Contactless

• [New] 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.
• International research estimates that 440 million individuals will use contactless mobile payment services across the world this year, feeding a market that will be worth €120 million by 2022.
• Visa expects there will be more than 100 million Visa contactless cards from all U.S. issuers within a year.
• JPMorgan Chase & Co. will begin issuing contactless credit cards next year, adding the contactless EMV function to its debit cards later in the year.

Last updated: 29 November 2020