Contactless

• Biometrics will enable $2.5 tn worth of mobile payments by 2024, while Goode Intelligence has estimated that in 2020 over 1.1 billion people will use biometrics for mobile financial services, such as payments, accessing banking apps or customer identify verification.
• Contactless payments will continue to grow at 100+ percent in Europe - expect more than 50 percent of transactions being contactless in 2019.
• Contactless payments have become so popular among UK consumers that they accounted for half of all debit card transactions in July 2019.
• By 2024, debit cards are forecast to account for half of all payments in the UK, as the use of cash continues to decline.
• UK finance represent a cluster of financial institutions and banks and it has predicted that around 36% of total payments will be made through NFC powered contactless cards by the year 2027.
• The mobile payments market is growing rapidly, having already reached a value of $1.1 trillion as of last year and one billion people are expected to use a mobile payment app worldwide by the close of 2020.
• UK Finance has predicted that fewer than one in 10 transactions will be in cash within a decade as contactless and mobile apps transform how Britons make payments.
• Platform screening door barriers used in the platform level will increase safety and increase efficiency.
• As consumers make use of touchless payment options with increasing frequency, the value of contactless transactions in the U.S. is expected to increase from $178 billion in 2020 to $1.5 trillion in 2024.
• Contactless mobile payments will control less than 2% of U.S. retail sales in 2019, owing to lack of a measurably better value proposition for mobile payments vs. cards, as well as other factors.
• GlobalData forecasts a compound annual growth rate of 19.4% in transaction value up to 2023 and a growth of 26.3% in 2020, as consumers look for contactless payment methods.
• Financial institutions are expected to offer more contactless cards in 2020 and some are also unveiling services intended to help consumers easily add cards to their digital wallets.
• The emergence of contactless technology and e-commerce growth in Peru are expected to further support the payment card market.
• Later this year, customers will be able to view the journey history for their contactless card and apply for refunds using the free TfL app.
• In the U.S., 73 percent of OEM-Pay users (Apple Pay, Samsung Pay, Android Pay etc) expect to increase their usage, but only 39 percent of non-users expect to start using mobile contactless payments.
• Consumers across the globe now expect their cards to work across all popular platforms, whether it is for e-commerce, mobile wallets like Apple Pay, Google Pay, Samsung Pay or contactless payments.
• The US market for contactless cards is expected to ramp quickly, with incremental transactions reaching ~4.6 b by 2022 E  Contactless payment methods are largely a new development (~5% penetration as of 2018) and should increase rapidly as issuers continue converting to contactless capabilities.
• 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.
• Contactless payments will triple to $6 trillion worldwide by 2024, from about $2 trillion this year, as OEM mobile wallet transactions increase and banks expand the use of contactless cards.
• Contactless transactions using mobile are now the fastest-growing payments segment, and are predicted to grow at 80 percent per year in the US to the end of 2020.
• Outside of the U.S., contactless payments already account for two out of five face-to-face Visa transactions, and Visa predicts they will expand to the U.S. within the next three to five years.
• Momentum is growing: tens of millions of contactless cards are expected to be issued this year and 78 of the top 100 merchants accept contactless payments today.

Last updated: 17 January 2021