Contactless

[New] GlobalData forecasts a compound annual growth rate of 19.4% in transaction value up to 2023 and a growth of 26.3% in 2020, as consumers look for contactless payment methods.
Financial institutions are expected to offer more contactless cards in 2020 and some are also unveiling services intended to help consumers easily add cards to their digital wallets.
The emergence of contactless technology and e-commerce growth in Peru are expected to further support the payment card market.
Later this year, customers will be able to view the journey history for their contactless card and apply for refunds using the free TfL app.
In the U.S., 73 percent of OEM-Pay users (Apple Pay, Samsung Pay, Android Pay etc) expect to increase their usage, but only 39 percent of non-users expect to start using mobile contactless payments.
Consumers across the globe now expect their cards to work across all popular platforms, whether it is for e-commerce, mobile wallets like Apple Pay, Google Pay, Samsung Pay or contactless payments.
The US market for contactless cards is expected to ramp quickly, with incremental transactions reaching ~4.6 b by 2022 E  Contactless payment methods are largely a new development (~5% penetration as of 2018) and should increase rapidly as issuers continue converting to contactless capabilities.
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.
Contactless payments will triple to $6 trillion worldwide by 2024, from about $2 trillion this year, as OEM mobile wallet transactions increase and banks expand the use of contactless cards.
Contactless transactions using mobile are now the fastest-growing payments segment, and are predicted to grow at 80 percent per year in the US to the end of 2020.
Outside of the U.S., contactless payments already account for two out of five face-to-face Visa transactions, and Visa predicts they will expand to the U.S. within the next three to five years.
Momentum is growing: tens of millions of contactless cards are expected to be issued this year and 78 of the top 100 merchants accept contactless payments today.
International research estimates that 440 million individuals will use contactless mobile payment services across the world this year, feeding a market that will be worth €120 million by 2022.
Visa expects there will be more than 100 million Visa contactless cards from all U.S. issuers within a year.
JPMorgan Chase & Co. will begin issuing contactless credit cards next year, adding the contactless EMV function to its debit cards later in the year.
Visa projects that there will be more than 100 million contactless Visa cards issued in the U.S. by the end of 2019, and Apple Pay already is available at 65% of retail locations in the U.S.
Contactless cards are expected to account for 80 percent of total global contactless transactions in 2019.
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 in number by 2020, with Apple accounting for 1 in 2 OEM Pay users globally.
Contactless payments will exceed the $1 trillion mark for the first time in 2018: In 2020, in-store contactless payments will reach $2 trillion.
Contactless payments will exceed the $1 trillion mark for the first time ever in 2018, and by 2020, they will top $2 trillion in store, making up 15 percent of all point-of-sale transactions.
Visa estimates that contactless payments will displace $275 billion in cash payments in the U.S. during the next five years.
The number of people using mobile contactless payment such as Apple Pay or Google Pay will continue to grow to more than 760 million by 2020.

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Last updated: 02 August 2020