Skip to main content

Worldwide Contactless Payments will Exceed $1 Trillion

There's a huge upside opportunity for digital payment innovation in America. As of December 2017, Juniper Research estimates that only 9 percent of the total payment cards in circulation within the U.S. market was contactless-enabled -- this translates into just over 100 million cards.

While this is a significant installed base -- around 13 percent of total chip cards issued in the U.S. market -- Juniper estimates that only 5.5 percent of the cards were actually used to make contactless offline point-of-sale purchases in 2017.

This translates into about 6 million contactless cards used for payments. That's relatively low in comparison with more advanced markets such as Canada (60 million) and the UK (108 million).

Contactless Payment Market Development

Juniper Research forecasts that driven by payment cards and mobile wallets, in-store contactless payments will reach $2 trillion by 2020 -- that represents 15 percent of the total point of sale transactions.

Furthermore, contactless payments will exceed the $1 trillion mark for the first time in 2018, a year earlier than previously anticipated by Juniper analysts.

However, contactless transactions will continue to be dominated by card payments, driven by strong adoption in Europe as well as the 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 percent of global contactless card transaction values.


According to the Juniper assessment, 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.

"We believe that growth over the next 5 years will continue to be dominated by offerings from the major OEM players," said Nitin Bhas, head of research at Juniper Research. "Additionally, we now have the likes of Huawei Pay and Fitbit Pay launching in several markets."

Consequently, Juniper now forecasts that OEM Pay wallets will enable over $300 billion in transactions by 2020, representing 15 percent of the total contactless in-store transactions.

Outlook for Contactless Payment Application Growth

Beyond in-store payments, the analyst forecasts rapid growth in contactless ticketing payment, 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 & China.

Popular posts from this blog

How a Digital-First CEO Leads Transformation

Some leaders reject the notion that "wait and see" is the best response to disruptive change. Savvy senior executives are already driving digital business transformation throughout their organization in an effort to gain a bold strategic advantage. According to the latest market study by International Data Corp (IDC), Digital-First CEOs plan to drive at least half of their income from digital business products, services, and experiences by 2027 -- that's ahead of the market average of 39 percent. Driven by their response to the COVID-19 pandemic, these business leaders have changed how they think about the relationship between business and technology, and how they approach the next digital transformation era -- from scaling digital technology to guiding a viable digital business. Digital Business Market Development IDC defines digital business as value creation based on technology, which entails: 1) Automated customer-facing processes and internal operations; 2) Provision

Digital Solutions for Industrial & Manufacturing Firms

Executive leaders of fast-moving consumer goods (FMCG) are seeking guidance on how to apply new business technology in their manufacturing operations. CIOs and CTOs are tasked with gaining insight into the best solutions for digital transformation. ABI Research evaluated the impact politics, regulation, the economy, supply chain, ESG, and technology are having on FMCG, pharma, producers of steel, chemicals, pulp and paper -- as well as the mining and oil & gas sectors. Digital Transformation Market Development "Our assessment found that the FMCG sector is under pressure from all sides," says Michael Larner, industrial & manufacturing research director at ABI Research . Securing raw materials is challenging considering lockdowns in China and limited grain supplies from Ukraine. Supply shocks are raising input costs, and operating costs are rising with higher energy costs coupled with the pressure to pay higher wages and work sustainably. "We all hoped that with th

Retail Transformation Gains New Momentum

Forward-thinking retailers now have a bright future. In contrast, those that failed to enhance their business model via digital transformation have struggled, declined, and their assets were eventually liquidated. The key difference between these two business outcomes is applied strategic foresight. Even as the world continues to emerge from a global pandemic, retail is growing at levels not seen in the last two decades. Retail sales grew by 7 percent in 2020 and by over 14 percent in 2021, which is in stark contrast to the 3.7 percent annual growth between 2010 and 2019. The increased demand for retail has put a strain on supply chains and retail operations worldwide. As a result, retailers and stakeholders are turning to automation solutions such as mobile robotics for operational ease. Retail Transformation Market Development According to the latest market study by ABI Research, worldwide commercial robot revenue in retail stores will have a Compounded Annual Growth Rate (CAGR) of o