The new research, Contactless Payments: Market Status, Vendor Analysis & Market Forecasts 2020-2024, from Juniper Research identified the rollout of contactless cards in the US and improvements in China’s contactless POS infrastructure as key drivers of the increase, as well as strong growth from Apple Pay.
And 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 US$1.5 trillion in 2024, rising from US$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.
According to the research Apple Pay will account for a 52% share of OEM Pay transaction values, up from 43% in 2020.
And 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”.