The total value of contactless card transactions worldwide will reach US$2.5tn in 2021, up from US$1.7tn in 2020, Juniper Research predicts.
The researchers also forecast that card payments will retain “the majority share of overall contactless transaction values at 79% in 2021”.
In addition, the research identifies that “market growth has already been catalysed by increased contactless card use in previously underdeveloped markets such as the US and Germany, and that this shift will be permanent.”
“The US will see transaction value growth of 136% between 2020 and 2021” and “is anticipated to see further growth of almost 300% over the next five years,” the researchers say.
Market growth in contactless transactions will also lead to biometric payment cards seeing “more extensive pilot schemes and wider deployments; offering an increased value proposition and presenting a way for banks and issuers to provide an innovative offering and differentiate themselves from the competition,” the researchers add.
The research identifies the “combination of accelerated card issuance and usage during the pandemic with a series of global transaction limit increases” as the key drivers of market growth in contactless transactions.
• Find full and up-to-date details of worldwide contactless limit increases in NFCW’s table of contactless transaction limit changes.