Increasing adoption of mobile payment services has led to the intensive utilisation of POS with the launch of e-wallet and Apple Watch. Banking entities, payment gateways, and payment processors are expected to expand the capabilities for accommodating the new enhanced technology. The emergence of the mobile wallet services has allowed users to pay for services through mobile devices or through cashless payment modes, which have further enhanced near field communication market growth.

Enhanced digital payment platforms

The increasing demand for NFC-based payment solutions has led the manufacturers to develop an enhanced version of the digital payment platform, further encouraging the market growth. Growing penetration of wearable technology devices as a significant component of Internet of Things with lowered costs have also, according to the analysts, immensely contributed to the industry growth.

Mobile wallets

The emergence of mobile wallets, such as Android Pay, Apple Pay, and Samsung Pay, are also expected to further drive the substantial mobile payments growth, owing to their capability of paying through mobile phones instead of cards or any other cashless payment modes. The increasing number of vendors is expected to increase the concentration and propel the development of near field communication infrastructure, thus accelerating the market growth. The increasing need for lowering the cost of ownership and the increased convenience need will continue to dictate the market development.

Software a fast growing segment

In terms of device operating mode, the reader emulation segment led the market with a largest revenue share of 40.8% in 2024, and by offering, the software segment is anticipated to expand at the fastest CAGR over the forecast period.  As far as vertical markets are concerned, the retail segment held the leading revenue share in the global market in 2024 on account of the rapidly growing usage of contactless payment solutions in this industry.

Some of the key players in this market include companies such as, NXP Semiconductors, Broadcom, Qualcomm Technologies, Samsung, Texas Instruments, ST Microelectronics, Infineon Technologies, Sony, Rambus and Apple.