OEM Pay Transaction Values Will Exceed $1 Trillion by 2024
Global OEM Pay (Original Equipment Manufacturer) transaction values will surpass $1 trillion in 2024, up from $333 billion in 2020, according to Juniper Research. This increase will be driven by strong growth from Apple Pay in China and the US, as well as growth by rival OEM Pay solutions.
The new research predicts that Apple Pay will see transaction value growth of 240% and continue to dominate in terms of global availability. The research suggests that, to challenge Apple’s dominance, other OEM Pay providers must focus on bank partnerships to expand their reach, as well as adding spending insights to wallet apps to drive user engagement.
The study found that contactless deployment in transit will be a major usage driver, with contactless ticketing volumes growing to 13.6 billion in 2024, from 4.9 billion in 2020. Successful rollouts of contactless payments in large cities, such as OMNY from New York’s Metropolitan Transit Authority, will serve as templates for other deployments and further catalyse the market.
“Mobile contactless ticketing has gained momentum by prioritising convenience, as with Apple Pay Express Transit. By offering increasingly frictionless traveller experiences, OEM Pay providers can become integral to the transit market,” said research author Susannah Hampton.
The research found that China will account for 33% of OEM Pay transaction values by 2024, up from 19% in 2020. China has an affinity for mobile payments, with rapidly rising contactless acceptance at POS. These factors, paired with the gradual opening up of the card market in China to international networks, mean that China will be an important driver of increased contactless usage.