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Mobile contactless payment users to top 750M by 2020

June 29, 2018

The global number of mobile contactless users will exceed 760 million by 2020, up from an estimated 440 million in 2018, according to a new study from Juniper Research.

The research forecasts that OEM pay services, including Apple Pay, Samsung Pay and Google Pay, will reach 450 million by 2020, with Apple accounting for 1 in 2 OEM pay users globally.

The combined market share of Apple, Samsung and Google will reach 60 percent of global mobile contactless users by 2023, up from an estimated 50 percent in 2018, according to the report. Other OEM pay users such as Huawei Pay, Xiaomi Pay, Fitbit Pay and Garmin Pay, will exceed 20 million by 2020.

Banks are also active in the space: More than 200 FIs had HCE-wallet services in 2017, and financial institutions are expected to drive future mobile wallet growth in many markets.

Juniper said that while contactless payments have risen rapidly, this has not necessarily translated to rapid growth for mobile contactless payments. In many established markets, contactless cards are most likely to influence increased current and future use by consumers, and OEM pay options may struggle to gain traction among existing users in such markets.

Across all types of payment cards, mobile and wearable devices, total transaction value will reach $1 trillion in 2018, a year earlier than anticipated by Juniper Research.

"With contactless payments becoming the norm in many global markets, the attendant payment infrastructure is also becoming well established," said Juniper research author Nitin Bhas. "Indeed, in markets such as Europe, contactless payments are becoming the preferred method of in-store payments about the results."