Contactless Payment Terminals

Contactless Payment Terminals Market Outlook

As of 2023, the global contactless payment terminals market is valued at approximately USD 35 billion and is projected to grow at a compound annual growth rate (CAGR) of around 16% from 2025 to 2035. This growth is primarily driven by the increasing adoption of cashless transactions, spurred by consumer preference for convenience and safety amidst the ongoing concerns over hygiene and security. Moreover, the rapid development of mobile technology and the proliferation of smart devices have enabled businesses to adopt contactless payment methods easily and efficiently. The growing trend of e-commerce and the need for contactless payment solutions during the COVID-19 pandemic have also played a pivotal role in increasing the demand for these terminals. As more consumers gravitate towards digital and mobile wallets, the market is set to expand substantially, creating a favorable environment for innovative payment solutions that enhance customer experience.

Growth Factor of the Market

The contactless payment terminals market is experiencing significant growth due to various factors that are interlinked with technological advancements and evolving consumer preferences. One of the primary growth drivers is the increasing penetration of smartphones and smartwatches, which have made mobile payment options more accessible and user-friendly. Furthermore, the ongoing digitization of payment infrastructures across various sectors has paved the way for seamless transactions, minimizing the friction often associated with traditional payment methods. Additionally, the rise of e-commerce platforms has intensified the demand for contactless payment solutions, as businesses seek to enhance customer satisfaction and streamline the checkout process. The growing awareness regarding the safety and hygiene benefits of contactless payments is also encouraging businesses to adopt these terminals. Lastly, governmental initiatives and support for digitization in the financial sector are further bolstering the growth of the contactless payment terminals market.

Key Highlights of the Market

• The market is expected to achieve a CAGR of 16% from 2025 to 2035.
• Portable and mobile contactless payment terminals are anticipated to see significant demand due to their convenience.
• Retail and hospitality sectors are among the largest adopters of contactless payment solutions.
• Increased consumer preference for cashless transactions significantly boosts market growth.
• The COVID-19 pandemic has accelerated the shift towards contactless payment, highlighting the importance of hygiene and safety.

By Product Type

Portable Contactless Payment Terminals:

Portable contactless payment terminals are designed to facilitate transactions on the go, making them ideal for businesses that require mobility, such as food trucks, delivery services, and outdoor vendors. These terminals allow merchants to accept payments anywhere, enhancing customer convenience and satisfaction. The ease of use and compact size of these devices further appeal to small businesses and start-ups. With the continuous advancements in battery technology, portable terminals are becoming more efficient, allowing for longer operational hours without the need for constant recharging. This convenience factor is anticipated to drive growth in this segment, as more businesses recognize the potential to increase sales by offering flexible payment options.

Countertop Contactless Payment Terminals:

Countertop contactless payment terminals are commonly found in retail stores and restaurants, where they serve as fixed payment solutions at checkout counters. These terminals are designed for high transaction volumes, providing businesses with a robust and reliable payment processing solution. The integration of advanced features, such as multi-currency support and customer loyalty programs, enhances their functionality and appeal. As consumers prefer faster checkout experiences, the demand for countertop terminals that facilitate swift contactless payments is on the rise. Furthermore, with the increasing need for enhanced security measures, these terminals often come equipped with encryption technologies, ensuring safe and secure transactions for both consumers and merchants alike.

Mobile Contactless Payment Terminals:

Mobile contactless payment terminals have gained immense popularity due to their versatility and compatibility with smartphones and tablets. They enable merchants to accept payments using mobile wallets or card readers that connect wirelessly with mobile devices. This segment is particularly appealing to smaller businesses that operate in dynamic environments, as they often require a flexible payment solution. The rise of mobile payment applications and services such as Apple Pay, Google Pay, and Samsung Pay has further fueled the growth of this segment. As consumers increasingly rely on their mobile devices for transactions, the demand for mobile contactless payment terminals is expected to continue its upward trajectory, allowing businesses to cater to tech-savvy customers in an efficient manner.

Wearable Contactless Payment Terminals:

Wearable contactless payment terminals represent a unique and innovative segment in the market, encompassing devices such as smartwatches and fitness trackers that enable users to make payments directly from their wrist. This technology offers unparalleled convenience, as it eliminates the need to carry wallets or smartphones during transactions. The growing trend towards wearable technology, coupled with advancements in payment security, has positioned this segment for substantial growth. As consumers become more accustomed to using wearables for everyday activities, the integration of payment functionalities is likely to become a standard feature. This segment is poised to appeal particularly to health-conscious individuals and tech enthusiasts who seek efficiency and ease in their shopping experiences.

Integrated Contactless Payment Terminals:

Integrated contactless payment terminals combine traditional point-of-sale (POS) systems with contactless payment capabilities, providing a comprehensive solution for businesses seeking to streamline their payment processes. This integration allows merchants to manage inventory, customer data, and sales reports all in one system, enhancing operational efficiency. The growing emphasis on omnichannel retailing, where businesses strive to provide a seamless shopping experience across various platforms, has driven demand for integrated systems. These terminals not only support contactless payments but also offer valuable insights into consumer behavior and preferences, enabling businesses to tailor their strategies effectively. As more retailers aim to adopt advanced technologies to improve customer engagement and satisfaction, the integrated contactless payment terminals are expected to witness robust growth.

By Application

Retail:

The retail sector is one of the largest adopters of contactless payment terminals, driven by the need for faster transaction speeds and improved customer experiences. With increasing competition in the retail landscape, merchants are adopting contactless solutions to minimize queue times and enhance customer satisfaction. The ability to process transactions swiftly not only improves operational efficiency but also attracts tech-savvy customers who prefer the convenience of contactless payments. Furthermore, the rise of e-commerce has encouraged brick-and-mortar retailers to integrate contactless payment options to provide a cohesive shopping experience. As a result, the retail sector is expected to continue leading in the adoption of contactless payment terminals, contributing significantly to market growth.

Hospitality:

In the hospitality sector, contactless payment terminals have become essential for enhancing guest experiences and streamlining check-in/check-out processes. Hotels, restaurants, and bars have increasingly adopted these terminals to offer their guests a seamless and hygienic dining or lodging experience. The ability to settle bills quickly without exchanging physical currency or cards aligns well with the evolving expectations of modern consumers, who prioritize convenience and safety. Additionally, the integration of mobile payment solutions allows hospitality businesses to cater to the growing number of guests who prefer to use their smartphones for transactions. This trend is expected to drive further adoption of contactless payment solutions, as hospitality providers seek to stay competitive and provide exceptional service.

Transportation:

The transportation industry has embraced contactless payment terminals to facilitate quick and efficient transactions for commuters. This application is particularly evident in public transport systems, where contactless card readers and mobile payment options are increasingly used to reduce wait times for passengers. The convenience of tapping a card or using a mobile device to pay fares has significantly improved the overall transit experience. Additionally, ride-sharing services have also integrated contactless payment technologies, allowing passengers to settle their fares effortlessly. With urbanization on the rise and the growing need for efficient transport solutions, the demand for contactless payment terminals in this sector is expected to grow steadily.

Healthcare:

In the healthcare sector, contactless payment terminals are becoming integral to improving patient experiences and streamlining administrative processes. Healthcare providers are adopting these terminals to facilitate quicker payments for services, thus enhancing operational efficiency and reducing wait times for patients. The integration of contactless payment solutions also aligns with increasing patient expectations for convenience and safety, particularly in light of the ongoing emphasis on hygiene. Moreover, healthcare facilities are leveraging these technologies to manage billing seamlessly while offering patients the option to pay through various digital wallets. As the healthcare sector continues to evolve and adapt to technological advancements, the adoption of contactless payment terminals is expected to increase significantly.

Others:

The 'Others' category encompasses a variety of applications where contactless payment terminals are gaining traction. This includes sectors such as entertainment, education, and vending machines, where the need for swift and secure payment methods is paramount. The growing trend of cashless operations in various domains is fostering innovation in payment solutions, catering to diverse consumer needs. For instance, ticketing systems for concerts and events are increasingly incorporating contactless payments to enhance the customer experience. Furthermore, educational institutions are adopting these terminals to streamline fee payment processes for students and parents. As more industries recognize the benefits of contactless payments, this segment is expected to witness substantial growth and diversification.

By Distribution Channel

Online Stores:

Online stores represent a significant distribution channel for contactless payment terminals, as e-commerce continues to thrive globally. With the rise of online shopping, many retailers choose to purchase contactless payment solutions through e-commerce platforms to enhance their payment infrastructure. The convenience of online procurement allows businesses to compare different products, read customer reviews, and select the best options for their needs from the comfort of their own premises. Additionally, online retailers often provide extensive information about the terminals they offer, empowering buyers to make informed decisions. As the e-commerce landscape keeps evolving, the demand for contactless payment terminals through online channels is expected to grow, driven by the desire for efficiency and ease of transaction.

Supermarkets/Hypermarkets:

Supermarkets and hypermarkets are critical distribution channels for contactless payment terminals, as they cater to high-traffic environments where quick and efficient payment processing is essential. These large retail establishments have increasingly adopted contactless solutions to reduce queue times and enhance customer satisfaction. By integrating contactless payment terminals at their checkout counters, supermarkets can facilitate faster transactions, ultimately improving overall customer experience. Furthermore, as these establishments often have diverse customer bases, offering a range of payment options, including contactless payments, is vital for staying competitive. The growing trend of convenience-driven shopping is likely to bolster the adoption of contactless payment terminals in supermarkets and hypermarkets, making them a key channel for market growth.

Specialty Stores:

Specialty stores, which focus on niche markets or specific product categories, are progressively adopting contactless payment terminals to enhance customer service and streamline transaction processes. These stores often cater to a discerning clientele that values convenience and modern payment methods. By incorporating contactless payment options, specialty retailers can improve their checkout processes, attracting tech-savvy customers who prefer quick and secure transactions. Additionally, the integration of contactless payments allows these retailers to offer personalized services, such as loyalty programs, which can enhance customer retention. As the trend towards modern payment solutions continues, specialty stores are expected to increasingly adopt contactless terminals to meet evolving consumer preferences.

Others:

The 'Others' category encompasses various distribution channels that are relevant to the contactless payment terminals market. This includes avenues such as direct sales from manufacturers, distributors, and other retail formats. The diversity of distribution channels allows vendors to reach a broader audience, increasing accessibility for end-users. Businesses may also choose to engage with specialized distributors who focus on payment technologies, enabling them to get tailored solutions that fit their specific needs. The emergence of innovative sales models, such as subscription-based services, further diversifies the available distribution avenues. As the demand for contactless payment solutions increases, the 'Others' distribution channels will likely play a pivotal role in expanding the market reach.

By Region

The North America region is poised to dominate the contactless payment terminals market, projecting a market value of approximately USD 15 billion by 2035, growing with a CAGR of around 17% from 2025 to 2035. The increasing penetration of smart devices, coupled with a strong emphasis on digital payment solutions among consumers, has propelled the adoption of contactless payment solutions across various industries in this region. Moreover, the presence of major payment technology companies and the continuous evolution of payment infrastructures contribute significantly to market growth. Notably, the COVID-19 pandemic has accelerated the shift towards contactless payment methods, further solidifying North America's position as a leader in this market.

In Europe, the contactless payment terminals market is expected to flourish, achieving a value of around USD 12 billion by 2035. This growth can be attributed to the rising acceptance of contactless technology among consumers and merchants alike. Countries such as the UK, Germany, and France are leading the charge, driven by favorable regulatory environments and governmental initiatives promoting cashless transactions. The European market showcases a diverse range of applications for contactless payments, from retail to transportation, which continues to drive demand. As consumers become increasingly accustomed to using contactless payment methods, the trajectory for growth in this region remains positive, fostering an environment conducive to innovation and expansion.

Opportunities

The contactless payment terminals market presents numerous opportunities for growth and expansion across various sectors. One significant opportunity lies in the ongoing technological advancements in payment processing solutions. As the demand for faster, more secure transactions increases, companies that innovate and develop cutting-edge contactless payment technologies will have the potential to capture considerable market share. Furthermore, the rising adoption of Internet of Things (IoT) devices and connected technologies can facilitate the integration of contactless payment solutions in various applications, from smart homes to automated vending machines. This integration not only enhances convenience for consumers but also creates new revenue streams for businesses within the ecosystem. Additionally, expanding into emerging markets presents a golden opportunity for industry players, as these regions exhibit a growing appetite for cashless payment solutions, particularly as the banking infrastructure develops and mobile connectivity improves.

Another promising opportunity for the contactless payment terminals market lies in the increasing focus on sustainability and eco-friendly solutions. As consumers become more environmentally conscious, payment providers that prioritize sustainable practices may differentiate themselves and attract a loyal customer base. Developing contactless payment terminals made from recyclable materials or implementing green technologies in their operations can help companies align with this growing consumer trend. Moreover, partnerships between payment solution providers and businesses in various sectors can create synergies that enhance customer offerings. Collaborating with retail, transportation, and hospitality sectors can lead to tailored solutions that meet specific consumer needs, thus driving further adoption of contactless payments. Overall, the contactless payment terminals market is rife with opportunities for players willing to innovate and adapt to changing market dynamics.

Threats

The contactless payment terminals market faces several threats that could hinder growth and impact the competitive landscape. One major concern is the potential for security breaches and cyberattacks, which can undermine consumer trust in contactless payment solutions. As more transactions transition to digital platforms, the risk of fraud and data theft increases. If consumers perceive contactless payments as vulnerable to security threats, they may be reluctant to adopt these technologies, which could stall market growth. Additionally, the rapid pace of technological advancement can pose a challenge, as businesses must continuously invest in upgrades and innovations to remain competitive in a crowded marketplace. Failure to keep pace with industry developments can result in obsolescence and loss of market share for companies that do not adapt swiftly.

Another significant threat to the contactless payment terminals market is the possibility of stringent regulatory changes. Governments and financial institutions worldwide are increasingly scrutinizing digital payment systems to ensure consumer protection and financial stability. Any regulatory changes that impose additional compliance burdens or restrictions on contactless payment solutions may stifle innovation and slow market growth. Furthermore, the economic impact of global events, such as the COVID-19 pandemic, can lead to fluctuations in consumer spending and investment in non-essential technologies. While the emphasis on contactless payments has risen during the pandemic, future economic uncertainties may influence businesses' willingness to invest in new payment infrastructures. Consequently, companies must navigate these threats proactively to ensure sustained growth in the evolving contactless payment terminals landscape.

Competitor Outlook

• Square, Inc.
• PayPal Holdings, Inc.
• Worldline S.A.
• Verifone, Inc.
• Ingenico Group S.A.
• Diebold Nixdorf, Incorporated
• Toast, Inc.
• Zebra Technologies Corporation
• NCR Corporation
• PAX Technology Limited
• SumUp Limited
• Adyen N.V.
• FIS Global
• Elavon, Inc.
• Clover Network, Inc.

The competitive landscape of the contactless payment terminals market is characterized by a mix of established players and emerging entrants striving to capture market share in a rapidly evolving environment. Leading companies are focusing on innovation and differentiation as a means of staying ahead of the competition. Established firms such as Square and PayPal have leveraged their extensive market presence and technological prowess to continuously enhance their contactless payment solutions. These companies are investing heavily in research and development to introduce new features and integrations that enhance the user experience, providing merchants with the tools they need to succeed in the digital payment landscape. Additionally, many competitors are forming strategic partnerships with other technology providers to expand their service offerings and enter new markets, thereby creating a more robust ecosystem for contactless payments.

Moreover, the competitive landscape is marked by the emphasis on user experience and customer service, which are becoming increasingly important in differentiating offerings in the contactless payment terminals market. Companies that can ensure seamless integration, robust technical support, and user-friendly interfaces are likely to gain a competitive advantage. For instance, companies like Ingenico and Verifone have established reputations for providing reliable terminals with comprehensive service packages, positioning them as trusted partners for retailers and businesses seeking to implement contactless payment solutions. Additionally, smaller players such as SumUp and Toast are gaining traction by targeting niche markets and providing tailored solutions that meet the specific needs of their customers, demonstrating that agility and customization can also play a pivotal role in establishing a foothold in the market.

As the contactless payment terminals market continues to grow, major players are also focusing on sustainability and corporate social responsibility (CSR) as differentiating factors. Companies are increasingly aware of the growing consumer demand for environmentally friendly products, leading them to adopt sustainable practices in their operations and product development. This shift not only fulfills consumer expectations but also helps companies build a positive brand image, which can further enhance customer loyalty. In this landscape, companies like Worldline and FIS Global are implementing initiatives aimed at reducing their carbon footprint while maintaining robust technological offerings. Overall, the competitive landscape is dynamic and multifaceted, with key players continuously adapting to meet consumer preferences and navigate market challenges.

• 1 Appendix

  • 1.1 List of Tables
  • 1.2 List of Figures

• 2 Introduction

  • 2.1 Market Definition
  • 2.2 Scope of the Report
  • 2.3 Study Assumptions
  • 2.4 Base Currency & Forecast Periods

• 3 Market Dynamics

  • 3.1 Market Growth Factors
  • 3.2 Economic & Global Events
  • 3.3 Innovation Trends
  • 3.4 Supply Chain Analysis

• 4 Consumer Behavior

  • 4.1 Market Trends
  • 4.2 Pricing Analysis
  • 4.3 Buyer Insights

• 5 Key Player Profiles

  • 5.1 Adyen N.V.
    • 5.1.1 Business Overview
    • 5.1.2 Products & Services
    • 5.1.3 Financials
    • 5.1.4 Recent Developments
    • 5.1.5 SWOT Analysis
  • 5.2 FIS Global
    • 5.2.1 Business Overview
    • 5.2.2 Products & Services
    • 5.2.3 Financials
    • 5.2.4 Recent Developments
    • 5.2.5 SWOT Analysis
  • 5.3 Toast, Inc.
    • 5.3.1 Business Overview
    • 5.3.2 Products & Services
    • 5.3.3 Financials
    • 5.3.4 Recent Developments
    • 5.3.5 SWOT Analysis
  • 5.4 Elavon, Inc.
    • 5.4.1 Business Overview
    • 5.4.2 Products & Services
    • 5.4.3 Financials
    • 5.4.4 Recent Developments
    • 5.4.5 SWOT Analysis
  • 5.5 Square, Inc.
    • 5.5.1 Business Overview
    • 5.5.2 Products & Services
    • 5.5.3 Financials
    • 5.5.4 Recent Developments
    • 5.5.5 SWOT Analysis
  • 5.6 SumUp Limited
    • 5.6.1 Business Overview
    • 5.6.2 Products & Services
    • 5.6.3 Financials
    • 5.6.4 Recent Developments
    • 5.6.5 SWOT Analysis
  • 5.7 Verifone, Inc.
    • 5.7.1 Business Overview
    • 5.7.2 Products & Services
    • 5.7.3 Financials
    • 5.7.4 Recent Developments
    • 5.7.5 SWOT Analysis
  • 5.8 Worldline S.A.
    • 5.8.1 Business Overview
    • 5.8.2 Products & Services
    • 5.8.3 Financials
    • 5.8.4 Recent Developments
    • 5.8.5 SWOT Analysis
  • 5.9 NCR Corporation
    • 5.9.1 Business Overview
    • 5.9.2 Products & Services
    • 5.9.3 Financials
    • 5.9.4 Recent Developments
    • 5.9.5 SWOT Analysis
  • 5.10 Ingenico Group S.A.
    • 5.10.1 Business Overview
    • 5.10.2 Products & Services
    • 5.10.3 Financials
    • 5.10.4 Recent Developments
    • 5.10.5 SWOT Analysis
  • 5.11 Clover Network, Inc.
    • 5.11.1 Business Overview
    • 5.11.2 Products & Services
    • 5.11.3 Financials
    • 5.11.4 Recent Developments
    • 5.11.5 SWOT Analysis
  • 5.12 PayPal Holdings, Inc.
    • 5.12.1 Business Overview
    • 5.12.2 Products & Services
    • 5.12.3 Financials
    • 5.12.4 Recent Developments
    • 5.12.5 SWOT Analysis
  • 5.13 PAX Technology Limited
    • 5.13.1 Business Overview
    • 5.13.2 Products & Services
    • 5.13.3 Financials
    • 5.13.4 Recent Developments
    • 5.13.5 SWOT Analysis
  • 5.14 Diebold Nixdorf, Incorporated
    • 5.14.1 Business Overview
    • 5.14.2 Products & Services
    • 5.14.3 Financials
    • 5.14.4 Recent Developments
    • 5.14.5 SWOT Analysis
  • 5.15 Zebra Technologies Corporation
    • 5.15.1 Business Overview
    • 5.15.2 Products & Services
    • 5.15.3 Financials
    • 5.15.4 Recent Developments
    • 5.15.5 SWOT Analysis

• 6 Market Segmentation

  • 6.1 Contactless Payment Terminals Market, By Application
    • 6.1.1 Retail
    • 6.1.2 Hospitality
    • 6.1.3 Transportation
    • 6.1.4 Healthcare
    • 6.1.5 Others
  • 6.2 Contactless Payment Terminals Market, By Product Type
    • 6.2.1 Portable Contactless Payment Terminals
    • 6.2.2 Countertop Contactless Payment Terminals
    • 6.2.3 Mobile Contactless Payment Terminals
    • 6.2.4 Wearable Contactless Payment Terminals
    • 6.2.5 Integrated Contactless Payment Terminals
  • 6.3 Contactless Payment Terminals Market, By Distribution Channel
    • 6.3.1 Online Stores
    • 6.3.2 Supermarkets/Hypermarkets
    • 6.3.3 Specialty Stores
    • 6.3.4 Others

• 7 Competitive Analysis

  • 7.1 Key Player Comparison
  • 7.2 Market Share Analysis
  • 7.3 Investment Trends
  • 7.4 SWOT Analysis

• 8 Research Methodology

  • 8.1 Analysis Design
  • 8.2 Research Phases
  • 8.3 Study Timeline

• 9 Future Market Outlook

  • 9.1 Growth Forecast
  • 9.2 Market Evolution

• 10 Geographical Overview

  • 10.1 Europe - Market Analysis
    • 10.1.1 By Country
      • 10.1.1.1 UK
      • 10.1.1.2 France
      • 10.1.1.3 Germany
      • 10.1.1.4 Spain
      • 10.1.1.5 Italy
  • 10.2 Asia Pacific - Market Analysis
    • 10.2.1 By Country
      • 10.2.1.1 India
      • 10.2.1.2 China
      • 10.2.1.3 Japan
      • 10.2.1.4 South Korea
  • 10.3 Latin America - Market Analysis
    • 10.3.1 By Country
      • 10.3.1.1 Brazil
      • 10.3.1.2 Argentina
      • 10.3.1.3 Mexico
  • 10.4 North America - Market Analysis
    • 10.4.1 By Country
      • 10.4.1.1 USA
      • 10.4.1.2 Canada
  • 10.5 Middle East & Africa - Market Analysis
    • 10.5.1 By Country
      • 10.5.1.1 Middle East
      • 10.5.1.2 Africa
  • 10.6 Contactless Payment Terminals Market by Region

• 11 Global Economic Factors

  • 11.1 Inflation Impact
  • 11.2 Trade Policies

• 12 Technology & Innovation

  • 12.1 Emerging Technologies
  • 12.2 AI & Digital Trends
  • 12.3 Patent Research

• 13 Investment & Market Growth

  • 13.1 Funding Trends
  • 13.2 Future Market Projections

• 14 Market Overview & Key Insights

  • 14.1 Executive Summary
  • 14.2 Key Trends
  • 14.3 Market Challenges
  • 14.4 Regulatory Landscape

Segments Analyzed in the Report

The global Contactless Payment Terminals market is categorized based on

By Product Type

• Portable Contactless Payment Terminals
• Countertop Contactless Payment Terminals
• Mobile Contactless Payment Terminals
• Wearable Contactless Payment Terminals
• Integrated Contactless Payment Terminals

By Application

• Retail
• Hospitality
• Transportation
• Healthcare
• Others

By Distribution Channel

• Online Stores
• Supermarkets/Hypermarkets
• Specialty Stores
• Others

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Key Players

• Square, Inc.
• PayPal Holdings, Inc.
• Worldline S.A.
• Verifone, Inc.
• Ingenico Group S.A.
• Diebold Nixdorf, Incorporated
• Toast, Inc.
• Zebra Technologies Corporation
• NCR Corporation
• PAX Technology Limited
• SumUp Limited
• Adyen N.V.
• FIS Global
• Elavon, Inc.
• Clover Network, Inc.