A new study of JuniperResearch found that the total number of unique users of contactless mobile payment will reach one billion worldwide by 2024; going from 782 million in 2022, which represents a 60% growth. The report identified further investment in contactless acceptance infrastructure, especially in emerging regions, as key to driving growth, through which more than 200 million new contactless payment users will be added to the market by 2024.
‘Convenience’ accelerates adoption
The research predicts that rising consumer demand for frictionless and convenient payment methods is also accelerating this growth, as consumers only require a smartphone or NFC-enabled device to use contactless payments, thereby eliminating the need for carry multiple payment cards.
The author of the investigation, Jordan Rookesexplained: “The NFC mobile payment providers should maximize convenience by offering more payment options, such as BNPL (Buy Now, Pay Later), to encourage greater adoption. BNPL allows consumers to pay in various installments; making high-value purchases more affordable. ”
Rising smartphone penetration in emerging regions will drive growth
The research cites rising smartphone ownership in emerging regions as a key driver of this growth. Smartphone penetration rates among emerging regions such as Asia Pacific, will exceed 99% by 2024; allowing that An additional 67 million people adopt mobile paymentssince they will have the necessary hardware to make NFC payments through their phones.
To capitalize on these high-growth markets, NFC mobile payment providers should encourage consumers to switch from mobile money to NFC payments by educating consumers about the benefits NFC payments provide, while assisting in efforts to improve the NFC acceptance infrastructure. The advent of soft POS, which enables smartphones to accept NFC payments, will rapidly increase contactless acceptance infrastructure; due to the lower cost associated with soft POS, compared to traditional contactless POS, as it eliminates the need for additional hardware.