The Asia-Pacific Contactless Payment Market is projected to witness around 16% CAGR during 2021-26. Contactless payments offer several benefits like speed, security, and convenience, among others. Owing to this, a paradigm shift of customers toward these payment methods has been witnessed across Asia-Pacific in recent years.
In addition, the constant technological advancements & innovations in enhancing the payment security are other crucial aspects attributing to the burgeoning adoption of contactless payment solutions and boosting the market. Moreover, the extensive application of contactless payment for services like ticketing, fuel filling, vending machines, toll booths, etc., shall further drive the market across Asia-Pacific in the coming years.
The governments of different countries in the region are actively taking multiple initiatives with various plans & schemes toward promoting the adoption of digitalization & enhancing the network infrastructure with such smart solutions. Hence, more & more merchants are implementing advanced payment methods like contactless payment, thereby driving the market, further states the research report, “Asia-Pacific Contactless Payment Market Analysis, 2021.”
Rapid Digitalization in Banking, Financial Services, & Insurance Sector to Boost the Market during 2021-26
Amongst various End-Users, the Banking, Financial Services, & Insurance (BFSI) sector is anticipated to contribute to the substantial market growth during the forecast period. It owes principally to the increasing inclination of the BFSI sector toward digitalization to cater to services like quick transactions. In addition, various banks are actively integrating contactless payment mediums to expand their consumer base & gain a competitive edge in the market. Besides, organizations associated with this sector are introducing their mobile banking platforms to allow users to make contactless transactions using these applications.
in 2019, RBL Bank, MasterCard, and Samsung India altogether announced Samsung Pay for RBL credit cardholders, allowing them to make contactless payments using the application cited above enabled in their smartphones. These payments can be made through any Point of Sale machine across India & abroad, without the physical presence of the card.
Increasing Inclination toward UPI & Mobile Wallet-based Transactions across India Drives the Asia-Pacific Contactless Payment Market
Geographically, India is projected to demonstrate rapid market growth during 2021-26 due to the swift adoption of contactless payment methods in the country, especially after the imposition of demonetization by the Indian government in 2016. It was also when the government started promoting digitalization in the country. Later, with the emergence of the Covid-19 pandemic, a significant section of people shifted toward contactless payments, where mobile wallets & UPI-based transactions as the most preferred options. Besides, various government schemes & plans for developing enhanced contactless payment infrastructure are also expected to boost the market in the coming years.
For instance: The Payments Infrastructure Development Fund (PIDF) scheme of the Reserve Bank of India subsidized the deployment of Points of Sale (PoS) infrastructure (physical & digital modes) across Tier 3, 4, 5, & 6 centers & Northeastern states from January 01, 2021. Later, from August 26, 2021, the beneficiaries of PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi Scheme) in Tier 1 & 2 are also covered.
Key Market Competitors
According to MarkNtel Advisors, the leading players in the Asia-Pacific Contactless Payment Market are Alipay, Grabpay, Renesas Electronics Corporation, Paytm, Verifone Systems, Inc., Rakuten Pay, INSIDE Secure, Ingenico Group S.A., Gemalto NV, Heartland Payment Systems, IBM Corp., Infineon Technologies AG, Valitor HF, Wirecard AG, and Visa Inc.
Key questions answered in the study: