More than half (53%) of global transactions at POS (Point of Sale) will be contactless by 2022, compared to just 15% this year, a new study by Juniper Research has revealed.
The report says that adoption of contactless payments would rise sharply in the US over the period, with contactless transactions surging from less than 2% this year to 34% by 2022.
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Customer dissatisfaction at the slower speeds of chip card transactions, allied to burgeoning contactless infrastructure, would provide further impetus for smartphone-based payments currently dominated by Apple Pay, the report argued.
In markets such as Poland and the UK – where contactless has been heavily promoted – adoption has soared, while mandates both from Visa and Mastercard mean that all POS terminals in many markets must be contactless-enabled by 2020.
Research author Windsor Holden said: “While US card issuers haven’t yet made contactless a priority, the extremely positive response across Europe, both from merchants and consumers, suggests the US would see very rapid migration at POS if and when contactless cards become mainstream.”
However, the report cautioned that for non-contactless payments, the US’s reluctance to implement PIN at POS meant that the full benefits of Card Present fraud reduction, experienced elsewhere by the migration to EMV, were unlikely to be realised.
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