The value of contactless payment transactions is expected to reach $10trn by 2027, up from $4.6trn in 2022, according to data from Juniper Research.
It anticipates the investment into the underlying contactless payments ecosystem, such as contactless-enabled POS terminals and device-level support, will drive the value growth.
This finding comes in Juniper’s new report, ‘Contactless Payments: Key Opportunities, Emerging Trends & Market Forecasts 2022-2027.’
Its research predicts that the push towards cashless societies will bolster growth.
Mobile and wearable contactless payments are expected to grow by 221% between 2022 and 2027. This growth is a result of the convenience mobile and wearable payments offer consumers, eliminating the need to carry and produce a contactless card; easing the burden of transitioning away from cash.
In contrast, contactless card payments are only expected to grow by 119%.
Another fuel of growth is the rising number of POS terminals capable of accepting contactless payments. The report urges POS vendors to prioritise convenience when designing NFC solutions for the market, which can cater to the rising number of devices with NFC support.
Finally, the report anticipates that contactless ticketing spend will grow by over 440% between 2022 and 2027. NFC ticketing has recovered strongly following the easing of the pandemic-related restrictions and is believed to rapidly grow in the coming years.
This growth will be accelerated by the rapid deployment of NFC ticketing solutions across public transport networks with the aim of reducing payment friction for customers. The report urges vendors to foster adoption of their NFC ticketing solutions, targeting the public transport sector.
Another report from Juniper Research claimed that the value from prepaid cards will exceed $4.1trn globally in 2026, up from $2.3trn in 2021. Juniper said that by 2026, prepaid card transaction values will be just over 50% higher than that forecast for contactless payment transactions.
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