The number of consumers using OEM Pays — mobile payment services delivered by handset manufacturers — such as Apple Pay, Samsung Pay and Android Pay will exceed 100m for the first time during the first half of 2017 and is expected to surpass 150m by the end of the year, Juniper Research reveals, while host card emulation (HCE) adoption is set to rise five-fold over the next four years.
The combined market share of Apple, Samsung and Google increased from 20% in 2015 to 41% in 2016, as a proportion of total NFC mobile payment users. This number is expected to rise to 56% by 2021 as the companies’ combined user base exceeds 500m, the research firm predicts.
“The research found that Apple Pay, and the alternative wallets that have followed in its wake, are set to establish themselves as the primary contactless mechanisms of choice in the US,” Juniper Research says. “However, the challenge facing Apple and its rivals is to ensure that the infrastructure is in place for consumers to make in-store payments.
“The research found that 2015/16 were watershed years for HCE in terms of commercial services rollouts. Juniper estimates that at least 194 banks had introduced such services by the end of 2016.”
“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 Juniper Research’s Nitin Bhas.