Efficiency and Cost-Effectiveness of Contactless Payments Fuels Africa Contactless Payments Market Growth
According to our latest study, “Africa Contactless Payments Market Size and Forecast (2021–2031), Regional Share, Trend, and Growth Opportunity Analysis – by Component, Payment Mode, Industry Vertical and Country," the market was valued at US$ 781.72 million in 2023 and is expected to reach US$ 1536.57 million by 2031; it is estimated to register a CAGR of 8.8% during 2023–2031. The report includes growth prospects owing to the current Africa Contactless Payments Market trends and their foreseeable impact during the forecast period.
Contactless payment technologies enable transactions through contactless chips embedded in payment cards, tags, wearables, and mobile phones. These technologies offer quick approval from banks for instant money transfers. Moreover, these reduce the waiting time and hassle, as well as improve the efficiency and convenience of payments. The payment method allows automation of monthly payments to save time and effort, offering useful cashback and low processing fees. According to Mastercard's New Payment Index 2022, South Africa is experiencing an increasing adoption of various digital payment methods. Mastercard's New Payments Index 2022 reported that 95% of people in South Africa used at least one emerging digital payment method in 2021. Moreover, the study found that while in-person purchases remain common, consumers are making purchases in different ways, such as loyalty points or store credit cards and through a range of digital purchasing activities. In 2022, 67% of consumers purchased from an online marketplace, 66% bought from mobile apps, and 49% bought a service via an online subscription.
Africa Contactless Payments Market Share (%) – by Component, 2023 and 2031
Africa Contactless Payments Market Size and Forecast (2021 - 2031), Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Component (Hardware, Software, and Services), Payment Mode (Smartphones, Smart Cards, POS Terminals, and Others), Industry Verticals (Retail, Transportation and Logistics, Hospitality, Healthcare, Media and Entertainment, and Others) and Country
Africa Contactless Payments Market Size, Growth by 2031
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Source: The Insight Partners Analysis
Restaurant owners face issues in maintaining their account books. Contactless payment methods help restaurants save money and have lower credit card processing fees than manually keyed-in payments. Moreover, contactless payment speeds up transactions which is useful in crowds. For example, Barclaycard provides contactless credit cards, using which transactions take half a second to process, which is seven times faster than paying with a chip card and entering a PIN. Thus, the efficiency and cost-effectiveness of contactless payments drive the contactless payment market growth.
Visa, Mastercard, IBA Group, Giesecke + Devrient GmbH, IDEMIA, CityCard Technology Ltd, EcoCash, Ingenico, Nedbank Ltd, and Sudo Africa, Inc. are among the key players profiled in the Africa Contactless Payments Market report. Several other major players were also studied and analyzed to get a holistic view of the market and its ecosystem.
The report includes the Africa Contactless Payments Market forecast by component, payment mode, and industry vertical. Based on component, the market is divided into hardware, software, and services. In terms of revenue, the hardware segment held the largest Africa Contactless Payments market share in 2023 and is expected to register the highest CAGR during the forecast period. Contactless payment hardware encompasses physical devices and technology utilized to facilitate secure transactions without physical contact between the payment device and the point-of-sale (POS) terminal. This advanced technology leverages radio frequency identification (RFID) and near-field communication (NFC) to conduct transactions using debit, credit, smartcards, or other payment devices. The 3-in-1 Reader, Terminal, Mini, Keypad, PINPad Pro, Flex, and POS+ are a few examples of contactless payment hardware. Contactless payment hardware is a critical enabler of the modern, customer-centric payment ecosystem. These technologies help businesses meet the increasing demand for faster, safer, and more convenient transactions and provide significant operational efficiencies, security benefits, and opportunities for enhanced customer engagement.
The scope of the Africa Contactless Payments Market report focuses on South Africa, Ethiopia, Egypt, Nigeria, and the Rest of Africa. Nigeria held the largest share in Africa contactless payments market in terms of revenue. As per the ACI Worldwide 2024 Prime Time for Real-Time report, Nigeria registered a 54% growth in real-time digital transactions between 2022 and 2023, solidifying its position as the leader in Africa for real-time payment volume and growth. The introduction of the National Instant Payment Scheme (NQR) by the Nigeria Inter-Bank Settlement System (NIBSS) in March 2021 established an interoperable QR-code standard and is a key driver in enabling seamless Person-to-Business (P2B) and Person-to-Person (P2P) payments. As a result, real-time payments accounted for 27.7% of all transactions in Nigeria in 2023, projected to rise by 50.1% by 2028. Real-time payments are rapidly emerging as a viable alternative to cash, which has been a dominant payment method historically in the country.
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