A new study of contactless and payment systems such as Apple Pay and Google Pay predicts that the market will grow about threefold, with Apple the most benefiting, according tomedia Outlet AppleInsider. Juniper Research, which regularly analyzes payment markets, expects Apple Pay to reach $686 billion worldwide by 2024. This will account for 52% of the market segment, mainly due to increased demand and the number of devices that can use Apple Pay.
The new Juniper Research study “Contactless Payments” examines all forms of contactless transactions, including cards and their so-called “OEM payments.” The latter term covers payment systems from non-bank companies such as Apple Pay, Google Pay and Samsung Pay.
Overall, says Susannah Hampton, author of the Juniper Research study, the global contactless market will grow from the current $2 trillion to nearly $6 trillion by 2024. The vast majority of these will be done through contactless cards, while OEM payment transactions will account for about 22%. That leaves the market at about $1.32 trillion, with Apple Pay expected to account for more than half.
“Juniper Research also expects Apple Pay to account for 52 per cent of OEM payment transactions, compared with 42 per cent in 2020,” Hampton said. A major driver of this is the expansion of Apple Pay’s user base in key regions, including the Far East and China, as well as Europe, and the expansion of OEM payments outside of Apple through its Apple Card program. “
She continued: “While Google and Samsung have come a long way in paying for their products, Apple has a more unified ecosystem that will enable it to maintain its market leadership position.” “
Part of the expected increase in contactless payment usage is due to the expected increase in wearable devices such as the Apple Watch, which can make such transactions. Juniper Research reports that by 2019, sales of such devices have reached 100 million units, of which about 20 million have been used for contactless payments.