The big picture: For many, contactless payments - whether by payment card or mobile wallet - have replaced cash as their preferred payment method due to convenience and security. According to Juniper Research, the movement is only going to pick up momentum over the coming years.
Contactless payments are expected to exceed the $1 trillion mark for the first time this year according to a recent forecast from Juniper Research. That’s one year earlier than previously anticipated by the digital market researcher.
In-store contactless payments, driven by payment cards and mobile wallets, will eclipse $2 trillion by 2020, the firm estimates, representing 15 percent of all point of sale transactions. Contactless transactions will be dominated by card payments but that’s not to say that mobile contactless payments aren’t making headway.
Juniper notes that Apple Pay, Samsung Pay and Google Pay will drive the market forward. Combined, there are expected to be 450 million OEM Pay wallet users by 2020 with Apple accounting for one in two of them.
As a result, Juniper forecasts that OEM Pay wallet usage will result in over $300 billion in transactions by 2020, or roughly 15 percent of the total contactless in-store transactions.
Juniper’s forecasts also include newcomers like Fitbit Pay and Huawei Pay although as research author Nitin Bhas explains, they believe growth over the next five years will continue to be dominated by offerings from major OEM players.
Contactless ticketing is also on the rise, especially in North America and Europe. Juniper forecasts nearly 10 billion mobile contactless ticketing transactions by 2022, a figure that includes both tickets purchased or validated.
Have you made the leap to contactless mobile payments or are you still using a traditional bank card / cash?