The global proximity payment market is forecast to grow at a compound annual growth rate (CAGR) of more than 11% during the forecast period from 2021-2030, and the market's value anticipates to reach US$46.5 billion by 2030.

Devices can communicate & conduct payments at a distance of 4 centimeters with proximity payment technology. With this form of payment, goods and services can be paid for using a mobile phone or other devices at a physical point-of-sale terminal. A mobile phone equipped with near field communication (NFC), in addition, initiates proximity payments. Additionally, NFC payment devices and readers must be close to each other to ensure that the NFC chips can exchange cryptographic data.

Factors Affecting

The proximity payment market offers real-time transaction processing, the flexibility of payment devices, reduced transaction time, and increased convenience. In addition, the massive adoption of proximity payment among merchants, increased smartphone usage, and faster connectivity have enabled retailers and customers to perform proximity payments via their smartphones.
There is a growing number of data breaches and a problem of replacing point-of-sale terminals, which hampers the market growth.
Due to urbanization, literacy levels, and an increase in tech-savvy youth generation, developing economies offer significant opportunities for proximity payment companies to expand their offerings.
The market could see growth due to developments and initiatives aimed at digitizing payments.
Impact Analysis of COVID-19

Globally, the COVID-19 pandemic has significantly affected the proximity payment industry, leading to a rise in usage, adoption of online & digitalized payment methods. In addition, banks and retailers are responding to fears regarding COVID-19 by raising their limits on proximity transactions in order to allow for higher-value payments without having to touch the terminal. As a result, proximity payment has become one of the primary growth factors for the global health crisis.

Regional Overview

Asia Pacific anticipates the highest CAGR during the forecast period. China and India have the highest number of proximity mobile payment users, mainly because newly minted middle-class consumers are shunning credit cards in favor of more convenient mobile options. It, in turn, leads to growth in the Asia Pacific region.

Leading Companies

The leading prominent players in the global proximity payment market are:

ACI Worldwide, Inc. (United Kingdom)
Alphabet Inc. (Google) (United States)
Apple Inc. (United States)
Amazon.com Inc (Unites States)
Mastercard PLC (United States)
FIS (United States)
IDEMIA (France)
Ingenico (France)
PayPal Holdings Inc. (United States)
American Express Co. (United States)
Square, Inc. (United States)
Visa Inc. (United States)
Other Prominent Players
Scope of the Report

The global proximity payment market segmentation focuses on Offering, Application, and Region.

Segmentation based on Offering

Solution
Hardware
Software
Service
Segmentation based on Application

Grocery Stores
Bars & Restaurants
Drug Stores
Entertainment Centers
Others
Segmentation based on Region

North America
The U.S.
Canada
Mexico
Europe
Western Europe
The UK
Germany
France
Italy
Spain
Rest of Western Europe
Eastern Europe
Poland
Russia
Rest of Eastern Europe
Asia Pacific
China
India
Japan
Australia & New Zealand
ASEAN
Rest of Asia Pacific
Middle East & Africa (MEA)
UAE
Saudi Arabia
South Africa
Rest of MEA
South America
Brazil
Argentina
Rest of South America