Mobile contactless transactions to exceed 49 billion worldwide in 2023
Transaction volumes for mobile payments to grow by more than 90% over 2 years. Source: shutterstock.com
According to Juniper Research, transaction volumes for mobile payments will grow from 26 billion in 2021 to 49 billion in 2023; representing a growth of 92%.
Growth in mobile contactless transaction volumes will significantly exceed contactless card volumes by 2023, as mobile contactless transactions grow twice as fast as contactless card transactions. The report identified the enhanced security and increasing cross-channel payment capabilities of mobile contactless payments as key drivers of growth.
Besides, Latin America is expected to experience growth of over 400% in contactless mobile transaction volumes between 2021 and 2023. The research predicts that increasing smartphone penetration, alongside improved access to digital financial services will drive demand for digital wallets services in the region over the next two years.
The research found that low trust amongst consumers is a key hurdle digital wallets face. Consequently, it urges wallet vendors to increase support of biometric authentication in their services to allay the fears of those hesitant about adopting the technology.
It found that the ability of mobile payments tokenisation to reduce the scope of payment security requirements means that the tokenisation of mobile payments will become ubiquitous. Juniper Research anticipates that by 2023, 99% of all contactless payment transactions by volume will be tokenised.
We’ve reported that TikTok teamed up with US-based fintech.
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