The volume of mobile transactions is expected to surge by 93% in the next two years.
As part of a new study from Juniper Research, it found the transaction volumes for mobile payments is anticipated to rise from 26 billion in 2021 to 49 billion in 2023.
The increase will see mobile contactless payments exceed contactless card volumes, with the vertical growing twice as fast.
One of the areas to experience the most growth will be the Latin America market, with a 400% rise in contactless mobile transaction volumes expected to happen between 2021 and 2023. A driver of this adoption is attributed to increasing smartphone penetration and improved access to digital financial services over the next few years.
Research author Susannah Hampton said, “Latin America has seen rapid development in its digital infrastructure in recent years, shown by the increased investment into supporting digital transformation, as well as an increasingly favourable regulatory environment. This will further drive payment digitalisation in the region.”
Another finding of the report was that there is low trust among consumers and digital wallets. As a result, Juniper recommends wallets implement biometric authentication in their services.
To prepare for the rise in mobile transactions, Contactless Payments: Trends, Opportunities and Market Forecasts 2021-2026 recommends mobile contactless payment wallets offer value-added services, such as loyalty schemes and personal financial management. This will differentiate themselves in the competitive market.
Finally, the report claims 99% of all contactless payment transactions by volume will be tokenised.
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