Contactless payment transactions, driven by Apple Pay, Samsung Pay and Google Pay, will reach more than US$1 trillion in 2022, finds fintech and payments research specialists Kaleido Intelligence.
This is up 377% from pre-COVID-19 levels in 2019 and will represent around 11% of total in-store proximity transactions conducted via contactless and QR code payment methods, note the research group.
According to Kaleido’s new report, Future Instore Retail Payments, original equipment manufacturer (that wold be Apple, Samsung, and Google) Pay transaction value grew 155% in 2020, following the impact of COVID-19. The global pandemic has had a significant effect on how consumers shop: while global in0store retail sales declined by 7% in 2020, online sales increased by 9%.
Kaleido says that, however, in-store offline purchases witnessed a substantial increase and acceleration of low-value basket purchases becoming contactless, contributing towards a 105% increase in in-store contactless card and mobile payment transaction value in 2020.
While contactless payment has become de facto in most European markets, this has not been the case in the U.S., according to Nitin Bhas, chief of Strategy & Insights at Kaleido. More recently, the US witnessed tremendous growth in overall contactless payments driven by falling issuance cost, wider merchant acceptance and growing consumer adoption. This was further accelerated, as in many other markets, by the ongoing Coronavirus pandemic, Bhas adds.