The total value of contactless transactions made using payment services provided by smartphone and other original equipment manufacturers (OEMs) will reach more than US$1tn in 2022, a rise of 377% on 2019, Kaleido Intelligence predicts.
The increase in global transaction value will be “driven by Apple Pay, Samsung Pay and Google Pay” and will result in OEM Pays accounting for around 11% of all in-store proximity transactions made using contactless and QR payment methods in 2022, the researchers say.
‘The Future of Instore Retail Payments’ report also shows that global OEM Pay transaction values grew by 155% in 2020, while in-store QR code payments fell by 7% and in-store cash transactions decreased by 15%.
The USA in particular has “witnessed tremendous growth in overall contactless payments driven by falling issuance cost, wider merchant acceptance and growing consumer adoption,” the report adds.
“Despite lagging behind many global markets, the US looks set to scale contactless payment adoption and spend rapidly.
“With a strong OEM Pay customer base forecast to exceed 200 million in 2022, and significant growth in consumer adoption of contactless cards, Kaleido predicts that contactless transactions in the US will reach $1.6tn by 2022.”
In March 2020, Juniper Research predicted that OEM Pay transaction volumes would exceed US$1tn a year by 2024.