New data forecasts that global contactless payment transaction values will reach nearly $6 trillion in 2024, up from $2 trillion in 2020. The data found that this increase will be driven by significant growth in OEM Pay and contactless card transaction values, especially in the US.
The new research identified the rollout of contactless cards in the US and improvements in China’s contactless POS infrastructure as key drivers of this increase, as well as strong growth from Apple Pay. However, the research found that 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.
The research anticipates that contactless cards will experience significant growth in the US, with transaction values surpassing $1.5 trillion in 2024, rising from $178 billion in 2020. The research found that growth will be fuelled by the promotion of contactless cards by major US banks, reductions in the costs associated with issuing contactless cards in the US and their increasing use in the ticketing space.
The research recommends that US retailers and technology providers urgently prioritise improving contactless infrastructure to capitalise on this growing trend.
Apple Pay Lead OEM Battle
The research found that Apple Pay will account for a 52% share of OEM Pay transaction values, up from 43% in 2020. The expansion of Apple Pay’s user base in key regions, including Far East & China and Europe, will drive growth, as well as the extension of Apple’s reach outside OEM Pay through its Apple Card initiative.
“Apple is now leading the space, owing to its unified ecosystem. Competitors, including Google and Samsung, must continue to expand the reach of their services in order to make strides in the market,” comments Susannah Hampton ,Research author.
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