Contactless Payment Terminals Market - Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented By Technology (Bluetooth, Infrared, Carrier-based, Wi-Fi, Other), By Payment Method (Account-based, Credit/Debit Card, Stored Value, Smart Card, Other), By End User Industry (Retail, Transportation, Banking, Government, Healthcare, Other), By Region, and By Competition, 2020-2030F

Market Overview

The Global Contactless Payment Terminals Market will grow from USD 41.10 Billion in 2024 to USD 104.89 Billion by 2030 at a 16.90% CAGR. Contactless payment terminals process transactions via Near Field Communication (NFC), allowing users to pay by tapping a card or device against a compatible reader. Market expansion is driven by consumer demand for speed and convenience, heightened hygiene awareness, and the widespread adoption of mobile wallets with increasing smartphone penetration. Government support and continuous technological advancements in terminal functionality further propel growth.

Evidencing this growth, according to the Smart Payment Association, 92% of all payment cards shipped globally in 2024 were contactless-enabled. Additionally, according to the European Central Bank, in the first half of 2024, 86% of the 20.8 million point-of-sale terminals in the euro area supported contactless transactions. A significant challenge impeding market expansion remains the persistent concern over security risks like data breaches and cyber-attacks, requiring robust security protocols and increased consumer confidence.

Key Market Drivers

The growth of the global contactless payment terminals market is significantly influenced by increasing consumer demand for transactional speed, convenience, and heightened hygiene awareness. Modern consumers prioritize efficiency at the point of sale, favoring methods that reduce waiting times and physical contact. This preference is particularly evident in quick-service environments and retail settings where rapid transactions enhance the customer experience. According to Mastercard, as reported by PYMNTS.com in October 2024, "Mastercard: Contactless Payments Now 70% of Face-to-Face Transactions", 70% of face-to-face transactions globally were contactless, underscoring the widespread adoption driven by these consumer expectations. Concurrently, a global shift towards cashless economies and digital payment adoption is a pivotal driver. Governments and financial institutions actively promote digital payment ecosystems to enhance financial inclusion, reduce the costs associated with cash handling, and improve transaction traceability. This systemic transformation encourages both consumers and merchants to embrace digital payment solutions, including contactless options. According to the European Central Bank, in July 2025, "Payments statistics: second half of 2024", the total number of non-cash payments in the euro area in the second half of 2024 increased by 8.6% to 77.6 billion compared with the second half of 2023.

These fundamental shifts collectively accelerate the deployment and utilization of contactless payment terminals worldwide. The robust demand for faster and more secure transaction methods, coupled with a broader move away from traditional cash, creates a fertile environment for market expansion. This is further substantiated by significant market performance data, where the adoption of contactless payments continues to show strong momentum across various retail segments. According to Fiserv, in January 2025, "Special Report 2024 Holiday Season Recap – Retail Sales", contactless payments experienced a 32.3% growth during the 2024 holiday season, representing 28% of all retail sales. This sustained growth reflects the integral role contactless terminals play in meeting evolving payment preferences and supporting the ongoing digital transformation of commerce.

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Key Market Challenges

A significant challenge impeding market expansion stems from persistent concerns regarding security risks, including data breaches and cyber-attacks. These concerns directly hamper the growth of the Global Contactless Payment Terminals Market by eroding consumer confidence in the safety of tapping devices for transactions. Publicized incidents of data compromise, even if not directly related to contactless technology itself, foster a general apprehension that can slow adoption rates and limit the frequency of use.

Furthermore, businesses tasked with implementing and managing these terminals face heightened apprehension due to the potential financial and reputational damage from security incidents. This directly impacts their willingness to invest in new terminal infrastructure or upgrade existing systems. According to The Payments Association in August 2025, financial crime and cyber threats were identified as the most pressing challenge for payments businesses, cited by around a third of respondents. Such pervasive industry concern translates into more cautious investment cycles and increased demands for robust, but often costly, security protocols, thereby restraining the overall market expansion of contactless payment terminals.

Key Market Trends

The adoption of Soft POS (Tap-to-Phone) solutions by small and micro-merchants represents a significant trend in the global contactless payment terminals market. This innovation allows businesses to convert standard NFC-enabled smartphones into fully functional payment terminals simply through an application, thereby eliminating the need for expensive, dedicated hardware. This democratizes access to modern payment acceptance infrastructure, particularly for smaller businesses that might have found traditional POS systems cost-prohibitive. For example, in April 2025, Visa announced that its Tap to Phone solution experienced a 200% increase in usage over the past year, supporting millions of sellers globally, with nearly 30% of these sellers being new small businesses. This expansion facilitates greater financial inclusion by enabling a broader array of merchants to accept contactless payments, driving increased transaction volumes and wider terminal deployment.

Another pivotal trend is the enhanced security and personalization achieved through the integration of Artificial Intelligence and Machine Learning into contactless payment terminals. These advanced technologies provide robust fraud detection capabilities by analyzing transaction patterns and identifying anomalies in real-time, which is crucial for maintaining consumer trust in digital payments. Beyond security, AI and ML algorithms enable terminals to offer personalized customer experiences, such as tailored promotions and loyalty rewards, based on individual purchasing behavior. According to a July 2025 report by Feedzai, cited by Gopher Security, nine out of ten financial institutions are utilizing AI for fraud detection, underscoring the vital role these technologies play in securing contactless transactions. This dual benefit of superior security and customized engagement drives both merchant adoption and consumer preference for advanced contactless solutions.

Segmental Insights

The Healthcare segment is emerging as the fastest-growing sector within the Global Contactless Payment Terminals Market. This rapid expansion is primarily driven by the imperative for enhanced hygiene and safety, particularly underscored by recent global health concerns, which necessitates minimizing physical contact during transactions. Furthermore, contactless solutions significantly improve the patient experience by offering unparalleled convenience, faster payment processing, and streamlined administrative workflows for providers. The growing consumer expectation for digital payment options, mirroring trends in other industries, compels healthcare organizations to adopt these modern technologies to boost efficiency, improve cash flow, and ensure patient satisfaction.

Regional Insights

Europe leads the global contactless payment terminals market, driven by a confluence of favorable factors. The region benefits from a robust regulatory landscape, notably the European Payment Services Directive (PSD2), which establishes a secure environment for electronic payments. This directive, alongside Strong Customer Authentication requirements, supports advanced security protocols while allowing for streamlined contactless transactions, particularly for lower value payments, thereby enhancing user convenience. Complementing this is Europe's well-established banking infrastructure and the widespread deployment of Near Field Communication (NFC) technology in payment cards and terminals across diverse sectors. Moreover, evolving consumer preferences for rapid, convenient, and hygienic payment methods have significantly accelerated the adoption of contactless solutions throughout the continent.

Recent Developments

• In November 2025, Adyen expanded its in-person payment offerings with the release of two new terminals, the S1E4 Pro and S1F4 Pro. The S1E4 Pro is a robust, all-in-one mobile device built to withstand challenging environments in sectors such as food and beverage, featuring spill-proof and dust-proof ratings. The S1F4 Pro is a portable Android device with integrated printing capabilities, offering enhanced flexibility for retail and service industries. Both terminals support various payment methods, including tap, insert, swipe, and QR code scanning, further advancing the capabilities of contactless payment terminals globally.

• In June 2025, Mollie introduced "Tap," a new smart payment terminal designed for seamless in-person transactions. This Android-based device aims to simplify contactless payment acceptance for various businesses, including salons, cafes, and market stalls. The terminal is compact and allows customers to easily tap their cards or smartphones for payment without tilting the device. Mollie Tap also integrates online and in-person sales channels, enabling businesses to manage all transactions from a single dashboard. This innovation contributes to the expansion of accessible contactless payment solutions in the Global Contactless Payment Terminals Market.

• In March 2025, Access Bank, in collaboration with Visa, launched the "Tap to Phone" solution in Nigeria. This new product transforms NFC-enabled Android smartphones into secure contactless payment terminals, allowing merchants to accept Visa payments by simply tapping a card to their phone. The initiative aims to enhance financial inclusion and modernize payment systems by reducing the reliance on traditional Point-of-Sale (POS) hardware. This development provides smaller businesses with a cost-effective method to adopt contactless payment acceptance, thereby expanding the reach of contactless payment terminals within the African market.

• In November 2024, FOMO Pay announced a strategic collaboration with Mastercard to introduce its Tap on Phone payment solution, FOMO SoftPOS, in Singapore. This innovation enables merchants to accept contactless card payments directly through an app on their smartphones. The partnership leverages Mastercard's Cloud Commerce to facilitate cloud-based transaction processing, reducing hardware dependency for businesses. This solution significantly lowers the cost of payment acceptance for small and medium-sized enterprises (SMEs), addressing their reluctance to maintain physical payment hardware and accelerating the adoption of contactless payment terminals in Asia.

Key Market Players

• Thales Group
• On Track Innovation Ltd. (OTI)
• VeriFone Inc.
• Hewlett Packard Enterprise Development LP
• Ingenico Group SA
• Visiontek Products LLC
• PayPal Holdings Inc.
• Castles Technologies
• ID Tech Solutions Inc
• NEC Corporation

Report Scope:

In this report, the Global Contactless Payment Terminals Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Contactless Payment Terminals Market, By Technology:

o   Bluetooth

o   Infrared

o   Carrier-based

o   Wi-Fi

o   Other

• Contactless Payment Terminals Market, By Payment Method:

o   Account-based

o   Credit/Debit Card

o   Stored Value

o   Smart Card

o   Other

• Contactless Payment Terminals Market, By End User Industry:

o   Retail

o   Transportation

o   Banking

o   Government

o   Healthcare

o   Other

• Contactless Payment Terminals Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Global Contactless Payment Terminals Market.

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Global Contactless Payment Terminals Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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