News

Major 'Pays' expected to attract 500M users by 2021

April 14, 2017

New data from fintech analysts at Juniper Research projects that the number of OEM-Pay contactless users — including Apple Pay, Samsung Pay, and Android Pay — will exceed 100 million for the first time during the first half of the year, and will surpass 150 million by year-end.

According to the Juniper report, Contactless Payments: NFC Handsets, Wearables & Payment Cards 2017–2021, the combined market share of Apple, Samsung, and Google as a portion of all mobile contactless users increased from 20 percent in 2015 to 41 percent in 2016.

Juniper expects this number to rise to 56 percent by 2021, as the trio's combined user base exceeds 500 million.

The research found that the pays are poised to establish themselves as the primary contactless mechanisms of choice in the U.S., but still face the challenge of ensuring that the infrastructure is in place for consumers to make in-store payments.

"We believe that as contactless usage gains traction and consumers [and] merchants recognize 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," said Nitin Bhas, author of the research.

According to Apple, the proportion of U.S. retailers supporting Apple Pay rose from 4 percent in 2014 to 35 percent in late 2016.

The research revealed that 2015 and 2016 were watershed years for the rollout of host card emulation technology.

Juniper estimates that at least 194 banks had introduced such services by the end of 2016, and expects that PayPal will rapidly deploy a portfolio of contactless payment and loyalty solutions that will allow it to compete effectively for market share.

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