Contactless EMV Cards Sales Market Outlook

The global contactless EMV cards market is anticipated to reach approximately USD 37 billion by 2035, growing at a compound annual growth rate (CAGR) of around 15.5% during the forecast period from 2025 to 2035. This growth can be attributed to the increasing consumer demand for convenient and secure payment methods, especially in light of the ongoing technological advancements in payment processing systems. Additionally, the rising trend of digitalization across various sectors, including retail and transportation, has further accelerated the adoption of contactless payment solutions. The convenience offered by contactless EMV cards is driving up their usage frequency, resulting in a greater penetration of contactless technology in everyday transactions. Lastly, the COVID-19 pandemic has significantly influenced consumers' preferences towards contactless payments, thereby reinforcing the market's expansion.

Growth Factor of the Market

The growth of the contactless EMV cards market is influenced by several factors that enhance their utility and acceptance across various industries. Firstly, the increasing global penetration of smartphones and digital wallets has made consumers more comfortable with cashless transactions, thereby boosting the demand for contactless cards. Moreover, the ongoing push for social distancing and hygiene during the pandemic has led businesses and consumers to prefer contactless payments over cash, further solidifying the market's growth. Additionally, as more retailers and service providers upgrade their payment infrastructure to support EMV technology, the ease of adoption for contactless cards increases substantially. The drive for improved transaction speeds also serves as an impetus for businesses to adopt contactless payment solutions, as they can significantly reduce customer wait times and improve overall service efficiency. Lastly, supportive government regulations and initiatives aimed at promoting digital payment solutions contribute to the market's positive growth trajectory.

Key Highlights of the Market

• The contactless EMV cards market is projected to grow at a CAGR of 15.5% from 2025 to 2035.
• North America is anticipated to dominate the market, accounting for approximately 35% of the global share.
• Contactless credit cards are leading the product type segment due to their widespread acceptance.
• Retail application is expected to hold a significant share, driven by a surge in consumer spending.
• Online stores are emerging as a key distribution channel for contactless EMV cards, particularly among tech-savvy consumers.

By Product Type

Contactless Credit Cards:

Contactless credit cards are a dominant segment in the contactless EMV cards market, primarily due to their extensive acceptance at points of sale worldwide. These cards allow users to make payments simply by tapping their card on a compatible terminal, eliminating the need for inserting or swiping the card. The convenience associated with contactless credit cards appeals to consumers seeking quick and hassle-free transactions, especially in retail environments where speed is essential. Furthermore, many issuers are enhancing security features on contactless credit cards, such as tokenization and biometric authentication, which further boosts consumer confidence in using these cards for everyday purchases. The growing trend of loyalty and reward programs linked with credit card usage also incentivizes consumers to adopt contactless credit cards, thereby driving growth in this segment.

Contactless Debit Cards:

Contactless debit cards have gained significant traction in the market, primarily driven by their convenience and the growing shift towards cashless transactions. These cards provide users with direct access to their bank accounts while enabling quick payments at various retail outlets and service providers. The ease of use of contactless debit cards has made them a preferred choice for consumers who wish to manage their spending effectively while enjoying the benefits of modern payment technology. Moreover, the availability of contactless debit cards from a wide range of financial institutions encourages broader adoption. With continuous improvements in security measures, such as encryption and fraud detection, consumers feel increasingly secure using contactless debit cards for their daily transactions, which further strengthens this segment's growth.

Contactless Prepaid Cards:

Contactless prepaid cards are increasingly popular as they offer a convenient payment method without the need for a traditional bank account. These cards can be preloaded with a specific amount of funds, allowing users to control their spending effectively. The growing appeal of financial inclusivity has propelled the demand for contactless prepaid cards among various consumer segments, particularly those who may not have access to conventional banking services. The ability to use these cards for online purchases, in retail stores, and for travel-related expenses has significantly broadened their appeal. Additionally, many companies are leveraging contactless prepaid cards for gifting and payroll purposes, contributing to the segment's expansion. As consumers become more familiar with the advantages of prepaid card solutions, the market for contactless prepaid cards is likely to continue growing robustly.

Contactless Gift Cards:

Contactless gift cards represent a unique niche within the contactless EMV cards market, catering to individuals looking for convenient gifting options. These cards can be used in various retail settings and are favored for their ease of use and the flexibility they provide to recipients. The increasing trend of digital gifting, particularly during holidays and special occasions, has fueled the demand for contactless gift cards. Retailers are also embracing contactless gift cards as part of their marketing strategies, often offering them as promotional tools to attract customers. The integration of contactless technology enhances the user experience by allowing recipients to redeem their gift cards with minimal effort, reinforcing their popularity. As consumers continue to appreciate the convenience and versatility of gift cards, their presence in the contactless EMV cards market is expected to grow.

Contactless Corporate Cards:

Contactless corporate cards are emerging as a significant segment within the contactless EMV cards market, specifically designed to meet the needs of businesses managing employee expenses. These cards enable companies to streamline their expense management processes by allowing employees to make purchases directly while ensuring adherence to company policies. The increased adoption of corporate cards is driven by the need for greater control and transparency in business expenditures. Additionally, the integration of contactless technology expedites transactions, which is particularly beneficial for employees making purchases on-the-go. By equipping employees with contactless corporate cards, businesses can simplify the reimbursement process and enhance operational efficiencies. The rising trend of remote work and digital transformation is expected to further propel the demand for contactless corporate cards as companies seek to adapt to new operational realities.

By Application

Retail:

The retail sector is one of the foremost applications of contactless EMV cards, significantly contributing to the market's growth. As consumer preferences shift towards fast and seamless transactions, retailers are increasingly adopting contactless payment solutions to enhance the shopping experience. Contactless payments not only reduce transaction times but also minimize physical contact, a feature that has become paramount in the wake of the COVID-19 pandemic. Retailers that embrace contactless EMV cards can offer customers the convenience of tap-and-go transactions, which have proven to increase overall customer satisfaction and loyalty. Additionally, the integration of loyalty programs with contactless payments allows retailers to gather valuable data on consumer spending habits, facilitating targeted marketing strategies. As the retail landscape continues to evolve, the significance of contactless EMV cards as a preferred payment option is expected to grow.

Transportation:

Contactless EMV cards are revolutionizing the transportation sector by providing a seamless payment solution for public transit systems and other transport services. The ability to make quick payments without the need for cash or physical tickets has enhanced the convenience for commuters. Many cities around the world have begun to incorporate contactless EMV technology into their public transportation systems, allowing users to tap their cards on designated readers for quick access to trains, buses, and other transport services. This not only expedites the boarding process but also improves overall operational efficiency for transit authorities. Furthermore, the integration of contactless payments into ride-sharing services and vehicle rentals offers consumers enhanced flexibility and convenience. As urbanization continues to increase, the demand for efficient and convenient payment methods in transportation is expected to drive the adoption of contactless EMV cards in this sector.

Hospitality:

The hospitality industry is another key application for contactless EMV cards, as hotels and restaurants seek to provide guests with a safe and efficient payment experience. The use of contactless payments in hotels can facilitate various transactions, from check-ins and room service to dining at on-site restaurants. This technology reduces wait times and enhances the overall guest experience, which is critical in an industry that thrives on customer satisfaction. Additionally, many establishments are adopting contactless payment solutions to comply with health protocols and to promote hygienic practices. The ability to link contactless EMV cards with loyalty programs also allows hospitality businesses to reward frequent customers, further incentivizing their use. As the industry continues to recover and adapt post-pandemic, the adoption of contactless EMV cards is likely to grow rapidly.

Healthcare:

In the healthcare sector, contactless EMV cards are increasingly being utilized to facilitate quick and secure payments for medical services and products. Patients appreciate the ease of making payments without the need for cash or physical interactions, which is especially important in healthcare settings where hygiene is a priority. Contactless payments streamline the billing process in hospitals and clinics, allowing for faster check-outs and reducing administrative burdens. Moreover, healthcare providers and pharmacies that accept contactless payments can enhance patient satisfaction and encourage timely payments. The incorporation of contactless EMV cards into health insurance plans is also gaining traction, providing patients with a seamless payment method for co-pays and deductibles. As the healthcare industry continues to prioritize patient experience and operational efficiency, the role of contactless EMV cards is expected to expand significantly.

Banking:

The banking sector plays a crucial role in the contactless EMV cards market, as financial institutions are instrumental in issuing these cards to consumers. Banks are increasingly recognizing the importance of contactless technology in attracting and retaining customers, as it aligns with the growing trend of digital banking. By offering contactless EMV cards, banks can enhance their product offerings and cater to the evolving preferences of their clientele. These cards provide customers with a convenient way to access funds and make payments while ensuring security features are embedded within the technology. Additionally, banks are incorporating contactless capabilities into their mobile banking apps, enabling users to manage their finances seamlessly. As the landscape of banking continues to evolve with the incorporation of technology, the demand for contactless EMV cards is projected to remain strong.

By Distribution Channel

Online Stores:

Online stores have emerged as a vital distribution channel for contactless EMV cards, particularly in an era characterized by increased digital shopping. The convenience of purchasing contactless cards online appeals to tech-savvy consumers who prefer the efficiency of e-commerce transactions. Many banks and financial institutions are leveraging their online platforms to offer contactless cards, making it easy for customers to apply for and receive their cards via digital channels. The growing trend of digital wallets and payment apps also supports the rise of contactless cards sold through online stores, as consumers seek integrated payment solutions. Additionally, promotional offers and exclusive deals available on online platforms further entice customers to opt for contactless EMV cards. The alignment of online shopping trends with contactless payment technology is expected to bolster the growth of this distribution channel.

Banks:

Banks have traditionally been the primary distribution channel for contactless EMV cards, as they are responsible for the issuance and management of these cards. Financial institutions are increasingly promoting contactless options to attract customers and retain their competitive edge in an evolving market. By partnering with payment networks, banks can offer a wide range of contactless card options tailored to different customer segments, including credit, debit, and prepaid cards. Additionally, banks are enhancing their marketing efforts to educate customers about the benefits of contactless payments, thereby fostering greater adoption. Convenience, security, and the ability to manage finances digitally are key selling points that banks emphasize in their promotional strategies. As the banking landscape continues to evolve with technological advancements, the importance of banks as a distribution channel for contactless cards remains paramount.

Retailers:

Retailers serve as a crucial distribution channel for contactless EMV cards, especially as the demand for quick and seamless payment solutions grows. Many retailers are partnering with financial institutions to offer co-branded contactless cards that align with their loyalty programs. This strategy not only enhances customer engagement but also incentivizes consumers to use contactless payment methods while shopping. Retailers that prioritize contactless payment options can improve the overall shopping experience, reduce checkout times, and increase customer satisfaction. The integration of contactless technology in retail environments also enhances security, as transactions are processed without the need for physical contact. As more retailers recognize the importance of contactless payments in attracting customers, they are likely to expand their offerings in this domain.

Financial Institutions:

Financial institutions play a pivotal role in the distribution of contactless EMV cards, as they are accountable for the issuance and management of these payment solutions. With the increasing demand for contactless technology, financial institutions are adjusting their strategies to offer a variety of contactless card options tailored to diverse customer needs. The continuous evolution of digital banking is encouraging financial institutions to enhance their payment solutions, including the integration of contactless features in their offerings. By collaborating with payment networks and acquiring the latest technologies, financial institutions can provide secure, user-friendly, and efficient contactless payment solutions. As competition intensifies in the financial sector, the emphasis on contactless EMV cards will likely continue to grow, solidifying their position as essential payment options for consumers.

Third-Party Sellers:

Third-party sellers are emerging as a significant distribution channel in the contactless EMV cards market, serving as intermediaries between card issuers and consumers. These sellers often include digital wallet providers and fintech companies that offer a range of financial services, including contactless payment options. By leveraging technology and partnerships with banks and payment networks, third-party sellers can provide flexible and innovative contactless solutions to consumers. The convenience of using third-party platforms for purchasing contactless EMV cards appeals to a tech-savvy demographic that values efficiency and accessibility. Additionally, many third-party sellers are incorporating value-added services, such as budgeting tools and spending analytics, to enhance the overall user experience. As the demand for contactless payments continues to rise, the role of third-party sellers in the distribution channel is expected to grow significantly.

By Region

In the global context, the contactless EMV cards market is witnessing robust growth across various regions, with North America leading the charge. This region is projected to account for approximately 35% of the market share by 2035, driven by widespread adoption of contactless payment technology among consumers and retailers alike. The United States is at the forefront, with major banks and financial institutions aggressively promoting contactless EMV cards. Additionally, the established infrastructure for digital payments and a high level of consumer awareness regarding the benefits of contactless transactions contribute to the region's dominance. The CAGR for North America is expected to be around 16% during the forecast period, reflecting the increasing shift towards cashless transactions amidst changing consumer preferences.

Europe is also positioned as a significant player in the contactless EMV cards market, with an anticipated market share of around 30% by 2035. Countries such as the United Kingdom, Germany, and France are embracing contactless payment solutions in various sectors, including retail, transportation, and hospitality. The European market is characterized by a strong regulatory framework that encourages the adoption of secure payment methods. As digital payment technologies continue to evolve, the demand for contactless EMV cards is expected to grow. Additionally, Asia Pacific is emerging as a region with tremendous growth potential, projected to grow at a CAGR of approximately 17% as countries like China and India rapidly embrace digital payment solutions. The increasing population of tech-savvy consumers, coupled with government initiatives supporting cashless economies, is likely to drive this growth trend in the Asia Pacific region.

Opportunities

The opportunities present in the contactless EMV cards market are abundant, particularly as consumer behavior shifts towards favoring speed and convenience in payment options. One of the most promising avenues for growth lies in the integration of contactless technology with emerging digital platforms, such as mobile wallets and e-commerce sites. As more consumers gravitate towards online shopping and digital transactions, the demand for contactless EMV cards will likely experience a significant surge. Furthermore, partnerships between banks, retailers, and fintech companies create a fertile environment for innovation, allowing for the development of new products that cater to the evolving needs of consumers. The rise of contactless payments in developing regions also presents a considerable opportunity for expansion, as financial institutions seek to cater to unbanked and underbanked populations through accessible payment solutions.

Additionally, the increasing emphasis on security in financial transactions presents an opportunity for growth in the contactless EMV cards market. Innovations such as biometric authentication and advanced encryption methods can enhance the security of contactless payments, thereby boosting consumer confidence in using these solutions. As businesses prioritize customer safety and data protection, the integration of robust security features into contactless EMV cards can be a pivotal selling point. Moreover, the ongoing development of loyalty programs linked to contactless payments can drive consumer engagement, as businesses seek to incentivize repeat purchases. The convergence of these factors positions the contactless EMV cards market for substantial growth, paving the way for a future where contactless payments become the standard for everyday transactions.

Threats

Despite the promising growth trajectory of the contactless EMV cards market, several threats could impede its progress. One of the most significant threats stems from the prevalence of cyber threats and fraudulent activities targeting digital payment systems. As the adoption of contactless technology increases, so does the risk of hacking and data breaches, which can undermine consumer trust in these payment methods. In response, financial institutions must continuously enhance their security measures and educate consumers about safe payment practices to mitigate these risks. Additionally, the potential for regulatory changes regarding contactless payment processing could pose challenges for market participants. Governments often implement new regulations to address emerging security concerns, which could impose additional compliance burdens on card issuers and retailers.

Another noteworthy threat to the contactless EMV cards market is the resistance from certain consumer segments who may prefer traditional payment methods, such as cash. Despite the growing trend towards digital payments, some individuals remain skeptical about the security and reliability of contactless transactions. This reluctance could hinder the widespread acceptance and adoption of contactless EMV cards. Moreover, market saturation in developed regions could lead to diminished growth opportunities, prompting companies to seek expansion in emerging economies where consumer acceptance is still developing. As such, addressing these threats through proactive strategies will be crucial for stakeholders aiming to navigate the complexities of the contactless EMV cards market effectively.

Competitor Outlook

• Visa Inc.
• Mastercard Incorporated
• American Express Company
• Discover Financial Services
• JCB Co., Ltd.
• UnionPay International
• Gemalto N.V. (Thales Group)
• Infineon Technologies AG
• Giesecke+Devrient GmbH
• NXP Semiconductors N.V.
• Identiv, Inc.
• CardLogix Corporation
• Verifone Systems, Inc.
• Diebold Nixdorf, Incorporated
• Worldpay, Inc.

The competitive landscape of the contactless EMV cards market is characterized by the presence of major players who are continually innovating to meet the demands of consumers and businesses alike. Visa Inc. and Mastercard Incorporated lead the market, with their extensive networks and partnerships enabling widespread acceptance of contactless payments. These companies are investing significantly in research and development to enhance the security and functionality of their contactless card offerings. Additionally, their collaboration with financial institutions, retailers, and technology providers ensures that they remain at the forefront of the contactless payment revolution. The continuous evolution of their product offerings allows them to cater to diverse consumer preferences, thereby maintaining their competitive edge in this dynamic market.

American Express and Discover Financial Services are also key competitors in the contactless EMV cards space, leveraging their strong brand recognition and customer loyalty to capture market share. These companies focus on providing enhanced rewards and benefits to cardholders, thereby encouraging the adoption of contactless payment solutions. Their emphasis on customer service and satisfaction helps them retain existing customers while attracting new ones. Moreover, they are actively involved in expanding their contactless payment capabilities across various sectors, including retail and hospitality, to enhance the overall consumer experience.

Beyond the traditional card networks, companies like Gemalto (Thales Group) and NXP Semiconductors are integral to the infrastructure that supports contactless EMV cards. These firms provide technological solutions that enable secure and efficient contactless payments. Their expertise in cybersecurity and payment technology positions them as essential partners for financial institutions and card issuers. Furthermore, as the demand for contactless solutions grows, these companies are continuously innovating to develop advanced features, such as biometric authentication and tokenization, which enhance the security of contactless transactions.