Contactless payments to hit $1 trillion by 2019
Written by Chris Lemmon
The global value of contactless transactions made via payment cards, mobile and wearables, will reach $1.3 trillion by 2019 – more than doubling from an estimated $590 billion in 2017, Juniper Research has predicted.
According to Juniper’s Contactless Payments: NFC Handsets, Wearables & Payment Cards 2017-2021 report, contactless card levels will continue to dominate transaction values, accounting for 80 per cent of total contactless transactions in 2019. The research also forecasts that contactless transactions via debit/credit cards will exceed $2 trillion globally by 2021.
Juniper found that in 2016, while cards accounted for well over 90 per cent of transactions by value in many European markets (for example, rising to 99 per cent in Spain), in the US the position was reversed. Mobile wallets accounted for 90 per cent of the total contactless transactions in the US.
The report also noted the growing use of contactless technology in the charity sector, citing Visa’s trials with charity donation boxes fitted with contactless readers. Juniper predicts that the growth of contactless charity donations will grow exponentially over the next few years, alongside the mobile contactless market.
Research author, Nitin Bhas, commented: “Purely from a payments and convenience perspective, it will be difficult for mobile wallet providers to gain existing market share from contactless cards. It is therefore incumbent upon them to deliver innovative services through which the mobile wallet will become the default payment mechanism.”