Payment cards and mobile wallets will reach $2 trillion in two years.
Worldwide, in-store contactless payments transactions will exceed $1 trillion for the first time this year. This is according to recent data published by Juniper Research. The leading fintech analysts also estimate that, globally, in-store contactless monetary transactions will hit $2 trillion by 2020 and will represent 15 percent of the total point-of-sale transactions.
Both card payments and mobile wallets are expected to drive the growing use of these payments.
Even though both of these contactless payments will be the driving force behind the upswing in consumers using this form of payments technology around the globe, Juniper Research found that it will be specifically card payments that will dominate contactless transactions. This is due to the strong adoption of these payments throughout Europe and the Far East & China.
In fact, regarding the Far East & China as well as the rest of Asia Pacific, together, Juniper notes that these regions make up nearly 55 percent of the world’s contactless card transaction values.
Apple pay will lead the way for mobile contactless payments.
In specific regard to mobile, the new research reveals that the mobile contactless payments market will be predominantly driven by Apple Pay, which will account for 1 in 2 OEM Pay users worldwide by 2020.
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That being said, overall, OEM Pay wallets, which includes Apple Pay, Samsung Pay, Google Pay and other OEM wallets, will reach a combined total of 450 million users by 2020.
“We believe that growth over the next 5 years will continue to be dominated by offerings from the major OEM players,” said Nitin Bhas, research author of the recent Juniper report -Contactless Payments: Payment Cards, OEM Pay & Mobile Wallets 2018-2023.
“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,” Bhas added.
Furthermore, by 2020, it has also been forecasted by Juniper that OEM Pay wallets will allow for more than $300 billion in transactions. This represents 15 percent of the total contactless payments made in-store.