New data from Juniper Research estimates that driven by payment cards and mobile wallets, in-store contactless payments will reach $2 trillion by 2020, representing 15% of the total point of sale transactions. Contactless payments will exceed the $1 trillion mark for the first time in 2018, a year earlier than previously anticipated by Juniper.
However, it found that contactless transactions will continue to be dominated by card payments, driven by strong adoption in Europe as well as 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% 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 1 in 2 OEM Pay users globally.
Research author Nitin Bhas explained: “We believe that growth over the next 5 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% of the total contactless in-store transactions.
Beyond in-store payments, the 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, ie tickets purchased or validated, by 2022, with North America dominating the sector, followed by the Far East & China.
Source: Juniper Research
MacDailyNews Take: A lot of these also-ran Apple Pay knockoffs won’t be around by 2020, but the concept is here to stay. We’re using Apple Pay (via our Apple Watches) at least 50% of the time in-store nowadays.
SEE ALSO:
eBay to accept Apple Pay – July 24, 2018
Apple debuts ‘Summertime savings with Apple Pay’ with exclusive offers thru August 1st – July 20, 2018
Apple Pay dominates with far more users than Samsung Pay, Google Pay, and other OEM pay systems combined – June 27, 2018
Apple teams with Goldman Sachs on new ‘Apple Pay’ credit card due early next year – May 10, 2018
10% of young adult Americans have used Apple Pay in-store, well ahead of rivals – February 28, 2018
Apple Pay Cash international roll out begins – February 23, 2018
Apple Pay users more than double globally, but only 16% of iPhone users have activated Apple Pay – February 22, 2018
Apple Pay now accepted in 50 percent of U.S. stores and is the world’s most accepted contactless payment system – January 31, 2018
watchOS 4.2 delivers Apple Pay Cash to Apple Watch – December 5, 2017
Apple Pay now in 20 countries, takes 90% of all contactless payments where active – October 24, 2017
Apple Pay is proliferating, and the banks are scared – October 18, 2017
Apple Pay likely to get boost from Visa and Mastercard mandating contactless payment terminals – August 21, 2017
Apple Pay usage estimated to rise sharply in United States due to frustration with slow Chip-and-PIN cards – August 21, 2017
In the UK we can now add store loyalty cards to the Apple Wallet. This makes the checkout even faster now. Personally 90% of my purchases are now made through ApplePay.
I’ve been using Apple Cash far more than I thought I would. I’ve found some Apple Pay stores also accept Apple Cash, but not many. I expect that to increase as my understanding is that there are no merchant fees involved with Apple Cash. Certainly, I haven’t seen any when I’ve accepted Apple Cash transactions.
Regrettably Apple has not been able to crack the Australian markets with Apple Pay. Australia is the country that probably uses contactless payments more than any other – cheques/checks not used. Given this state, Apple should have started Apple Pay in Australia before the US which is still using paper cheques/checks and ancient POS devices.