Driven by payment cards and mobile wallets, in-store contactless payments will reach $2 trillion by 2020 – representing 15 per cent of total point of sale transactions.

This is according to new research from Juniper, which found that contactless payments will exceed the $1 trillion mark for the first time in 2018, a year earlier than previously anticipated. The study found that growth will be driven by strong adoption in Europe as well as the Far East and China.

The mobile contactless payments market will be driven by Apple Pay, Samsung Pay, Google Pay and other Original Equipment Manufacturer (OEM) Pay wallets. Combined, these OEM Pay wallets users will reach 450 million by 2020, with Apple accounting for half OEM Pay users globally.

Research author Nitin Bhas explained: “We believe that growth over the next five years will continue to be dominated by offerings from the major OEM players. Additionally, we now have the likes of Huawei Pay and Fitbit Pay launching in several markets; this is now included in Juniper’s contactless forecasts.”

Consequently, Juniper forecasts that OEM Pay wallets will enable over $300 billion in transactions by 2020, representing 15 per cent of the total contactless in-store transactions.

Beyond in-store payments, the research forecasts rapid growth in contactless ticketing, especially in the European and North American markets where mobile wallets have been deployed. Juniper forecasts nearly 10 billion mobile contactless ticketing transactions, i.e. tickets purchased or validated, by 2022, with North America dominating the sector, followed by the Far East and China.

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