Global Proximity Payment Market Set to Surpass $26 Billion by 2027
DUBLIN, Aug. 8, 2022 /PRNewswire/ -- The "Global Proximity Payment Market By Offering, By Application, By Regional Outlook, Industry Analysis Report and Forecast, 2021 - 2027" report has been added to ResearchAndMarkets.com's offering.
The Global Proximity Payment Market size is expected to reach $26.4 billion by 2027, rising at a market growth of 11.6% CAGR during the forecast period. With proximity payment technology, devices can communicate and carry out payment generally within a distance of 4 cm.
This mode of payment enables customers to pay for goods and services via smartphones and other devices at a physical point-of-sale (POS) terminal. In addition, a smartphone that utilizes Near Field Communication (NFC) technology can initiate proximity payment. Additionally, in NFC payment, the reader and payment devices must be close to each other in order to initiate the transaction, so that NFC chips can exchange cryptographic data to finish the transaction.
Moreover, the growth of the proximity payment market is directly proportional to the growth in acceptance of smartphones and penetration of high-speed internet, and growing utilization of proximity payments among the merchants. The expansion and growth of mobile point of sale (mPOS) infrastructure have been increased due to the growing popularity of mobile-based proximity payments.
In addition, the emerging trend in the mPOS framework is due to the higher shift toward a cashless system and the arrival of in-person payment experiences. Additionally, merchants, restaurants, and retailers are the biggest end-user segments that accepted proximity payments methods in their current businesses.
Market Growth Factors:
Safer and streamlined and mechanism of proximity payment
The proximity payments can be done within the span of 15 seconds and are significantly faster as compared to traditional payment methods. With a low amount of handling and processing of cash happening, transactions are finishd at a rapid rate. As a result, turnover is expected to increase and queues are a highly unlikely scenario. In proximity payments, there is no requirement for pin number as a transaction only requires a tap on a reader, the number of staff behind the management and handling of payment is significantly reduced.
Growing acceptance of Smartphones and penetration of high-speed Internet
Countries such as India, Canada, and China have witnessed an increasing adoption rate of smartphones in the last couple of years. Additionally, the penetration of 3G and 4G connectivity has allowed customers to achieve seamless access to conduct payments on their smartphones. In addition, the growth of the proximity payment market is expected to be fueled by the massive traction of 5G networks across North America, Europe, Asia, and the Middle East. Moreover, massive development in the distribution network of smartphone organizations has increased the availability of smartphones for end users.
Market Restraining Factor:
Concerns about data security and breaches during payments
Cutting-edge payment technologies provide a host of benefits and convenience to customers. Conversely, the growth of the proximity payment market is expected to be hindered by the growing number of concerns about data security and breaches. As a result, consumers are not willing to initiate payments through proximity payment, as they are worried about the risk of their financial data being accessed by third-party mobile service vendors.
Scope of the Study
Market Segments Covered in the Report:
Key Market Players
Key Topics Covered:
For more information about this report visit https://www.researchandmarkets.com/r/wp8xib
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