Recent research on “contactless payments” by Juniper Research predicts that the market will grow about three times. In addition, it claims that Apple will benefit the most from this growth. According to the research report, by 2024, Apple’s global Apple Pay transactions will reach $686 billion. This will account for 52% of the market. This is mainly due to the increase in contactless payment demand and the increase in the number of active Apple Pay devices.
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The research considers all forms of contactless transactions, including card payments and OEM payments. OEM payments typically cover payment systems from non-bank companies, such as Apple Pay, Google Pay, and Samsung Pay.
Overall, the study shows that by 2024, the global contactless payment market will grow from the current $2 trillion to nearly $ 6 trillion. Most of them will be via contactless cards, and OEM payment transactions will account for about 22%. This will allow its market size to reach $1.32 trillion, of which Apple Pay should account for more than half.
Apple Pay will account for 52% of OEM payment transactions. A major driver of this is the expansion of Apple in key regions, including the Far East, China and its Europe Pay user base has been expanded through its Apple Card program. While Google and Samsung have made great strides in payment, Apple has a more unified ecosystem that will enable it to maintain its market leadership the report claims
Part of the expected increase in contactless payment usage is due to the expected growth in wearable devices (such as the Apple Watch) that can conduct such transactions. Juniper Research reports that by 2019, 100 million such devices have been sold, of which approximately 20 million have been used for contactless payments.