Global contactless transaction values will reach nearly $6 trillion in 2024, up from $2 trillion in 2020, according to new data from Juniper Research. 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.
But 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.
Juniper Research anticipates that contactless cards will experience significant growth in the US, with transaction values surpassing $1.5 trillion in 2024, rising from $178 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.
The research found that Apple Pay will account for a 52 per cent share of OEM Pay transaction values, up from 43 per cent 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 said, “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.”