Contactless payments will account for more than half (57%) of the total global value of transactions made at the point of sale (POS) by 2026, compared with just under 25% in 2021, Juniper Research predicts.
It also forecasts that the number of smartphones enabled to accept contactless payments using soft POS technology will grow from 3.2m worldwide in 2021 to almost 24m in 2026.
The growth in contactless POS transactions by value is “supported in large part by increasing contactless payment limits” and “represents a steep change in how consumers pay,” the analysts say.
The ‘POS Terminals: Device Innovation, Competitive Landscape & Market Forecasts 2021-2026’ research says that “soft POS, the ability to use NFC on mobile devices to accept contactless payments, will accelerate” because “it provides a cheaper route into card acceptance than ever for the smallest businesses, meaning that it is compelling for this particular niche”.
“However, the research emphasised that soft POS not being an immediately recognisable POS terminal will limit consumer confidence around security, restricting growth,” the analysts add.