Global $26.4 Billion Proximity Payment Market Industry to 2027

The “Global Proximity Payment Market By Offering, By Application, By Regional Outlook, Industry Analysis Report and Forecast, 2021 – 2027″ report has been added to ResearchAndMarkets.com’s offering.

The Global Proximity Payment Market size is expected to reach $26.4 billion by 2027, rising at a market growth of 11.6% CAGR during the forecast period.

With proximity payment technology, devices can communicate and carry out payment generally within a distance of 4 cm. This mode of payment enables customers to pay for goods and services via smartphones and other devices at a physical point-of-sale (POS) terminal. In addition, a smartphone that utilizes Near Field Communication (NFC) technology can initiate proximity payment.

Additionally, in NFC payment, the reader and payment devices must be close to each other in order to initiate the transaction, so that NFC chips can exchange cryptographic data to finish the transaction.

Moreover, the growth of the proximity payment market is directly proportional to the growth in acceptance of smartphones and penetration of high-speed internet, and growing utilization of proximity payments among the merchants. The expansion and growth of mobile point of sale (mPOS) infrastructure have been increased due to the growing popularity of mobile-based proximity payments.

In addition, the emerging trend in the mPOS framework is due to the higher shift toward a cashless system and the arrival of in-person payment experiences. Additionally, merchants, restaurants, and retailers are the biggest end-user segments that accepted proximity payments methods in their current businesses.

Market Growth Factors:

Safer and streamlined and mechanism of proximity payment

The proximity payments can be done within the span of 15 seconds and are significantly faster as compared to traditional payment methods. With a low amount of handling and processing of cash happening, transactions are finished at a rapid rate.

As a result, turnover is expected to increase and queues are a highly unlikely scenario. In proximity payments, there is no requirement for pin number as a transaction only requires a tap on a reader, the number of staff behind the management and handling of payment is significantly reduced.

Growing acceptance of Smartphones and penetration of high-speed Internet

Countries such as India, Canada, and China have witnessed an increasing adoption rate of smartphones in the last couple of years. Additionally, the penetration of 3G and 4G connectivity has allowed customers to achieve seamless access to conduct payments on their smartphones. In addition, the growth of the proximity payment market is expected to be fueled by the massive traction of 5G networks across North America, Europe, Asia, and the Middle East. Moreover, massive development in the distribution network of smartphone organizations has increased the availability of smartphones for end users.

Market Restraining Factors:

Concerns about data security and breaches during payments

Cutting-edge payment technologies provide a host of benefits and convenience to customers. Conversely, the growth of the proximity payment market is expected to be hindered by the growing number of concerns about data security and breaches. As a result, consumers are not willing to initiate payments through proximity payment, as they are worried about the risk of their financial data being accessed by third-party mobile service vendors.

Offering Outlook

Based on Offering, the market is segmented into Solution and Services. The Solution market dominated the Global Proximity Payment Market by Offering 2020, and is expected to continue to be a dominant market till 2027. The Services market is expected to witness a CAGR of 14% during (2021 – 2027).

Application Outlook

Based on Application, the market is segmented into Grocery Stores, Drug Stores, Bars & Restaurants, Entertainment Centers, and Others. The grocery stores segment obtained the prominent revenue share of the proximity payment market in 2020. The growth of the segment has been fueled due to the massive adoption and installation of proximity payment services by a number of food & grocery stores owners in order to increase the speed of the transaction and to appeal to a huge customer base.

Regional Outlook

Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. APAC is expected to showcase the display growth rate throughout the forecasting period. Factors such as increasing adoption of modern payment technologies like QR codes, biometrics, and cryptocurrencies among the merchants, retailers, and restaurants and higher smartphones penetration and internet utilization in the region are responsible for the massive growth of the APAC region.

The market research report covers the analysis of key stake holders of the market.

List of Companies Profiled in the Report: