Those signs at merchants saying “No ApplePay” at points of sale are going to quickly become much rarer in the near-term future, says a new report.
So-called “contactless payments” with mobile devices such as phones being used rather than debit or credit cards for purchases will soar to 53 percent of global transactions by 2022, says research firm Juniper in a new report.
Currently the percentage is around 15.
The percentage might already be higher were U.S. credit card and other companies requiring a faster transaction to such technology, Juniper adds.
Only 2 percent of transactions are contactless currently.
“While US card issuers haven’t yet made contactless a priority, the extremely positive response across Europe, both from merchants and consumers, suggests the US would see very rapid migration at POS if and when contactless cards become mainstream,” says Dr. Windsor Holden, the author of the report.
Juniper notes that a benefit of contactless payments is reduction in CP (card present) fraud.
Helping drive the transition is consumer dissatisfaction with the slower speed of chip card transactions.
In some markets where adoption is already much higher of the emerging technology, Juniper notes that Visa and Mastercard are requiring that all point-of-sale terminals ”must be contactless-enabled by 2020.”
Helping drive the adoption as well are small-scale merchants.
The report notes that “smaller merchants would increasingly embrace mPOS (mobile Point of Sale) accessories, which facilitate payments via a connection to a mobile device, as competition in the space intensified.”
Next to go may be cash.
“The growth in this market would in turn accelerate the transition from cash to card payments, particularly for lower-value transactions,” the report says.
Read more at Juniper’s website.