Contactless payments ramp up in 2017
Telecoms.com, Banking Technology‘s sister publication, reports.
It’s a market which is set to boom over the next couple of years, as the connected era takes a strangle hold on society, and greater levels of trust are placed in such devices. Juniper Research believes the number of mobile contactless payment (NFC handsets, wearables and payment cards) users will reach 300 million by the end of 2017.
“We believe that as contactless usage gains traction and consumers/merchants recognise the speed and convenience it offers, then, as in European markets, there will be a further and significant increase in availability at the point-of-sale,” says Nitin Bhas, head of research at Juniper Research.
For Mark Zuckerberg, the forecasts would certainly be welcomed, as the internet tyrant continues to search for any means to recoup the $19 billion shelled out for WhatsApp, but perhaps less encouraging is the dominance of Apple, Samsung, and Android in the space. The trio accounted for 41% in 2016, as a proportion of total mobile contactless payment users, a number which is expected to increase 56% by 2021, partly owing to a combined global user base of more than 500 million.
While the concept of internet banking has taken firm hold of society, contactless payments across the world will be primarily driven by the speed at which merchants can offer the facilities to do so. The contactless payment trend has certainly taken off in Europe, though uptake is slower elsewhere. That said, the desire is certainly present. Mastercard is one of the main driving forces behind the evolution and has committed to making all POS terminals in Europe to be contactless capable by 2020.