Proximity Payment Market Size To Hit USD 42.72 Bn By 2030

The global proximity payment market size was exhibited at USD 15.79 billion in 2022 and is expected to hit around USD 42.72 billion by 2030, poised to grow at a projected CAGR of 13.2% during the forecast period 2022 to 2030.

Proximity payments are the type of payment where the payer and the payee should be in close proximity and should be able to communicate their devices using proximity technology such as Near Field Communication (NFC), Quick Response (QR) codes, Bluetooth technology, others. This payment system allows the devices to communicate and make payments at a physical point-of-sale terminal. Using a mobile phone, the proximity payment is initiated utilizing near-field communication (NFC) technology. Also, by using the contactless payment card proximity payments are extensively done. The contactless card has a chip inside it that emit radio waves which are picked up by the reader (RFID reader) and the required payment is performed.

Crucial Factors Accountable for Market Growth are:

• The primary benefits that are provided by the proximity payment systems include flexibility of payment devices, reduced transaction time, Real-time transaction processing, and an increase in convenience.
• The surge in demand for smartphones in the market.
• Faster connectivity provided by the telecom companies fosters the proximity payment market.
• Rapid urbanization in developing economies fuels market growth.
• Increasing payment efficiency and customer convenience with reduced operational costs.
• The desire for contactless payments. 

Proximity Payment Market Report Scope

Report Highlights

• Asia Pacific region is expected to grow at the highest CAGR during the forecast period owing to the presence of flourishing economies that provides a stable ecosystem that facilitates the proximity payment.
• The favoring Government policies promoting digital payments is fostering market growth.
• The increase in the use of chemicals across diverse industry verticals will boost the market growth of the Proximity Payment Market.
• By Geography, Europe holds a significant share in the Proximity Payment Market in terms of revenue share because of the increased awareness of the users and the presence of robust payment infrastructure in the region.

Regional Snapshots

Europe on the other hand is dominating the proximity payment market owing to the increased awareness among users regarding the benefits of proximity payments and the Government policies that favors the implementation of hassle-free and safe proximity payment systems.

Asia Pacific region is expected to dominate the proximity payment during the forecast period owing to the presence of developing nations such as India, China, Japan, and Australia. These countries provide a stable ecosystem that fosters the growth of the proximity payment market. 

Market Dynamics

Driver

The surge in the usage of smartphones that facilitates proximity payments is a significant factor that drives market growth. Moreover, the rise in the adoption of proximity payments among merchants and the faster connectivity to enable proximity payment are some of the factors that will drive the growth of the proximity payment market. For instance, On 24th June 2021, FIS, a leader in financial technology announced that Rye, NY-based USALLIANCE Financial has selected the FIS Payments One platform to streamline and modernize its portfolio of credit and debit card digital payment offerings for its member.

Restraint

The major restraining factor that will negatively impact the growth of the Proximity Payment Market includes the surge in data breaches and the availability of safe and robust payment infrastructure across the globe.

Opportunity

With the advancement of technologies, the service providers of the payment gateways are now implementing innovative techniques that provide hassle-free payment experience to the user and this factor will find huge opportunities in the upcoming years.

Challenges

The major and most important challenge faced by the Proximity Payment Market is the safety of the transaction. The unavailability of faster connectivity that fosters proximity payment in all parts of the world will pose a huge challenge to market growth.

Recent Developments

• On 7th October 2021, Visa Inc. the world’s leader in digital payments in collaboration with ANZ and Quest Payment Systems will launch Visa Installments, bringing popular buy now, pay later financing to credit card customers buying in-person or online.
• On 8th September 2021 ACI Worldwide, a leading global provider of real-time payments and digital payment software solutions announced that MDT innovations SdnBhd has strengthened its payments capabilities with the ACI Enterprise Payments Platform. Fave, Southeast Asia's smart payments app, is the first customer to go live with the new solution, rolling out FavePayDuitNow QR at 20,000 restaurants and retailers throughout Malaysia.
• On 21st September 2021, PayPal introduced new features and services to its app by adding access to high-yield savings, in-app shopping tools, deals, and rewards, up to two-day early access to Direct Deposit, and bill pay.

Key Market Players

• ACI Worldwide Inc.
• Alphabet Inc.
• Apple Inc.
• FIS
• IDEMIA
• Ingenico
• Mastercard
• PayPal Holdings Inc.
• Square Inc.
• Visa Inc.

Segments Covered in the Report

By Offering

• Solution
  • Hardware
  • Software
• Service

By Application

• Grocery Stores
• Bars & Restaurants
• Drug Stores
• Entertainment Centers
• Others

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