Contactless Payment Transactions to Hit $15.7 Trillion by 2029

Contactless Payment Transactions to Hit $15.7 Trillion by 2029

A new study by Juniper Research found the value of contactless payment transactions will grow by 113% over the next five years, from $7.4 trillion in 2024. The new research, featuring comprehensive market sizing and forecasts for both Contactless Payments and Digital Ticketing, found greater contactless payment availability for smaller businesses with Soft POS systems, is powering growth.

As access becomes more widespread, users increasingly expect contactless payments, creating a virtuous cycle of increasing use. The launch of Soft POS systems, where contactless payments can be accepted using a compatible smartphone, is breaking down cost barriers to small and micro-merchants adoption of contactless payments, increasing acceptance overall.

Additionally, the study predicted that Apple’s recent announcement of Tap to Cash for person-to-person payments, and its extensive rollouts of Tap to Pay on iPhone will further accelerate this transaction growth. The research found that the value of contactless ticketing transactions will increase by over 460% between 2024 and 2029, reaching $154 billion in 2029. Contactless ticketing has gained significant traction within the transit space. Growth is robust in the US, where it is experiencing widespread rollout.

“Current contactless-based open-loop systems are supported by account-based ticketing systems, which facilitate different access tokens and subscriptions. This means that cities that have deployed open-loop ticketing are typically well prepared for a future transition to full MaaS (Mobility-as-a-Service offerings). Under MaaS, access to transit will be seamless and multimodal, unlocking a superior user experience across a wider range of transit options,” explained research author Nick Maynard.