A new study from Juniper Research found that the transaction value of online, mobile and contactless payments will reach $3.6 trillion globally this year, up from $3 trillion last year.
The research attributes the increase to soaring contactless payments continuing as well as improved infrastructure and increased card payment limits in key markets. In the UK the initial limit was £20 for a contactless payment, this has since been increased to £30.
Smartphones
The research also suggests while cards will account for 90% of contactless payments over the next 5 years, Samsung and Apple will help drive consumer awareness and usage of smartphones to fulfil transactions. In fact during Apple’s keynote event, Apple exec Greg Joswiak revealed that over three million cards were registered in China for Apple Pay within three days of its launch in the country. The newly announced Apple SE also has Apple Pay built in, being the cheapest iPhone available it will make the technology accessible to even more people.
Social Commerce
It’s not just Samsung and Apple driving digital payments. Facebook, Pinterest and Instagram have already announced ‘buy’ buttons allowing users to purchase products from their apps within a few clicks. Further to this real-time messaging apps are also moving into commerce. Facebook has already announced users will be able to make purchases through its messenger. WeChat in China saw more than 32 billion ‘red envelope’ monetary gifts sent in a 6 day period in February.
The research also forecasts that mobile wallet adoption would continue to accelerate in developing markets, with nearly 20 countries across Asia and Sub-Saharan Africa now having more mobile money accounts than bank accounts.
