Asia Pacific Contactless Payment

Asia Pacific Contactless Payment Market Research Report: Forecast (2021-2026)

By Devices (Smartphones, Smart Cards, Point of Sale Terminals, Other), By Technology (NFC, RFID, IR), By End-User (Retail, BFSI, Healthcare, Telecom & IT, Entertainment & Media, Hospitality & Restaura Read more

  • FinTech
  • Dec 2021
  • 176
  • FT33007

Market Definition

Contactless payment is a convenient transaction method that allows the user to make payments using Radio Frequency Identification (RFID) technology, without the need to swipe or enter PIN for transactions. Contactless payment offers substantial advantages to consumers & businesses. Some of which include:

  • Quicker transactions and shorter payment queues
  • Safer transactions
  • The flexibility of payment devices
  • Numerous discounts & loyalty points, etc.
Report Coverage Details
Study Period Historical Data: 2016-20
Base Year: 2020
Forecast Period: 2021-26
CAGR (2021-26) 16%
Countries Covered China, Japan, South Korea, Australia, India, South East Asia, Malaysia, Singapore
Key Companies Profiled 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, Visa Inc., etc.
Unit Denominations USD Million/Billion

Market Insights

The Asia-Pacific Contactless Payment Market is projected to grow at a CAGR of around 16% during the forecast period, i.e., 2021-26. The market is driven primarily by the facility of contactless payment solutions to offer services like instant money transfer & an efficient alternative for cash-based payments, coupled with the mounting adoption of smartphones and extensively available high-speed data networks.

In addition, the growing e-commerce businesses and the inclination of several countries toward digitalization are other crucial aspects encouraging the use of contactless payments and driving the market. Besides, new offerings like point redemption, loyalty rewards, & other schemes by prominent market players to expand customer base & gain a competitive edge shall also fuel the overall market growth in the coming years. 

Moreover, advantages like secure & integrated payments, real-time transaction processing & updates, instant transfers, etc., are encouraging more & more people to adopt contactless payment methods and fuel the market across Asia-Pacific.

Asia Pacific Contactless Payment Market Share

Impact of Covid-19 on the Asia-Pacific Contactless Payment Market

The Covid-19 had a decelerating impact on most countries across Asia-Pacific. However, the Contactless Payment Market observed an upswing amidst the crisis. The governments imposed stringent movement restrictions & frequent lockdowns to curb the virus spread. Despite this, essential shops & pharmacies were permitted to remain operational.

The severity of the pandemic led to alarming concerns for the virus spread, due to which people retained to touch things, including cash. Consequently, economies observed a change in transaction modes and witnessed an increasing inclination toward contactless payments.

Besides, people working from home also displayed a swift rise in online shopping, using such payment methods, which fueled the demand for transaction mediums like QR code, tap to pay using Near Field Communication (NFC), etc.

Moreover, even with the gradual reduction in the number of Covid-19 cases, a vast majority of consumers are using contactless payment methods to maintain safety & hygiene. Hence, the market is anticipated to gain rapid growth during & even after the pandemic.

Market Segmentation

Based on the End-User:

  • Retail
  • BFSI (Banking, Financial Services, & Insurance)
  • Healthcare
  • Telecom & IT
  • Entertainment & Media
  • Hospitality & Restaurant
  • Transportation

Of them all, BFSI is anticipated to demonstrate substantial market growth in the coming years, owing to the increasing inclination toward digitalization for instant transaction services. Several banks are promoting the use of contactless payment methods by offering rewards, loyalty points, etc. & integrating different mediums to expand their user base & gain a competitive edge in the industry. 

For instance: the BFSI sector is also using payment platforms like Google Pay, PayPal, BHIM, Paytm, etc., allowing users to make transactions without needing to add money to the wallet but directly transferring to the receiver's account. 

On the other hand, the Retail sector is projected to dominate the market with the largest share in the coming years. It owes to the swiftly rising number of retail shops across countries, especially in urban areas, due to the growing consumer preference toward in-store shopping. Hence, the retail shops are actively integrating contactless payment mediums like QR codes & NFC tags better customer experience with an efficient way of payments. Besides, the adoption of technologies like cloud computing, big data, social networking, online stores, etc., to expand its scalability & promote the adoption of contactless payments to exercise benefits like reduced transaction time, instant payments, lower operation costs, among others. 

Based on Devices:

  • Smartphones
  • Smart Cards
  • Point of Sale Terminals

Of them all, Point of Sale (PoS) devices are anticipated to observe substantial market growth during the forecast period. POS is an electronic device at retail shops, where the customer makes the payment to retailers. The market growth for PoS devices owes to their benefits like efficient usability, easy mobility, and less dependency on costs, thereby changing customers' way of making transactions. 

Country Landscape

On the geographical front, the Asia-Pacific Contactless Payment Market expands across:

  • India
  • China
  • Australia
  • South Korea
  • South-East Asia
  • Japan
  • Singapore
  • Malaysia

Of them all, the contactless payment market in India is projected to be significantly growing in the coming years, principally due to the accelerating adoption of contactless payment methods, especially since the government has imposed demonetization. Besides, the effects of the Covid-19 virus & the concerns associated with its spread further encourage the public to use such payments. Moreover, various government initiatives to promote digitalization across the country are also anticipated to fuel the overall market growth in the coming years.

For instance: 

  • With initiatives like Cashless India by the government to promote applications like BHIM UPI, the market for mobile payment is expected to rise and benefit the Asia-Pacific Contactless Payment Market. The Reserve Bank of India proposed a set-up of alternative digital retail payments organizations to prevent a monopoly in a system currently dominated by the National Payments Corporation of India Ltd. (NPCI).
     
  • The Reserve Bank of India's scheme Payments Infrastructure Development Fund (PIDF) subsidized the deployment of Points of Sales (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.

On the other hand, China is expected to acquire the largest market share in the coming years owing to its vast population base adopting smartphones, coupled with expanding e-commerce, online shopping, and the availability of new payment solutions. 

Recent Developments by Leading Players

  • In January 2019, Industrial & Commercial Bank of China (ICBC) announced an agreement with Gemalto (Thales Group) to continue providing contactless cards owing to the swiftly rising adoption of digital transactions in the country. This dual interface card enables the user to make transactions by inserting or tapping at the Point of Sales.

Market Dynamics:

Key Drivers

Artificial Intelligence to Fuel the Market Growth

Constant technological advancements in contactless payment services like the integration of Artificial Intelligence (AI) to store information like buying behavior, rewards applied, etc., & provide payment solutions to retailers are expected to drive the market through 2026.

Growth Restraint

The Convenience of Using Cash Might Restraint the Contactless Payment Market in Asia-Pacific

Contactless payments have a plethora of benefits. However, several end-users still rely on cash for day-to-day activities. Besides, due to the years of using cash as a mode of payment, people are also reluctant in adopting new technologies like contactless payment methods. Moreover, personal data like balance amount, location, PINs, and other insights raise risks of unauthorized use & security concerns, which might hinder the market growth.

Competitive Landscape

According to MarkNtel Advisors’, the key players with a considerable market share in the Asia-Pacific Contactless Payment market include 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, Visa Inc. etc.

Key Questions Answered in the Asia-Pacific Contactless Payment Market Research Report:

  1. What are the overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares) of the Asia-Pacific Contactless Payment Market?
  2. What are the country-wise industry size, growth drivers, and challenges?
  3. What are the key innovations, opportunities, current & future trends, and regulations in the Asia-Pacific Contactless Payment Market?
  4. Who are the key competitors, their key strengths & weaknesses, and how do they perform in the Asia-Pacific Contactless Payment Market based on the competitive benchmarking matrix?
  5. What are the key results derived from surveys conducted during the Asia-Pacific Contactless Payment Market study?

 Market Outlook, Segmentation and Statistics:

  • Impact of COVID-19 on Asia Pacific Contactless Payment Market
  • Expert Verbatim-Interview Excerpts of industry experts
  • Market Size & Analysis
    • By Revenues (USD Million)
  • Market Share & Analysis
    • By Devices
      • Smartphones
      • Smart Cards
      • Point of Sale Terminals
      • Other
    • By Technology
      • NFC
      • RFID
      • IR
    • By End User
      • Retail
      • BFSI
      • Healthcare
      • Telecom & IT
      • Entertainment & Media
      • Hospitality & Restaurant
      • Transportation
      • Others
    • By Country
      • India Contactless Payment Market Outlook, 2016-2026F (USD million)
      • China Contactless Payment Market Outlook, 2016-2026F (USD million)
      • Japan Contactless Payment Market Outlook, 2016-2026F (USD million)
      • Australia Contactless Payment Market Outlook, 2016-2026F (USD million)
      • South Korea Contactless Payment Market Outlook, 2016-2026F (USD million)
      • South East Asia Contactless Payment Market Outlook, 2016-2026F (USD million)
      • Singapore Contactless Payment Market Outlook, 2016-2026F (USD million)
      • Malaysia Contactless Payment Market Outlook, 2016-2026F (USD million)
    • By Company
      • Revenue Shares
      • Strategic Factorial Indexing
      • Competitor Placement in Markntel Quadrant
  • Asia-Pacific Contactless Payment Manufacturing Market- Supply Chain Analysis
  • Asia-Pacific Contactless Payment Market Policies, Regulations, Product Standard
  • Asia-Pacific Contactless Payment Market Hotspots & Opportunities
  • Competition Outlook
    • Competitor Wise Growth Strategies
    • Company Profiles

Frequently Asked Questions

A. The Asia-Pacific Contactless Payment Market is likely to grow at a CAGR of around 16% during 2021-26.

A. India is anticipated to witness significant growth of the Asia-Pacific Contactless Payment Market during 2021-26 and create profitable opportunities for the leading market players.

A. The integration of technologies like Artificial Intelligence (AI) in contactless payment mediums to look after the buying behavior, trends, rewards applied, etc., shall drive significant growth opportunities for the Asia-Pacific Contactless Payment Market during 2021-26.

A. The contactless payment market is anticipated to gain rapid growth during & post the pandemic, owing to the continued use of contactless payments by most consumers to maintain safety & hygiene.

  1. Introduction
    1. Product Definition
    2. Research Process
    3. Glossary
    4. Market Segmentation
  2. Executive Summary
  3. Market Overview
  4. Impact of COVID-19 on APAC Contactless Payments Market
  5. Industry ecosystem analysis
    1. Distribution channel analysis
    2. Vendor matrix
  6. Technology & innovation landscape
    1. Artificial Intelligence (AI)
    2. Augmented reality (AR)/Virtual Reality (VR)
    3. Biometrics
    4. Blockchain
  7. Expert Verbatim- Interview Excerpts of industry experts
  8. APAC Contactless Payments Market Outlook, 2015-2025
    1. Market Size & Analysis
      1. Revenues
    2. Market Share & Analysis
      1. By Devices
        1. Smartphones
        2. Smart Cards
        3. Point of Sale Terminals
        4. Other
      2. By Technology
        1. NFC
        2. RFID
        3. IR
      3. By End User
        1. Retail
        2. BFSI
        3. Healthcare
        4. Telecom & IT
        5. Entertainment & Media
        6. Hospitality & Restaurant
        7. Transportation
        8. Others
      4. By Region
        1. India
        2. China
        3. Australia
        4. South Korea
        5. South East Asia
        6. Japan
        7. Singapore
        8. Malaysia
        9. Others
      5. By Company
        1. Market Shares, By Revenue
        2. Strategic Factorial Indexing
        3. Competitor Placement in MarkNtel Quadrant
    3. Market Attractiveness Index
      1. By Device
      2. By Technology
      3. By End User
  9. China Contactless Payments Market Outlook, 2015-2025
    1. Market Size & Analysis
      1. Revenues
    2. Market Share & Analysis
      1. By Device
      2. By Technology
      3. By End User
  10. India Contactless Payments Market Outlook, 2015-2025
    1. Market Size & Analysis
      1. Revenues
    2. Market Share & Analysis
      1. By Device
      2. By Technology
      3. By End User
  11. Australia Contactless Payments Market Outlook, 2015-2025
    1. Market Size & Analysis
      1. Revenues
    2. Market Share & Analysis
      1. By Device
      2. By Technology
      3. By End User
  12. South Korea Contactless Payments Market Outlook, 2015-2025
    1. Market Size & Analysis
      1. Revenues
    2. Market Share & Analysis
      1. By Device
      2. By Technology
      3. By End User
  13. South East Asia Contactless Payments Market Outlook, 2015-2025
    1. Market Size & Analysis
      1. Revenues
    2. Market Share & Analysis
      1. By Device
      2. By Technology
      3. By End User
  14. Japan Contactless Payments Market Outlook, 2015-2025
    1. Market Size & Analysis
      1. Revenues
    2. Market Share & Analysis
      1. By Device
      2. By Technology
      3. By End User
  15. Singapore Contactless Payments Market Outlook, 2015-2025
    1. Market Size & Analysis
      1. Revenues
    2. Market Share & Analysis
      1. By Device
      2. By Technology
      3. By End User
  16. Malaysia Contactless Payments Market Outlook, 2015-2025
    1. Market Size & Analysis
      1. Revenues
    2. Market Share & Analysis
      1. By Device
      2. By Technology
      3. By End User
  17. APAC Contactless Payments Market Policies, Regulations, Product Standards
  18. APAC Contactless Payments Market Trends & Insights
  19. APAC Contactless Payments Market Dynamics
    1. Growth Drivers
    2. Challenges
    3. Impact Analysis
  20. APAC Contactless Payments Market Hotspots & Opportunities
  21. APAC Contactless Payments Market Key Strategic Imperatives for Success & Growth
  22. APAC Contactless Payments Market Competition Outlook
    1. Competition Matrix
      1. Product Portfolio
      2. Target End Users
      3. Target Market
      4. Research & Development
      5. Manufacturing Unit
      6. Strategic Alliances
      7. Strategic Initiatives
    2. Company Profiles of top companies (Business Description, Product Segments, Business Segments, Financials, Strategic Alliances/ Partnerships, Future Plans)
      1. Alipay
      2. GrabPay
      3. Renesas Electronics Corporation
      4. PayTM
      5. Verifone Systems, Inc.
      6. Rakuten Pay
      7. INSIDE Secure
      8. Ingenico Group S.A.
      9. GEMALTO NV
      10. HEARTLAND PAYMENT SYSTEMS
      11. IBM Corp.
      12. INFINEON TECHNOLOGIES AG
      13. VALITOR HF
      14. Wirecard AG
      15. VISA, INC.
      16. GIESECKE & DEVRIENT GMBH
  23. Disclaimer
Asia Pacific Contactless Payment Market Segmentation