Driven by cards and mobile wallets, contactless payments will reach an estimated $2tn by 2020, according to new research from fintech analysts, Juniper Research
The report noted that contactless payments in 2020 will represent 15% of the total point-of-sale (POS) transactions globally.
Juniper initially predicted that contactless payments would exceed $1tn in 2019, however, the report highlighted that contactless payments will surge past that figure this year.
Cards drive contactless payments growth
The research also found that contactless payments, in the near future will continue to be largely driven by card payments. This is due to significant and growing adoption rates in Europe as well as across Asia.
Card payment growth is the trend to watch, according to Juniper:
“Contactless card payments are the strongest across Far East & China and Rest of Asia Pacific, which together account for nearly 55% of global contactless card transaction values.”
Furthermore, by 2022, Juniper estimates that up to ten billion mobile contactless ticketing transactions will take place. North America will lead the way in this market.
Apple will represent 50% of contactless payments
According to Juniper, Apple Pay will dominate the mobile payments market. The number of consumers who tap to pay will grow to 450 million worldwide by 2020.
By this time, the research predicts that Apple Pay will have amassed the largest customer base out of all the mobile payment solutions. The analysts at Juniper estimated that in 2020, Apple will represent 50% of contactless payments.
Research author Nitin Bhas stated: “We believe that growth over the next 5 years will continue to be dominated by offerings from the major OEM players. Additionally, we now have the likes of Huawei Pay and Fitbit Pay launching in several markets; this is now included in Juniper’s contactless forecasts.”
This follows the announcement last week that eBay plans to accept Apple Pay. The rollout is scheduled to start from this year on eBay’s Marketplace platform. The move will allow customers to purchase items through Apple Pay from sellers.