Contactless

• [New] Contactless payments will see a compound annual growth rate of 20% through 2028 and, by 2025, it is projected that 18.7 billion contactless fare payments will be made annually.
• [New] Of the one billion transactions, 400 million took place in the UK, and further growth can be expected given the announcement that the UK contactless limit will increase to £100 later in 2021.
• [New] The Moscow metro will implement FacePay, a facial recognition technology that facilitates contactless fare payments at all stations by the end of 2021.
• Apple Pay users could be able to make contactless payments and other transactions with merchants or transit providers without having to manually select the correct payment, rewards or transit card or other digital credential from within their mobile wallet.
• By 2025, the research firm projects, 50.1% of U.S. smartphone users 14 and older will be using their devices to make payments that they might have made in the past with cash or plastic.
• Following the announcement that the contactless payment limit in the UK will rise to £100, London-based accessories brand KNOMO London is urging shoppers to take appropriate action to protect themselves from fraud.
• The global contactless payment market was valued at USD 1.05 trillion by transaction value in 2019 and predicted to register a compound annual growth rate of around 20.01% during period 2020 to 2027.
• NFC-based payments will also increase as 34% of mobile handsets are set to use contactless payments in 2025, up from 11% in 2020.
• With consumers now becoming more comfortable with digital and contactless payment trends, we can expect to see continued innovation and acceleration in the payments industry throughout 2021.
• The increase in global transaction value will be driven by Apple Pay, Samsung Pay and Google Pay and will result in OEM Pays accounting for around 11% of all in-store proximity transactions made using contactless and QR payment methods in 2022.
• Amadeus, cloud solutions will help deliver an exceptional check-in and boarding experience at Finland's gateways and accelerate innovations like contactless payment for a more agile response to COVID-19.
• OEM Pay contactless transactions, driven by Apple Pay, Samsung Pay and Google Pay, will reach more than $1 trillion in 2022, finds Kaleido Intelligence.
• Revenue from remote payment tokenization will represent 58% of total mobile payment tokenization revenue in 2025, while revenue from the tokenization of contactless payments is accelerating rapidly.
• With merchant demand for contactless payments rising fast in the face of the Covid-19 pandemic, Verizon Communications Inc. announced in December its Verizon Business unit will begin o ering Fiserv Inc.'s Clover Flex mobile point-of-sale device to its business customers.
• Mobile contactless payments - which have higher limits and biometric security - are the fastest growing payment method at point of sale and will account for £125bn worth of sales on the UK high street by 2024.
• In 2021, Eurosmart forecasts an increased demand of payment cards close to 2%, supported by a continuous growth of contactless card issuance, whose market share is estimated to surpass 70%.
• Given the increase in demand for digital payments, contactless payments and e-commerce platforms, global fintech investment is expected to remain robust well into 2021.
• The Covid-19 pandemic has further accentuated the need for contactless services, thereby increasing the demand for connected drug delivery devices as well as providing lucrative growth opportunities in the coming years.
• 2021 will continue to see additional form factors, including unmanned ground vehicles (UGVs) to expand the need for contactless delivery and scale last mile and yard.
• While the current COVID-19 has caused a slowdown in its growth in 2020, it simultaneously brought major change in consumer preference towards non-cash tools such as contactless cards, which will in turn support card payments growth over the next few years.
• With growing online shopping trends like contactless delivery, omnichannel selling, social commerce, etc. it would be interesting to see what other new trends will emerge in 2021.
• Given the increase in demand for digital payments, contactless payments and e-commerce platforms, fintech investment is expected to remain robust well into 2021.

Last updated: 18 April 2021