Contactless Payment Statistics 2025: Growth, Trends, and Market Analysis

In a bustling New York café, a customer grabs her coffee and taps her phone on a sleek payment terminal. A second later, the beep signals that her payment is complete. This seamless, almost magical interaction is the hallmark of contactless payments. Over the last decade, the way we pay for goods and services has transformed. The global adoption of contactless technology surged during the pandemic, and its momentum shows no sign of slowing down. As we step into 2025, contactless payments are not just a convenience—they are redefining commerce and consumer expectations.

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Here are the top 7 statistics that highlight the current state of contactless payments in 2024:

82% of global consumers now use contactless payment methods, up from 74% in 2022.
In the United States, 65% of card transactions are contactless-enabled, marking a 20% increase over the past year.
$15.3 trillion is the projected global value of contactless payments in 2024, up from $13.5 trillion in 2023.
78% of small businesses that adopted contactless technology in 2023 reported higher customer satisfaction.
Mobile wallet usage is expected to reach 5.2 billion users globally by the end of 2024, representing a 9% YoY growth.
The adoption of NFC technology has risen by 45% in North America, driven by consumer demand for faster transactions.
Tap-to-pay transactions are now 30% faster than chip-based payments, reducing checkout time and enhancing customer experience.

Growth and Adoption Rates

The adoption of contactless payments has grown exponentially over the past decade, driven by both technology and consumer demand:

The global contactless payment market is expected to grow at a CAGR of 18.9% from 2024 to 2030.
58% of U.S. consumers prefer contactless payments over traditional card-swiping methods, compared to just 31% in 2019.
Europe leads the way, with 90% of in-store transactions now processed via contactless methods in countries like the UK and Sweden.
By the end of 2024, contactless payment users will exceed 1 billion in Asia-Pacific, making it the fastest-growing region.
The average transaction value of contactless payments is projected to rise to $78 in 2024, reflecting increased consumer trust.

Rising Average Transaction Value in Contactless Payments

Governments in emerging markets, such as India and Brazil, have rolled out initiatives to expand contactless infrastructure, boosting adoption by over 20% annually.
The number of merchants accepting contactless payments in the U.S. has doubled, reaching 12 million in 2023.

Post-Pandemic Growth in Contactless Payments

The COVID-19 pandemic acted as a catalyst for the widespread adoption of contactless technology:

Between 2020 and 2023, contactless transactions increased by 300% globally.
67% of consumers switched to contactless payments during the pandemic to avoid handling cash or touching payment terminals.
In 2023 alone, digital wallet transactions accounted for 29% of all in-store sales, compared to just 18% in 2019.
Healthcare and essential service sectors saw contactless usage increase by 70%, as safety became a top priority.
Banks reported issuing over 500 million contactless-enabled cards globally in 2023, catering to growing demand.
The U.S. saw a 50% increase in the adoption of contactless payment in grocery stores between 2021 and 2023.
Consumers report that they feel 76% safer using contactless options, citing hygiene and speed as primary factors.

Metric	Value/Trend
Global contactless transactions increase (2020-2023)	300%
Consumers switching during the pandemic	67%
Digital wallet share of in-store sales (2023)	29% (up from 18% in 2019)
Contactless use in healthcare/essential services	70% increase
Contactless-enabled cards issued (2023)	500 million
U.S. grocery store adoption (2021-2023)	50% increase
Consumer safety perception	76% feel safer

Contactless Payment Trends: Mobile Wallets vs. QR Codes vs. Tap to Pay

In the evolving landscape of contactless payments, mobile wallets, QR codes, and tap-to-pay cards are dominating the market:

Apple Pay, Google Pay, and Samsung Pay account for 65% of mobile wallet usage in the U.S.

Leading Mobile Wallet Providers Dominate U.S. Market

QR code payments surged in popularity, with 20% of U.S. merchants adopting QR technology in 2023, up from 5% in 2018.
In Asia-Pacific, QR code transactions accounted for $2.8 trillion in 2023, making it the region’s preferred contactless method.
43% of Gen Z consumers in the U.S. consider mobile wallets their primary payment method.
Tap-to-pay card transactions have grown by 35% in Europe, surpassing the usage of digital wallets in countries like Germany.
Retailers who implemented multiple contactless options (mobile wallets, QR codes, and tap-to-pay) saw a 25% increase in customer retention in 2023.
Biometric payments are an emerging trend, with 12% of contactless users globally opting for fingerprint or facial recognition authentication.

Consumer Perspective on Contactless Payments

The shift toward contactless payments is largely driven by consumer preferences for speed, convenience, and security. Here’s how consumers are shaping the landscape in 2024:

71% of consumers globally state that they prefer contactless payments over traditional methods, up from 62% in 2022.
90% of Gen Z and Millennials in the U.S. have used a contactless payment method at least once in the past month.
69% of consumers believe contactless transactions are safer than using cash, citing reduced exposure to germs and theft risks.
45% of customers are more likely to shop at retailers that offer contactless payment options.
U.S. households with annual incomes exceeding $100,000 are 2.3 times more likely to use mobile wallets as their primary payment method.
Among senior citizens, contactless card usage has grown by 38% in the past two years, driven by simplified onboarding and education campaigns.
47% of global consumers indicated they would abandon a purchase if a contactless payment option was unavailable.

The Evolution of POS Payments Technology

Point-of-sale (POS) systems are evolving rapidly to accommodate contactless and digital-first payment methods:

75% of retailers in the U.S. upgraded their POS systems between 2020 and 2023 to enable contactless payments.
Smart POS terminals that support mobile wallets and QR code scanning now account for 40% of global POS shipments in 2023.
The market for cloud-based POS systems is projected to grow at a CAGR of 19.5%, reaching $13 billion by 2028.
67% of small businesses in the U.S. now accept mobile wallet payments, up from 42% in 2020.
POS systems integrated with biometric authentication are gaining traction, with 14% of retailers deploying them in 2023.

Rising Adoption of Biometric Authentication in Retail POS Systems

Contactless-enabled vending machines have increased by 32% globally, allowing consumers to purchase without physical interaction.
AI-powered POS systems are being adopted to analyze customer spending behavior, increasing sales by up to 15% in pilot programs.

Driving Contactless Payment Adoption

Governments, financial institutions, and retailers are playing pivotal roles in driving contactless payment adoption:

The U.S. government allocated $500 million in 2023 to promote digital payment literacy among small businesses.
Visa and Mastercard waived contactless transaction fees for small merchants in emerging markets, accelerating adoption by 22% in 2023.
Retailers offering contactless payments recorded a 12% higher basket size than those relying on traditional payment methods.
In India, the Reserve Bank raised the tap-and-pay transaction limit to $66 (₹5,000) in 2023, encouraging higher-value transactions.
Digital onboarding tools provided by banks led to a 30% increase in the issuance of NFC-enabled cards in Europe.
Educational campaigns promoting contactless security helped build trust among 78% of hesitant users in North America.
Public transit systems in over 150 cities worldwide now accept contactless payments, reducing commuter wait times by 20%.

Regional Insights and Market Segmentation

Contactless payment trends vary significantly across regions, reflecting cultural, technological, and economic differences:

Asia-Pacific leads globally, with contactless payments accounting for 55% of all transactions, driven by widespread mobile wallet adoption.
In the U.S., 66% of consumers use contactless payments regularly, with metropolitan areas leading adoption.
Europe has achieved near-universal adoption, with 97% of POS terminals supporting contactless technology.
Africa’s contactless payment market is expanding at a CAGR of 20%, driven by mobile payment platforms like M-Pesa.
Latin America saw a 31% increase in contactless payments in 2023, spurred by fintech companies targeting underbanked populations.
In Canada, 80% of in-person card transactions are contactless, reflecting a strong preference for tap-to-pay technology.
The Middle East has experienced 25% YoY growth in mobile wallet adoption, with the UAE and Saudi Arabia leading the charge.

Market Size and Forecast (2024 to 2034)

The contactless payment market is on a trajectory for explosive growth, underpinned by technological advancements and changing consumer behavior:

The global contactless payment market size is projected to reach $25 trillion by 2034, growing at a CAGR of 17.8% from 2024.
North America’s market is expected to expand from $4 trillion in 2024 to $9.5 trillion by 2034, driven by NFC and mobile wallet adoption.
Emerging markets in Asia and Africa will contribute 40% of the total market growth, adding $5 trillion in value by 2034.
Contactless cards will dominate in Europe, accounting for 65% of all transactions by 2026.
Retail and food services will remain the largest sectors, representing 35% of contactless payment volume globally in 2024.

Retail and Food Services Leading Contactless Payment Growth

The U.S. mobile wallet market is forecast to grow at 21% CAGR from 2024, reaching a value of $1.9 trillion by 2030.
By 2034, over 80% of global transactions will be completed through contactless methods, transforming the way businesses operate.

Key Companies and Market Share Insights

The contactless payment ecosystem is dominated by key players who continue to innovate and expand their offerings:

Visa and Mastercard control over 80% of global contactless card transactions, leveraging their vast merchant networks.
Apple Pay accounts for 48% of mobile wallet users in the U.S., with Google Pay and Samsung Pay at 22% and 17%, respectively.
PayPal saw its contactless payment volume increase by 38% in 2023, thanks to QR code integration with small businesses.
Square reported a 23% YoY growth in contactless payment adoption among U.S. merchants, with significant traction in small and medium-sized businesses.
Stripe processed over $1 trillion in contactless payments in 2023, marking a 30% increase from the previous year.
Global fintech giant Alipay leads the Asia-Pacific market, processing 70% of mobile payments in China.
In Europe, Revolut and N26 have emerged as strong players in the contactless payment sector, adding 6 million new users in 2023.

Technological Innovations and NFC Payment Adoption

Technological advancements are driving the rapid growth of NFC (Near-Field Communication) and other innovative payment methods:

Over 90% of new smartphones released in 2023 came equipped with NFC technology, ensuring compatibility with contactless payments.
Biometric authentication, such as facial recognition and fingerprint scanning, is now integrated into 50% of mobile wallets globally.
Wearable payment devices, like smartwatches and rings, accounted for 8% of contactless transactions in 2023.
Tokenization technology has reduced fraud rates by 26% for NFC payments, increasing consumer trust.
Blockchain-based contactless payment solutions are emerging, offering zero chargeback risk for merchants.
Smart refrigerators and IoT devices are now enabling direct tap-to-order payments, transforming household retail.
Visa and Mastercard piloted “tap to pay on phone” technology with small merchants, eliminating the need for additional hardware.

The Numbers Behind the Surge in Contactless Transactions

The adoption of contactless payments is backed by staggering transaction volumes and consumer preferences:

Global contactless transactions exceeded $17 trillion in 2023, a 25% YoY increase.
45% of all card transactions worldwide are now processed via contactless methods, compared to 30% in 2020.
In the U.S., mobile wallet transactions grew by 32% YoY, totaling $1.9 trillion in 2023.
In the UK, 98% of debit card transactions under £100 were contactless in 2023.
35 billion contactless transactions were processed by Visa in 2023, marking a new milestone.
A typical contactless transaction takes only 1-2 seconds, making it 60% faster than traditional chip payments.
The average transaction value for contactless payments increased to $85 in 2023, up from $70 in 2021.

The Impact on U.S. Merchants and Small Businesses

Contactless payments are transforming the way U.S. merchants, especially small businesses, engage with customers:

78% of small businesses that adopted contactless payments reported an increase in sales and customer satisfaction.
On average, retailers saw a 20% boost in checkout speed after implementing contactless POS systems.
Businesses that accepted mobile wallet payments experienced a 12% higher average transaction value.
45% of small business owners noted that offering contactless payment options helped attract younger customers.
Nearly 60% of independent retailers invested in NFC-compatible POS terminals in 2023.
Contactless adoption reduced cash-handling costs by 15%, contributing to higher profit margins.
U.S. businesses reported a 35% decrease in fraud cases after transitioning to tokenized contactless payments.

Recent Developments

The landscape of contactless payments continues to evolve with new developments and initiatives:

Amazon introduced palm payment technology at its physical stores, allowing customers to pay by scanning their palms.
The Federal Reserve approved a pilot program to promote digital payment adoption in underserved areas of the U.S.
PayPal launched a new small business toolkit focused on QR code and NFC payment integration.
Contactless payment adoption surged in public transit systems across the U.S., reducing reliance on cash and paper tickets.
In 2024, Samsung introduced ultra-wideband (UWB) technology for more secure and seamless payments.
The introduction of central bank digital currencies (CBDCs) in countries like India and China is expected to integrate with existing contactless infrastructures.
Sustainability initiatives tied to contactless payments, such as using biodegradable cards, gained traction among eco-conscious consumers.

Conclusion

Contactless payments are no longer just a convenience; they have become a fundamental part of the modern payment ecosystem. In 2024, with $15.3 trillion in projected global transactions, their impact is undeniable. Consumers appreciate the speed, security, and simplicity, while businesses benefit from higher efficiency and reduced operational costs. With technological advancements like biometric authentication, wearable devices, and blockchain solutions, the future of contactless payments is poised for even greater innovation. As we look toward 2034, the contactless revolution will likely redefine how we transact, with nearly 80% of global transactions expected to be contactless. This is not just a trend—it is the future of payments.

Sources

Barry Elad is a dedicated tech and finance enthusiast, passionate about making technology and fintech concepts accessible to everyone. He specializes in collecting key statistics and breaking down complex information, focusing on the benefits that software and financial tools bring to everyday life. Figuring out how software works and sharing its value with users is his favorite pastime. When he's not analyzing apps or programs, Barry enjoys creating healthy recipes, practicing yoga, meditating, and spending time in nature with his child. His mission is to simplify finance and tech insights to help people make informed decisions.