In-store contactless payments will reach $2 trillion by 2020, representing 15 per cent of the total point of sale transactions. The forecast is contained in a new report from Juniper Research, which argues the growth will be driven by payment cards and mobile wallets.
Contactless payments will exceed the $1 trillion mark for the first time in 2018, a year earlier than previously anticipated by Juniper.
It found that contactless transactions will continue to be dominated by card payments, driven by strong adoption in Europe as well as the Far East & China. Indeed, contactless card payments are the strongest across Far East & China and Rest of Asia Pacific, which together account for nearly 55 per cent of global contactless card transaction values.
According to the new research, Contactless Payments: Payment Cards, OEM Pay & Mobile Wallets 2018-2023, the mobile contactless payments market will be driven by Apple Pay, Samsung Pay, Google Pay and other OEM Pay wallets. Combined, these OEM Pay wallets users will reach 450 million by 2020, with Apple accounting for one in two OEM Pay users globally.
Research author Nitin Bhas said, “We believe that growth over the next five years will continue to be dominated by offerings from the major OEM players. Additionally, we now have the likes of Huawei Pay and Fitbit Pay launching in several markets; this is now included in Juniper’s contactless forecasts.”
Consequently, Juniper forecasts that OEM Pay wallets will enable over $300 billion in transactions by 2020, representing 15 per cent of the total contactless in-store transactions.
Beyond in-store payments, the research expects rapid growth in contactless ticketing, especially in the European and North American markets where mobile wallets have been deployed. Juniper forecasts nearly 10 billion mobile contactless ticketing transactions, ie tickets purchased or validated, by 2022, with North America dominating the sector, followed by the Far East & China.