Market Overview

Juniper Research: Contactless Payments to Represent 1 in 3 In-Store Transactions Globally by 2020

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Representing $2 trillion in value, accounting for 15% of total POS
transaction value

New data from leading fintech analysts, Juniper
Research
, estimates that driven by
payment cards and mobile wallets, in-store contactless payments will
reach $2 trillion by 2020, representing 15% of the total point of sale
transactions. Contactless payments will exceed the $1 trillion mark for
the first time in 2018, a year earlier than previously anticipated by
Juniper.

However, it found that contactless transactions will continue to be
dominated by card payments, driven by strong adoption in Europe as well
as Far East & China. Indeed, 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.

For more contactless payment insights, download the free whitepaper: Will
Apple Continue to Dominate Contactless Payments?

Mobile Contactless Payments Driven by OEM Pay Wallets

According to the new research, Contactless
Payments: Payment Cards, OEM Pay & Mobile Wallets 2018-2023
, 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 by 2020, with Apple accounting for
1 in 2 OEM Pay users globally.

Research author Nitin Bhas explained: "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".

Consequently, Juniper forecasts that OEM Pay wallets will enable over
$300 billion in transactions by 2020, representing 15% of the total
contactless in-store transactions.

Contactless Ticketing Gains Traction

Beyond in-store payments, the research forecasts rapid growth in
contactless ticketing, especially in the European and North American
markets where mobile wallets have been deployed. Juniper forecasts
nearly 10 billion mobile contactless ticketing transactions, ie tickets
purchased or validated, by 2022, with North America dominating the
sector, followed by the Far East & China.

Juniper Research is acknowledged as the leading analyst house in the
Fintech & Payments sector, delivering pioneering research into payments,
banking and financial services for more than a decade.

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