53 percent of transactions at POS (Point of Sale) will be contactless within 5 years against 15 percent this year, according to Juniper Research.
POS adoption in the US would rise sharply during 2017-2022, with contactless rising from less than 2 percent of transactions this year to 34 percent by 2022. Customer dissatisfaction at the slower speeds of chip card transactions, allied to burgeoning contactless infrastructure, will provide impetus for smartphone-based payments currently dominated by Apple Pay.
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.
Research author Dr Windsor Holden said: “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.”
For non-contactless payments, the US’s reluctance to implement PIN at POS meant that the benefits of CP (Card Present) fraud reduction, experienced elsewhere by the migration to EMV, were unlikely to be realised.
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. Square’s recent entry into the UK will provide an added stimulus to that market. Growth in this market would in turn accelerate the transition from cash to card payments, particularly for lower-value transactions.