The total number of MasterCard and Maestro processed transactions surpassed the one billion mark in 2015, a surge of 150% from 2014, MasterCard reported.
The value of transactions conducted using a contactless card or device increased by 183% year on year.
The data also revealed that the number of cards, mobile phones or other devices used to make contactless transaction soared by 121%.
The count of merchant locations accepting contactless payments also registered a surge of 72% year-on-year.
Over 10 countries in Europe have more than five million contactless cards or devices in circulation and an average of 13% of in-store transactions were contactless in the fourth quarter of 2015, MasterCard said.
MasterCard head of contactless payments in Europe Chris Kangas said: "New research has revealed that in Europe, about 48% of daily purchases are below EUR25, and therefore typically within the contactless tap & go limit (above EUR25 it is possible in most countries to tap and authenticate with PIN code).
"In the Netherlands and UK, this figure is even higher at 55% and 59% respectively. However, with so many transactions falling within the contactless tap & go band, and consumers proving their openness to using this technology, merchants are in the ideal position to take action and reap the benefits."