Mobile and contactless payments will almost double in value over the five years as emerging markets across the globe begin to adopt the new breed of technology in droves.
Data from Juniper Research reports the annual transaction value of online, mobile and contactless payments will rise from just over $2.5 trillion [£1.4 trillion] this year to $4.7 trillion [£2.7 trillion] by 2019.
The numbers are part of the Digital Payment Strategies: Online, Mobile & Contactless 2014-2019 report that found the largest increase will take place through remote physical goods purchases. It also pointed out that emerging markets like China will see an increase in activity with the likes of Alibaba having a strong influence backed up by the fact the retailer accounted for 20 per cent of global B2C and C2C eRetail in 2013.
An increase in the amount of mobile and tablet users making purchases is also contributing to the upsurge in numbers and it means that in 2014 those buying through mobile handsets and tablets will outstrip desktops and laptops for the first time.
Contactless payments, meanwhile, will be driven by card purchases instead of mobile devices but the arrival of host card emulation-based NFC services will help to increase mobile transactions even further.
“While we are now seeing contactless transactions scaling up in markets such as Australia, Poland and the UK, almost all current consumer usage is via the card. However, with banks increasingly attracted to an NFC model in which they have full control of the customer, then we may well see some high-profile deployments in the medium term,” added Dr Windsor Holden, author of the report.
Juniper Research doesn’t mention whether it has taken Apple’s possible entry into the mobile payments arena into account and when it decides to do so the projections will be even higher.
Image Credit: Flickr (Amit Gupta)