. The mobile proximity payments market also includes sales of contactless payment terminals, payment gateway software, digital transaction management tools, quick response code scanners and generators. 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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