Contactless Card Transactions To Exceed $2 Trillion by 2021

The value of contactless transactions made via payment cards, mobile, and wearables is forecasted to reach $1.3 trillion worldwide by 2019, more than doubling the 2017 estimate of $590 billion, according to a new report from Juniper Research. The firm also predicts that contactless transactions via debit and credit cards will total more than $2 trillion globally by 2021.

Types of contactless transactions vary by country, according to the researchers. In 2016, mobile wallets accounted for 90 percent of all contactless transactions in the United States; however, cards accounted for more than 90 percent of transactions in many European markets and Canada.

In non-U.S. markets where cards dominate, “it will be difficult for mobile wallet providers to gain existing market share from contactless cards,” reported research author Nitin Bhas. “It is therefore incumbent upon them to deliver innovative services through which the mobile wallet will become the default payment mechanism.”