Africa Contactless Payments Market Size and Forecast 2021 - 2031, Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Component, Payment Mode, Industry Verticals and Country

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The Africa contactless payments market size was valued at US$ 781.72 million in 2023 and is expected to reach US$ 1536.57 million by 2031; it is estimated to record a CAGR of 8.8% from 2023 to 2031.

The Africa contactless payments market is segmented into six major countries- South Africa, Ethiopia, Egypt, Nigeria, and the Rest of Africa. Nigeria dominated the market in 2023, followed by South Africa and Egypt, respectively. 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, which established an interoperable QR-code standard, 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

As per the SpendTrend23 report by Visa and Discovery Bank, South Africa is currently at the forefront of embracing contactless payments in Africa. According to the Country Manager for Visa South Africa, the adoption of near-field communication (NFC) payments initially gained momentum during the COVID-19 pandemic to minimize physical contact. Moreover, it has experienced significant growth due to its user-friendly nature. The Government highlighted that during 2021-2022, 72% of all in-person transactions globally and over 50% of digital transactions in South Africa were contactless. According to the manager, contactless and mobile payments are increasingly becoming popular among consumers in South Africa.

According to Mastercard's New Payment Index 2022, the adoption of a wider range of digital payment methods is accelerating in Egypt, with technology driving the future of payments. Beyond awareness of solutions such as digital cards, Buy Now Pay Later (BNPL), and open banking, consumers in Egypt are increasingly incorporating these tools into their daily transactions. The report reveals that 88% of consumers in Egypt have utilized at least one emerging payment method in the past year i.e. 2021. Out of this, 35% used tappable smartphone mobile wallets, 27% used digital money transfer apps, and 24% made payments via QR codes. Additionally, consumers are expanding their purchase channels, increasingly making transactions through voice assistants and social media platforms.

Based on industry vertical, the market is categorized into retail, hospitality, healthcare, transportation & logistics, media & entertainment, and others. The retail segment held the largest share in the Africa contactless payments market in 2023. Contactless payment in retail refers to a secure and convenient payment method that enables customers to conduct transactions by tapping a payment card or another device near a point-of-sale terminal equipped with contactless payment technology. This technology, also known as tap-and-go or tap, has been in existence since the 1990s and has since expanded to encompass numerous banks, credit card companies, merchants, and retailers worldwide. The widespread adoption of contactless payment in retail has been facilitated by the increasing number of merchants accepting this form of payment, with over half of retailers in countries such as South Africa, Ghana, and Cambodia currently accepting contactless payments. This trend is supported by the availability of mobile wallet apps and wearable devices that facilitate contactless transactions, contributing to the technology's growing popularity and profound impact on the retail industry.

Within transportation and logistics, there has been a notable rise in the adoption of contactless payment methods for streamlining and improving the payment process across a range of services. Contactless payments have fundamentally transformed the way commuters handle fare payments in public transportation. This technology has been integrated into various facets of transportation and logistics, encompassing public transportation turnstiles, parking garage checkout terminals, road tolls, and the purchase of tickets for buses, subways, and trains. The utilization of contactless payment methods in transportation and logistics yields several significant advantages, including increased throughput, decreased customer waiting times, and the establishment of a more efficient and user-friendly payment experience.

Visa, Mastercard, IBA Group, Giesecke + Devrient GmbH, IDEMIA, CityCard Technology Ltd, EcoCash, Ingenico, Nedbank Ltd, and Sudo Africa, Inc are among the key Africa contactless payments market players that are profiled in this market study.

The overall Africa contactless payments market size has been derived using both primary and secondary sources. Exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the Africa contactless payments market size. The process also helps obtain an overview and forecast of the market with respect to all the market segments. Also, multiple primary interviews have been conducted with industry participants to validate the data and gain analytical insights. This process includes industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the Africa contactless payments market.

Product Code: TIPRE00039407

1. Introduction

1.1 The Insight Partners Research Report Guidance
1.2 Market Segmentation

2. Executive Summary

2.1 Key Insights
2.2 Market Attractiveness

3. Research Methodology

3.1 Secondary Research
3.2 Primary Research
- 3.2.1 Hypothesis formulation:
- 3.2.2 Macro-economic factor analysis:
- 3.2.3 Developing base number:
- 3.2.4 Data Triangulation:
- 3.2.5 Country level data:

4. Africa Contactless Payments Market Landscape

4.1 Overview
4.2 PEST Analysis
4.3 Ecosystem Analysis
- 4.3.1 Hardware Providers
- 4.3.2 Solution and Service Providers
- 4.3.3 Logistics and Supply Chain Management Providers
- 4.3.4 End Users
- 4.3.5 List of Vendors in the Value Chain

5. Africa Contactless Payments Market - Key Market Dynamics

5.1 Africa Contactless Payments Market - Key Market Dynamics
5.2 Market Drivers
- 5.2.1 Increase in Government Initiatives to Promote Digital Payments
- 5.2.2 Efficiency and Cost-Effectiveness of Contactless Payments
5.3 Market Restraints
- 5.3.1 Potential Security Concerns and Limitations
5.4 Market Opportunities
- 5.4.1 Technological Advancements in Contactless Payments
- 5.4.2 IoT-Embedded Contactless Payment
5.5 Future Trends
- 5.5.1 Voice-Based Payments with Voice Match Confirmation
5.6 Impact of Drivers and Restraints:

6. Africa Contactless Payments Market Analysis

6.1 Africa Contactless Payments Market Revenue (US$ Million), 2021-2031
6.2 Africa Contactless Payments Market Forecast and Analysis

7. Africa Contactless Payments Market Analysis - by Component

7.1 Hardware
- 7.1.1 Overview
- 7.1.2 Hardware: Africa Contactless Payments Market - Revenue and Forecast to 2031 (US$ Million)
7.2 Software
- 7.2.1 Overview
- 7.2.2 Software: Africa Contactless Payments Market - Revenue and Forecast to 2031 (US$ Million)
7.3 Services
- 7.3.1 Overview
- 7.3.2 Services: Africa Contactless Payments Market - Revenue and Forecast to 2031 (US$ Million)

8. Africa Contactless Payments Market Analysis - by Payment Mode

8.1 Smartphones
- 8.1.1 Overview
- 8.1.2 Smartphones: Africa Contactless Payments Market - Revenue and Forecast to 2031 (US$ Million)
8.2 Smart Cards
- 8.2.1 Overview
- 8.2.2 Smart Cards: Africa Contactless Payments Market - Revenue and Forecast to 2031 (US$ Million)
8.3 POS Terminals
- 8.3.1 Overview
- 8.3.2 POS Terminals: Africa Contactless Payments Market - Revenue and Forecast to 2031 (US$ Million)
8.4 Others
- 8.4.1 Overview
- 8.4.2 Others: Africa Contactless Payments Market - Revenue and Forecast to 2031 (US$ Million)

9. Africa Contactless Payments Market Analysis - by Industry Verticals

9.1 Retail
- 9.1.1 Overview
- 9.1.2 Retail: Africa Contactless Payments Market - Revenue and Forecast to 2031 (US$ Million)
9.2 Transportation and Logistics
- 9.2.1 Overview
- 9.2.2 Transportation and Logistics: Africa Contactless Payments Market - Revenue and Forecast to 2031 (US$ Million)
9.3 Hospitality
- 9.3.1 Overview
- 9.3.2 Hospitality: Africa Contactless Payments Market - Revenue and Forecast to 2031 (US$ Million)
9.4 Healthcare
- 9.4.1 Overview
- 9.4.2 Healthcare: Africa Contactless Payments Market - Revenue and Forecast to 2031 (US$ Million)
9.5 Media and Entertainment
- 9.5.1 Overview
- 9.5.2 Media and Entertainment: Africa Contactless Payments Market - Revenue and Forecast to 2031 (US$ Million)
9.6 Others
- 9.6.1 Overview
- 9.6.2 Others: Africa Contactless Payments Market - Revenue and Forecast to 2031 (US$ Million)

10. Africa Contactless Payments Market - Country Analysis

10.1 Africa
- 10.1.1 Africa Contactless Payments Market Breakdown by Countries
- 10.1.2 Africa Contactless Payments Market Revenue and Forecast and Analysis - by Country
  - 10.1.2.1 Africa Contactless Payments Market Revenue and Forecast and Analysis - by Country
  - 10.1.2.2 Nigeria: Africa Contactless Payments Market - Revenue and Forecast to 2031 (US$ Million)
    - 10.1.2.2.1 Nigeria: Africa Contactless Payments Market Breakdown by Component
    - 10.1.2.2.2 Nigeria: Africa Contactless Payments Market Breakdown by Payment Mode
    - 10.1.2.2.3 Nigeria: Africa Contactless Payments Market Breakdown by Industry Verticals
  - 10.1.2.3 South Africa: Africa Contactless Payments Market - Revenue and Forecast to 2031 (US$ Million)
    - 10.1.2.3.1 South Africa: Africa Contactless Payments Market Breakdown by Component
    - 10.1.2.3.2 South Africa: Africa Contactless Payments Market Breakdown by Payment Mode
    - 10.1.2.3.3 South Africa: Africa Contactless Payments Market Breakdown by Industry Verticals
  - 10.1.2.4 Egypt: Africa Contactless Payments Market - Revenue and Forecast to 2031 (US$ Million)
    - 10.1.2.4.1 Egypt: Africa Contactless Payments Market Breakdown by Component
    - 10.1.2.4.2 Egypt: Africa Contactless Payments Market Breakdown by Payment Mode
    - 10.1.2.4.3 Egypt: Africa Contactless Payments Market Breakdown by Industry Verticals
  - 10.1.2.5 Ethiopia: Africa Contactless Payments Market - Revenue and Forecast to 2031 (US$ Million)
    - 10.1.2.5.1 Ethiopia: Africa Contactless Payments Market Breakdown by Component
    - 10.1.2.5.2 Ethiopia: Africa Contactless Payments Market Breakdown by Payment Mode
    - 10.1.2.5.3 Ethiopia: Africa Contactless Payments Market Breakdown by Industry Verticals
  - 10.1.2.6 Rest of Africa: Africa Contactless Payments Market - Revenue and Forecast to 2031 (US$ Million)
    - 10.1.2.6.1 Rest of Africa: Africa Contactless Payments Market Breakdown by Component
    - 10.1.2.6.2 Rest of Africa: Africa Contactless Payments Market Breakdown by Payment Mode
    - 10.1.2.6.3 Rest of Africa: Africa Contactless Payments Market Breakdown by Industry Verticals

11. Competitive Landscape

11.1 Heat Map Analysis by Key Players
11.2 Company Positioning & Concentration

12. Industry Landscape

12.1 Overview
12.2 Market Initiative
12.3 Product Development

13. Company Profiles

13.1 Nedbank Group Ltd
- 13.1.1 Key Facts
- 13.1.2 Business Description
- 13.1.3 Products and Services
- 13.1.4 Financial Overview
- 13.1.5 SWOT Analysis
- 13.1.6 Key Developments
13.2 Econet Wireless (Private) Limited
- 13.2.1 Key Facts
- 13.2.2 Business Description
- 13.2.3 Products and Services
- 13.2.4 Financial Overview
- 13.2.5 SWOT Analysis
- 13.2.6 Key Developments
13.3 IBA Group a.s.
- 13.3.1 Key Facts
- 13.3.2 Business Description
- 13.3.3 Products and Services
- 13.3.4 Financial Overview
- 13.3.5 SWOT Analysis
- 13.3.6 Key Developments
13.4 Sudo Africa, Inc.
- 13.4.1 Key Facts
- 13.4.2 Business Description
- 13.4.3 Products and Services
- 13.4.4 Financial Overview
- 13.4.5 SWOT Analysis
- 13.4.6 Key Developments
13.5 Thales SA
- 13.5.1 Key Facts
- 13.5.2 Business Description
- 13.5.3 Products and Services
- 13.5.4 Financial Overview
- 13.5.5 SWOT Analysis
- 13.5.6 Key Developments
13.6 Ingenico Group SA
- 13.6.1 Key Facts
- 13.6.2 Business Description
- 13.6.3 Products and Services
- 13.6.4 Financial Overview
- 13.6.5 SWOT Analysis
- 13.6.6 Key Developments
13.7 Giesecke+Devrient GmbH
- 13.7.1 Key Facts
- 13.7.2 Business Description
- 13.7.3 Products and Services
- 13.7.4 Financial Overview
- 13.7.5 SWOT Analysis
- 13.7.6 Key Developments
13.8 IDEMIA France SAS
- 13.8.1 Key Facts
- 13.8.2 Business Description
- 13.8.3 Products and Services
- 13.8.4 Financial Overview
- 13.8.5 SWOT Analysis
- 13.8.6 Key Developments
13.9 Visa Inc
- 13.9.1 Key Facts
- 13.9.2 Business Description
- 13.9.3 Products and Services
- 13.9.4 Financial Overview
- 13.9.5 SWOT Analysis
- 13.9.6 Key Developments
13.10 Mastercard Inc
- 13.10.1 Key Facts
- 13.10.2 Business Description
- 13.10.3 Products and Services
- 13.10.4 Financial Overview
- 13.10.5 SWOT Analysis
- 13.10.6 Key Developments

14. Appendix

14.1 Word Index
14.2 About the Insight Partners