Study: mobile contactless payments users set to reach 1 billion by 2024
December 21, 2022
The rise of smartphones has changed our lives in insurmountable ways ever since they were first introduced. It shouldn’t be surprising, then, that these devices have affected the way we do payments.
A new study conducted by Juniper Research found that the users of contactless smartphone payments will surpass a billion in 2024. A 60% growth from 782 million users in 2022.
Over 200 million new users will be joining the market by 2024. The report highlighted the increased investment in the infrastructure of the contactless acceptance as key reason to driving growth in addition to the increasing demand for both frictionless and convenient payment methods.
Maximizing Convenience
As with many other payment methods, users look for two factors: ease of use and affordability. Making a payment method convenient is key to attract more users, and smartphones are certainly capable of offering both. The challenge is to add even MORE payment options to it, such as Buy now, pay later:
NFC mobile payment vendors must maximize convenience by offering further payment options, such as BNPL (Buy Now, Pay Later), to encourage greater adoption. BNPL allows consumers to pay in several installments; making high-value purchases more affordable.
Another reason this payment method is becoming more popular is directly linked to smartphone ownership; the more people have access to this tool, the more they will join the contactless payments force.
Smartphone penetration rates among emerging regions, such as Asia Pacific, will exceed 99% by 2024; enabling an additional 67 million individuals to adopt mobile payments as they will possess the necessary hardware to conduct NFC payments via their handsets
In this day and age it is hard to imagine there’s still people that do not have access to this tool, but this will change as they are made more available and affordable.
In addition to all that was listed above, soft POS will allow smartphones to accept NFC payments, which will directly lead to an increase in acceptance infrastructure, as soft POS has a lower cost compared to traditional contactless POS due to the removal of extra hardware.
Want to learn more? Check out Payments Cards and Mobile’s full write-up here.
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