It anticipates that investment in the underlying contactless payments ecosystem, such as contactless‑enabled POS (Point-of-Sale) terminals and device-level support, will be the key driver of contactless transactions value growth over the next five years. This growth owes to the convenience that mobile and wearable payments offer consumers, eliminating the need to carry and produce a contactless card and easing the burden of transitioning from cash.
A new study from Juniper Research has found that the value of contactless payment transactions will reach $10 trillion globally by 2027; from $4.6 trillion in 2022. In turn, the report urges vendors to foster the adoption of their NFC ticketing solutions, targeting the public transport sector in developed regions that are increasingly seeking out ways to improve ticketing efficiencies. Furthermore, the report identified that the high growth of POS terminals capable of accepting contactless payments is also fuelling this growth.
This growth will be further accelerated by the rapid deployment of NFC ticketing solutions across public transport networks to reduce customer payment friction. The research anticipates that contactless ticketing spending is set to grow by over 440% between 2022 and 2027. Mobile and wearable contactless payments are anticipated to grow by 221% between 2022 and 2027. Accordingly, the research urges POS vendors to prioritise convenience when designing NFC solutions for the market, which can cater to the growing number of devices that offer NFC payment capabilities.
Contactless Ticketing Set for Strong Growth
In comparison, contactless card payments are anticipated to grow by only 119% during the same period. The research predicts that the push toward cashless societies will drive growth as countries look to decrease their reliance on cash.
