New data from Juniper Research forecasts that global contactless transaction values will reach nearly $6 trillion (€5.5 trillion) in 2024, up from $2 trillion (€1.8 trillion) in 2020. It found that this increase will be driven by significant growth in OEM Pay and contactless card transaction values, especially in the US.
The new research, Contactless Payments: Market Status, Vendor Analysis & Market Forecasts 2020-2024, identified the rollout of contactless cards in the US and improvements in China’s contactless POS infrastructure as key drivers of this increase, as well as strong growth from Apple Pay. However, the research found that OEM Pay, payment options from smartphone manufacturers, will account for higher value payments over the forecast period, due to restrictive payment limits for contactless cards.
Contactless card usage in the US to accelerate
Juniper Research anticipates that contactless cards will experience significant growth in the US, with transaction values surpassing $1.5 trillion (€1.3 trillion) in 2024, rising from $178 billion (€163 billion) in 2020. The research found that growth will be fuelled by the promotion of contactless cards by major US banks, reductions in the costs associated with issuing contactless cards in the US and their increasing use in the ticketing space. The research recommends that US retailers and technology providers urgently prioritise improving contactless infrastructure to capitalise on this growing trend.
Apple Pay still leading OEM Pay battle
The research found that Apple Pay will account for a 52% share of OEM Pay transaction values, up from 43% in 2020. The expansion of Apple Pay’s user base in key regions, including Far East & China and Europe, will drive growth, as well as the extension of Apple’s reach outside OEM Pay through its Apple Card initiative.
Research author Susannah Hampton explained, “Apple is now leading the space, owing to its unified ecosystem. Competitors, including Google and Samsung, must continue to expand the reach of their services in order to make strides in the market”.
Juniper Research provides research and analytical services to the global hi-tech communications sector; providing consultancy, analyst reports and industry commentary.