The forecast for the growth of the payments market — representing 15% of global total point-of-sale transactions — comes from analyst firm Juniper Research which predicts that contactless payments will exceed the US$1 trillion mark for the first time in 2018, a year earlier than it previously anticipated.
And contactless transactions will continue to be dominated by card payments, according to Juniper, which says they will be driven by strong adoption in Europe as well as the Far East and China.
“Indeed, contactless card payments are the strongest across Far East and China and the rest of Asia Pacific, which together account for nearly 55% of global contactless card transaction values,” Juniper says in its market report.
Combined, Juniper says these OEM pay wallets users will reach 450 million by 2020, with Apple accounting for 1 in 2 OEM pay users globally.
“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,” says research author Nitin Bhas.
Consequently, Juniper forecasts that OEM pay wallets will enable over US$300 billion in transactions by 2020, representing 15% of the total contactless in-store transactions.
Beyond in-store payments, the Juniper research forecasts 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 — i.e. tickets purchased or validated, by 2022 — with North America dominating the sector, followed by the Far East and China.