Contactless EMV Cards Market Size, Share, Growth, And Industry Analysis By Type (RF ID Contactless EMV Cards, RF IC Contactless EMV Cards, and RF CPU Contactless EMV Cards) By Application (Healthcare, Government IDs (e-passports), Retail Sectors, and Others) and Regional Insights and Forecast to 2031

Updated On: 22 April 2024

contactless EMV cards market Report Overview

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The global contactless EMV cards market size was USD 952.76 million in 2021 and is expected to reach USD 1571.55 million by 2027, exhibiting a CAGR of 8.7% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the Contactless EMV cards market growth and demand returning to pre-pandemic levels once the pandemic is over.

Due to the widespread deployment of contactless payment systems in recent years, this market has experienced tremendous growth. By removing the requirement for direct physical touch with the payment terminal, these cards provide a practical and secure method of conducting transactions. Users with contactless EMV cards tap or wave their cards in front of the payment terminal to make a transaction thanks to near-field communication (NFC) technology. Due to its speed, usability, and enhanced security features, this technology has become increasingly popular among consumers and organizations.

Today's market offers several different contactless EMV card varieties. Credit cards, debit cards, and prepaid cards are the most widely used. The cardholder's personal identification number (PIN) and account information are safely stored on an integrated microchip in these cards. A built-in antenna allows the card to communicate wirelessly with the payment terminal and enables contactless capability. The existence of the contactless symbol, such as the wave-like sign or the words "PayPass" or "PayWave," which denotes that the card is capable of conducting contactless payments, can be used to identify contactless EMV cards.

COVID-19 Impact: Need For Social Distancing And Increased Focus On Hygiene Accelerated The Market Growth

The COVID-19 pandemic, which is still going on, has greatly increased the use of contactless payment systems, such as contactless EMV cards. Consumers are actively looking for touchless alternatives to conventional payment methods due to the requirement for social distancing and the growing emphasis on hygiene. These cards provide a secure and practical alternative as they reduce direct physical touch between the cardholder and the payment terminal. In addition, a lot of businesses and nations have started promoting contactless payments as a way to stop the virus from spreading. For instance, to eliminate the handling of real money, several stores have imposed restrictions on cash transactions or have shifted to contactless payments.

Latest Trends

"Integration Of Biometric Authentication Fuels Boosts Market Expansion"

Biometric authentication is one of the newest trends in this market. Using biometric technology like fingerprint or facial identification makes contactless payments more secure. This minimizes the possibility of fraud and unauthorized use by ensuring that only the authorized cardholder may execute a transaction. They have become more popular due to the growing acceptance of biometric authentication as a safe and practical method of confirming the cardholder’s identity. Incorporating rewards and loyalty programs into contactless EMV cards is a growing trend. Customers can have a simple and rewarding purchasing experience when card issuers and shops combine payment capabilities with loyalty features.

contactless EMV cards market Segmentation

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• By Type Analysis

The market can be segmented into RF ID contactless EMV cards, RF IC contactless EMV cards, and RF CPU contactless EMV cards.

 Among these, the RF ID contactless EMV cards are projected to experience rapid growth through 2028.

• By Application Analysis

The market can be divided based on application into healthcare, government IDs (e-passports), retail sectors, and others.

Healthcare is expected to hold the most market share in the upcoming years.

Driving Factors

"More Efficient Way To Make Transactions to Propel Market Expansion"

Convenience and security are the two main elements driving this market. Contactless payments offer quicker and more effective means to complete purchases than traditional payment methods. Users may quickly finish their transactions with just a tap or wave of the card, reducing wait times and enhancing the customer experience. Using these cards also makes handling physical cards or cash unnecessary, adding convenience and security.

"Advanced Security Features to Fuel Market Growth"

Furthermore, additional security features built into contactless EMV cards shield cardholders from fraud and illegal usage. The cardholder's information is safely saved and communicated throughout a transaction thanks to the embedded microchip and encryption technology. By substituting a distinct token for each transaction in place of the cardholder's sensitive information, tokenization also increases the security of contactless payments. They are now a reliable and safe payment option because these security features inspire trust in consumers and businesses.

Restraining Factor

"Concern Over Privacy And Data Security to Hinder Market Growth"

Even if this market has experienced rapid expansion, some restrictions could prevent future use. The limited acceptability of contactless payments in some areas or among particular merchants is one of the major obstacles. There are still some areas where payment terminals do not enable contactless transactions, although the infrastructure for contactless payments is growing. Consumers may be reluctant to use contactless EMV cards if they are not widely recognized, which can be a hurdle to adoption. The concern over privacy and data security is another element that could constrain the industry. There is a perception that contactless payments risk data breaches or unauthorized access to cardholder information because they rely on wireless communication technologies.

contactless EMV cards market Regional Insights

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"North America To Dominate Market Due To Offering Faster And More Efficient Way To Make Transactions"

North America holds the Contactless EMV cards market share, and factors driving the market growth in this region include offering faster and more efficient ways to make transactions. Security and convenience are the two main driving forces behind this market. Comparing traditional payment methods to contactless ones, contactless payments offer a quicker and more effective means to conduct transactions. Customers may quickly finish their purchases with a quick tap or wave of the card, cutting down on wait times and enhancing the entire shopping experience. Additionally, these cards eliminate the necessity for handling physical cards and cash, adding convenience and security.

Key Industry Players

"Key Players Focus on Partnerships to Gain a Competitive Advantage "

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios.

List of Market Players Profiled

• Giesecke & Devrient (Germany)
• Visa (U.S.)
• ABnote (U.S.)
• Oberthur Technologies (France)
• NXP (Netherlands)
• Gemalto (Netherlands)
• HID Global (U.S.)
• Safran (France)
• CardLogix (U.S.)
• Bell ID (U.S.)
• Infineon (Germany)
• American Express (U.S.)
• MasterCard (U.S.)
• Watchdata (China)

Report Coverage

This research profiles a report with extensive studies that take into description the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting factors like segmentation, opportunities, industrial developments, trends, growth, size, share, and restraints. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.