[August 21, 2017] |
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Juniper Research: Contactless to Account for More Than 1 in 2 POS Transactions Globally by 2022
A new study from Juniper
Research has found more than half (53%) of global transactions at
POS (Point of Sale) will be contactless within 5 years, compared to just
15% this year.
The new research, POS
& mPOS Terminals: Vendor Strategies, Positioning & Market Forecasts
2017-2022, found that adoption in the US would rise sharply over
the period, with contactless rising from less than 2% of transactions
this year to 34%
by 2022. It argued that customer dissatisfaction at the slower
speeds of chip card transactions, allied to burgeoning contactless
infrastructure, would provide further impetus for smartphone-based
payments currently dominated by Apple (News - Alert) Pay.
For more insights, download Juniper's free whitepaper: POS
& mPOS Terminals: Our Vision for 2022
According to the research, in markets where contactless has been heavily
promoted, such as Poland and the UK, adoption has soared, while mandates
both from Visa and Mastercard mean that all POS terminals in many
markets must be contactless-enabled by 2020.
US to Follow European Growth Curve
As research author Dr Windsor Holden pointed out: "While US card
issuers haven't yet made contactless a priority, the extremely positive
response across Europe, both from merchants and consumers, suggests the
US would see very rapid migration at POS if and when contactless cards
become mainstream."
However, the research cautioned that for non-contactless payments, the
US's reluctance to implement PIN at POS meant that the full benefits of
CP (Card Present) fraud reduction, experienced elsewhere by the
migration to EMV, were unlikely to be realised.
Smaller Merchants Drive mPOS Market
The research also anticipated that smaller merchants would increasingly
embrace mPOS (mobile Point of Sale) accessories, which facilitate
payments via a connection to a mobile device, as competition in the
space intensified. It argued that Square's recent entry into the UK
would provide an added stimulus to that market. It further claimed that
the growth in this market would in turn accelerate the transition from
cash to card payments, particularly for lower-value transactions.
Juniper Research (News - Alert) is acknowledged as the leading analyst house in the
digital commerce and fintech sector, delivering pioneering research into
payments, banking and financial services for more than a decade.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170821005062/en/
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