Thursday, 13 February 2020 02:09

Contactless payment transactions to reach US$6 trillion by 2024 Featured

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Global contactless payment transactions values will reach nearly US$6 trillion in 2024, up from $2 trillion in 2020, according to a new report which found that 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, 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”.

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Peter Dinham

Peter Dinham is a co-founder of iTWire and a 35-year veteran journalist and corporate communications consultant. He has worked as a journalist in all forms of media – newspapers/magazines, radio, television, press agency and now, online – including with the Canberra Times, The Examiner (Tasmania), the ABC and AAP-Reuters. As a freelance journalist he also had articles published in Australian and overseas magazines. He worked in the corporate communications/public relations sector, in-house with an airline, and as a senior executive in Australia of the world’s largest communications consultancy, Burson-Marsteller. He also ran his own communications consultancy and was a co-founder in Australia of the global photographic agency, the Image Bank (now Getty Images).

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