Web: Apple will lead 1 in 3 store payments to be contactless by 2020

July 2018 by: From The Web

Contactless payments — secure wireless transactions aided by NFC — are gaining on magnetic swipe and chipped cards at retail establishments, according to the financial technology analysts at Juniper Research, and mobile devices can be thanked for the unexpectedly speedy transition. Juniper estimated today that “OEM Pay wallets” will account for one in three in-store payments by 2020, led by Apple’s platform Apple Pay.

Though card-based transactions are expected to keep dominating the market over the next two years, contactless payments have surged in popularity: They are expected to exceed the $1 trillion mark for the first time this year, one year ahead of Juniper’s prior forecasts, and reach $2 trillion in stores by 2020. That represents only 15 percent of total point-of-sale transactions across the world, but is up from basically nothing less than five years ago.

The key driver for the growth is the digital “Pay” wallet concept developed by smartphone makers. Apple Pay, Samsung Pay, and Google Pay are leaders worldwide, while Huawei Pay and Fitbit Pay have launched in several markets, and Xiaomi and Garmin also offering limited solutions. By 2020, Juniper expects that there will be over 450 million people using these digital wallets, and Apple’s users will constitute half of them. Growth is currently strongest throughout Europe and the Asia-Pacific region, including China, where cardless transactions are really taking off.


Continue Reading: Venturebeat