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Contactless transactions to grow by 92% in two years

Contactless transactions to grow by 92% in two years

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A report from analysts Juniper Research claims that has found that transaction volumes for mobile payments will grow from US$26bn in 2021 to US$49bn in 2023; a growth of 92% that will significantly exceed that expected from contactless card volumes. The report identifies enhanced security and increasing cross-channel payment capabilities of mobile contactless payments as key drivers of growth.

The report, entitled Contactless Payments: Trends, Opportunities and Market Forecasts 2021-2026, recommends that mobile contactless payment wallets fully leverage opportunities for value-added services, such as loyalty schemes and personal financial management, to differentiate digital wallet services in this competitive market. The research also found that low trust amongst consumers is a key hurdle faced by digital wallets and urges wallet vendors to increase support of biometric authentication in their services to allay the fears of those hesitant about adopting the technology. It found that the ability of mobile payment ‘tokenisation’ to reduce the scope of payment security requirements means that the tokenisation of mobile payments will become ubiquitous. Juniper anticipates that by 2023, 99% of all contactless payment transactions by volume will be tokenised.