The value of contactless payment transactions will grow by 106 per cent from $7.7 trillion in 2025, reaching $18.1 trillion by 2030, a new study finds.

According to analyst Juniper Research, the fastest growing contactless payment mechanism driving this expansion is near-field communication (NFC) ticketing; projected to grow by 300 per cent over the next five years. NFC ticketing enables quick tap-in, tap-out access for transport and events; optimising queueing while maintaining security.

Smart city initiatives

NFC ticketing is projected to grow from 11.2 billion transactions in 2025 to 44.8 billion by 2030 – driven largely by the metro sector. To fully realise this growth, Juniper recommends providers should focus on making NFC ticketing interoperable across multiple transport modes and operators, as well as collaborating with local authorities to align with smart city initiatives. These strategies will embed contactless use deeper into daily routines, boosting adoption.

Juniper reckons the next fastest growing contactless payment mechanism is non-OEM digital wallets – those developed by banks or fintechs, rather than device manufacturers – which are projected to grow 113 per cent over the next five years.

“To break through the entrenched dominance of OEM wallets, new contactless payments providers must differentiate through added value such as loyalty rewards, real-time spending insights, and integrated digital ticketing capabilities”

The study notes this growth is fuelled by Apple’s move to open iPhone NFC access; allowing third-party apps to securely store payment credentials and enable tap-to-pay transactions. This paves the way for direct account-to-merchant payments that bypass Apple Pay and card networks.

“This increases competition in the mobile contactless payments market; posing a direct threat to card schemes and OEM wallets,” said Lorien Carter, research analyst at Juniper Research and report author.

Source: Smart Cities World