50% POS Transactions to be Contactless by 2022
If a new study by Juniper Research is anything to by, then more than 50% of global transactions at Point Of Sale (POS) terminals would be contactless by 2022 – a massive surge, given the 15% at which they stand right now!
The POS & mPOS Terminals: Vendor Strategies, Positioning & Market Forecasts 2017-22, found out that switch to contactless payments would surge the 1700% mark (from 2% this year to a whopping 34% in 2022) in the coming five years. And the trend would become a norm in most of the developed as well as developing and emerging markets.
Customer dissatisfaction over the slow speed of chip card processing, coupled with the fast-growing contactless infrastructure could be attributed to this paradigm shift. Mandates from both Visa and Mastercard also mean that all POS terminals in most of the emerging and developing markets, have no other option, but to become contactless by 2020.
An extremely positive response from both merchants and consumers in Europe could encourage the US and other global markets to rapidly migrate to contactless infrastructure, thus making contactless mainstream in the next 5 years.
SMEs to drive mPOS growth
The study by Juniper Research also predicts an overwhelming increase in the use of mPOS (Mobile Point Of Sale) terminals, with small and medium enterprises driving the growth. The entry of innovative and aggressive FinTech players like Paynear among others, could just boost the growth, as competition in the sector intensifies.
The research goes on to say that the transition from cash to contactless payments would be seamless, given the multiple options now available with both merchants and consumers.