Contactless Payments Market Size, Share, Growth, Trends, and Global Industry Analysis: By Technology (Near Field Communication (NFC), Radio Frequency Identification (RFID), QR Code–Based Payments, Others), By Device Type (Contactless Cards, Smartphones, Wearables, Others), By End User (Retail, Transportation, Hospitality, Banking & Financial Services, Healthcare, Others) and Region Forecast 2021-2032

Contactless Payments Market size was valued at US$ 45.3 Billion in 2025 and is projected to reach US$ 175.0 Billion by 2032 at a CAGR of 21.3% form 2026-2032. Moreover, the U.S. Contactless Payments Market is projected to grow at a CAGR of 21% by 2032.

The market refers to the ecosystem of technologies, solutions, and services that enable consumers and businesses to make payments without physical contact between the payment device and the point-of-sale terminal. It includes Near Field Communication (NFC), radio-frequency identification (RFID), QR codes, and tokenization-based mobile wallets, supporting transactions via contactless cards, smartphones, wearables, and other smart devices across retail, transportation, hospitality, and online-to-offline environments.

The market is witnessing strong growth driven by rising smartphone penetration, increasing consumer preference for fast and convenient transactions, and expanding acceptance infrastructure among merchants. Financial institutions, fintech companies, and technology providers are actively investing in secure digital payment platforms, while governments and regulators promote cashless economies. The market’s expansion is further supported by advancements in security features, interoperability, and the growing adoption of contactless payments in emerging economies alongside mature markets.

Key Developments

• In January 2025, the UK Department for Transport announced a major expansion of contactless pay-as-you-go ticketing under Project Oval, integrating contactless fare payment at 49 additional National Rail stations by the end of the year. This initiative aimed to simplify rail travel with broader tap-in/tap-out capabilities across the southeast rail network. The rollout across key stations marked a significant step toward wider acceptance of contactless ticketing in public transportation.
• In July 2025, Mastercard and Eastern Bank PLC introduced the world’s first commercially issued biometric metal credit card in Dhaka, Bangladesh. This card supports both contact and contactless payments with fingerprint authentication, representing an innovative move to combine enhanced security with tap-to-pay convenience in a developing market.

Contactless Payments Market Segmentation

Based on the Technology

• Near Field Communication (NFC)
• Radio Frequency Identification (RFID)
• QR Code–Based Payments
• Others

Among the listed technologies, Near Field Communication (NFC) is anticipated to lead the contactless payments market, driven primarily by its widespread integration across consumer devices and payment infrastructure. NFC technology is embedded in most contactless cards, smartphones, and wearable devices, enabling fast, secure, and seamless transactions at physical points of sale. Its compatibility with existing card networks and banking systems allows easy scalability for merchants without major system changes. Additionally, strong backing from global payment networks and financial institutions has accelerated NFC terminal deployment across retail, transportation, and hospitality sectors. The ability of NFC to support encrypted, short-range communication enhances consumer trust, making it the preferred technology for high-frequency, everyday transactions in mature and emerging markets.

Based on the Device Type

• Contactless Cards
• Smartphones
• Wearables
• Others

Based on device type, smartphones are anticipated to lead the contactless payments market, driven by their multifunctionality and deep integration into consumers’ daily lives. Smartphones act as a single platform for payments, banking, loyalty programs, and authentication, making them more versatile than standalone cards or wearables. The widespread adoption of mobile wallets, combined with built-in NFC and QR code capabilities, has significantly accelerated smartphone-based contactless transactions. Additionally, smartphones support advanced security features such as biometric authentication and tokenization, which enhance user confidence and reduce fraud concerns. Strong ecosystem support from fintech companies, banks, and operating system providers further strengthens smartphone dominance, positioning them as the most influential device type in driving market growth.

Based on the end user

• Retail
• Transportation
• Hospitality
• Banking & Financial Services
• Healthcare
• Others

Based on end user, the retail sector is anticipated to lead the contactless payments market, driven by its high transaction volumes and constant need for fast, efficient checkout experiences. Retail environments such as supermarkets, convenience stores, and quick-service outlets rely heavily on speed and customer throughput, making contactless payments an ideal solution. The adoption of tap-to-pay terminals reduces queue times, improves customer satisfaction, and supports impulse purchasing behaviour. Retailers also benefit from improved transaction accuracy and seamless integration with loyalty programs and digital receipts. The continuous expansion of organized retail and omnichannel commerce further strengthens retail’s dominance, positioning it as the most influential end-user segment in accelerating the adoption of contactless payment solutions globally.