The future of shopping transactions may look a lot like Apple Pay. In-store contactless payments are predicted to reach $2 trillion by 2020, making up one-third of total transactions, according to a Monday Juniper Research report. Contactless payments will surpass $1 trillion in 2018 for the first time, which is a year earlier than Juniper previously expected, according to the press release.
Led by Europe, as well as China and the Far East, contactless card payments dominate these transactions, according to the release. The Far East and China, along with the rest of Asia Pacific, account for the majority (55%) of global contactless card transactions, continued the release.
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OEM Pay wallets, specifically, are expected to represent 15% of total contactless in-store transactions, racking up over $300 billion in transactions by 2020, added the release.
Juniper found the most-used mobile card payment platforms to be Apple Pay, Samsung Pay, Google Pay, and other OEM Pay wallets. The OEM Pay wallet users are predicted to total 450 million by 2020, with Apple having a huge presence—accounting for one in two OEM Pay users globally, said the release.
Apple Pay usage has exploded in the past couple years, transforming the retail industry. While the discussions around digital transformation in retail are a hot topic, mobile transactions are a big contributor.
Mobile payments have forced retailers to rethink how they conduct transactions and do business, choosing to support the shift that Apple Pay is spearheading. The main point of support for Apple Pay is security, as mobile wallets eliminate the magnetic stripe on credit and debit cards that store sensitive information.
"We believe that growth over the next 5 years will continue to be dominated by offerings from the major OEM players," Juniper Research report author Nitin Bhas said in the release.
The big takeaways for tech leaders:
- In-store contactless payments are on the rise, expected to reach $2 trillion by 2020. — Juniper, 2018
- Leading the movement in contactless payments are OEM Pay wallets, specifically Apple Pay, which are affecting the retail industry. — Juniper, 2018
Macy Bayern has nothing to disclose. She does not hold investments in the technology companies she covers.
Macy Bayern is an Associate Staff Writer for TechRepublic. A recent graduate from the University of Texas at Austin's Liberal Arts Honors Program, Macy covers tech news and trends.