Consumers will use payments services provided by smartphone makers and other original equipment manufacturers (OEMs) to make transactions valued at more than US$1tn a year by 2024, up from US$333bn in 2020, according to Juniper Research.
Apple Pay, China and the adoption of contactless payments for transit ticketing will be the key drivers of the forecast 210% growth in transaction volumes, the researchers predict.
“Apple Pay will see transaction value growth of 240% and continue to dominate in terms of global availability,” Juniper says. “China will account for 33% of OEM Pay transaction values by 2024, up from 19% in 2020.”
“Contactless deployment in transit will be a major usage driver, with contactless ticketing volumes growing to 13.6bn in 2024, from 4.9bn in 2020.
“Successful rollouts of contactless payments in large cities, such as Omny from New York’s Metropolitan Transit Authority, will serve as templates for other deployments and further catalyse the market.”