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Contactless Payments – Capitalizing customer trust in contactless payments market
The consumers are readily increasing their expenditure via contactless payments which would lead to a significant growth for financial institutions. Since long, banks are avoiding contactless payments technology and only the top leading financial institutions are conducting contactless payments. PayPal, Google and Isis Mobile Payment Alliance are some of the non banking institutions that are embracing mobile wallets, NFC and the supporting infrastructure. The contactless payments service has always been a subject of interest for both acquirers and issuers across the globe. There are many challenges related to contactless payments, which arise because of lack of security issues.
Some of the major smart phone manufacturers are installing NFC support in their next handset upgrade, which would give a kick start to contactless payment technology. In various regions due to increasing early adopters, non financial companies and banks adopting the contactless technology would simultaneously grow this market and will keep aside and kind of disintermediation. With different players in the ecosystem of contactless payments, there are many different approaches that are being adopted. One of them is that financial institutions are preparing those solutions that are more scalable in response to the industry scenarios.
Early adopters in the payments industry are being convinced with the benefits of contactless payments. However, banks are making huge efforts and investments to convince consumers and merchants about the safety, convenience and cost effectiveness involved of using contactless payments. The issuers and acquirers both agree that there have been massive changes in this sector which is going to affect the landscape of contactless payments. These new developments in this sector are enabling the ecosystem players to be prepared to capitalize their business. These emerging technologies have proved to be very efficient and popular with the customers, financial institutions and merchants worldwide demanding fewer resources.
It is being expected from contactless payments market that large potential gain are to be taking place from mobile payment market. Though there are various risks and cost involved which become the major issues. Each prospective player in the contactless payment ecosystem is aiming to gain a large share of benefits arriving while incurring less costs and risk as possible. The clear stating of common standards in mobile payments infrastructure is a huge undertaking. As a result, the consensus view that staying in the market is very much possible with one's cooperation. However, the large number of players is attempting to become part of this contactless payments space has meant that even the attempts at cooperation have occurred in a highly fragmented way.
MarketsandMarkets forecasts the contactless payments market to grow from $4.32 billion in 2013 to $9.88 billion in 2018 at a CAGR of 18% during 2013 to 2018.
Contactless Payments Market [by Solutions (Payment Terminal, Business Management, Card Issuance, Anti-Skimming), by Services (Consultation, Integration, Value Added Services)] - Global Advancements, Market Forecasts and Analysis (2013-2018)
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