Contactless payments to skyrocket
The adoption of contactless payments are on the rise, but mobile payments aren’t the top option.
Contactless payments will exceed the $1 trillion mark for the first time in 2018, and contactless card payments will dominate transactions, according to “Contactless Payments: Payment Cards, OEM & Mobile Wallets 2018-2023,” a study from Juniper Research.
According to data, payment cards and mobile wallets will drive in-store contactless payments, a segment that is primed to reach $2 trillion by 2020. This represents 15% of the total point-of-sale transactions.
However, contactless card payments will lead the charge. This adoption will be led by users in Europe, as well as Far East and China. The strongest contactless card payment adoption will be across the Far East, China and rest of Asia Pacific, which together account for nearly 55% of global contactless card transaction values.
Mobile contactless payments are also on the rise, and options will be driven by original equipment manufacturers (OEM). OEM wallets, such Apple Pay, Samsung Pay, Google Pay, will reach 450 million users by 2020. Apple Pay will account for one in two OEM digital wallet users globally.
Further, OEM pay wallets will enable over $300 billion in transactions by 2020, representing 15% of the total contactless in-store transactions, the study reported.
“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,” said Nitin Bhas, head of research, Juniper Research.
It's the natural direction. It marks the confluence of truly expeditious checkout (nobody likes to wait in line behind the one person pulling out crumpled bills out of a change purse, one by one), and the ubiquity of the smartphone, through which the payments will be made. Goodbye wallet!