The contactless payment market is gaining momentum
Juniper Research experts assessed the contactless payment market and its potential. This segment is projected to nearly double by 2027. Now its volume is $4.6 billion, but in five years it may reach more than $10 billion.
Analysts expect the greatest growth in the sector of mobile and wearable payments – here the increase will be about 221%. This segment implies the use of fitness trackers and smartwatches for shopping. In addition, an increase of 119% is expected in the card payments sector.
Experts predict that by 2027 the world volume of contactless transactions to purchase tickets will increase by 440%. The main growth driver in this sector will be the increasing popularity of OEM pay services, which include Apple Pay and Google Pay.
The increase in the popularity of contactless payments is directly related to the growing demand for mobile payments. It is expected that in 5 years the average cost of payment in Apple Pay service will be about $28, and in Google Pay – $30.
As for the leader of the market of mobile transactions through NFC, it will be the United States. In the current year, the number of payments here is estimated at 4.4 billion transactions, and by 2027 this figure will reach 8.3 billion.
The development of the contactless payment segment contributes to the intensive investment in its ecosystem. The number of terminals and outlets in the world is increasing, which has a huge impact on the popularization of this method of payment. In addition, under the influence of the pandemic, people tend to minimize the use of cash, and such trends are supported by national governments.
Juniper Research also notes that over the next 5 years, sales within the Contactless payments solution will grow significantly. The key growth factor here is the increasing emergence of NFC services, including public transport. Thus, new opportunities for passengers to pay the fare are opening up.
The real-time payments sector is growing in popularity. According to analysts’ estimates, by the end of this year, about 75% of the world’s population will use this service. If in 2014 only 17 states could provide effective solutions for such payments, now the infrastructure is successfully functioning in more than 70% of the countries. The RTP system has proven to be an excellent and secure option for making payments. It is ahead of Bacs Direct Credit and Payments solutions in terms of popularity. More and more users prefer instant methods for transactions and choose those businesses that provide this option.
