Mobile adoption key as contactless payments space sees major growth
The value of contactless payment transactions will reach $10 trillion globally by 2027, from $4.6 trillion in 2022, according to Juniper Research.
Investment in the underlying contactless payments ecosystem, such as contactless enabled PoS terminals and device level support, will be the key driver here.
The push towards cashless societies will push things forward.
Mobile and wearable contactless payments are anticipated to grow by 221% between 2022 and 2027.
This is due to the convenience that they offer consumers, eliminating the need to carry and produce a contactless card; easing the burden of transitioning away from cash.
In comparison, contactless card payments are anticipated to grow by only 119% during the same period.
Juniper Research also says that the high growth of PoS terminals capable of accepting contactless payments is fuelling this growth.
It urges PoS vendors to prioritise convenience when designing NFC solutions for the market, which can cater to the growing number of devices that offer NFC payment capabilities.
Contactless ticketing spend, meanwhile, is set to grow by over 440% between 2022 and 2027.
NFC ticketing has recovered strongly following the easing of pandemic related restrictions, and is forecast to continue rising rapidly over the next five years.
This will be further accelerated by the rapid deployment of NFC ticketing solutions across public transport networks, with the aim of reducing payment friction for customers.
In turn, Juniper Research urges vendors to foster adoption of their NFC ticketing solutions; targeting the public transport sector in developed regions that are increasingly seeking out ways to improve ticketing efficiencies.
