Juniper Research has released a new study that found the global value of contactless POS (point of sale) terminal transactions, conducted in-store via cards, mobile and wearables, will approach USD500 billion annually by 2017, an increase from an estimated USD321 billion this year, the company said.
The company said the low value nature of contactless payments means that it will only represent just 5.0 percent of the total value of all POS transactions in 2017.
Contactless terminals now account for a significant minority of terminals in many regions (and in a majority in several national markets) and, as of the end of 2015, numbered 15.3 million, or nearly 20 percent of all POS terminals worldwide. These numbers are expected to increase over the next five years, with contactless accounting for more than two in three POS terminals by 2021.
Smartphone and tablet-based mPOS terminals are expected to handle 20 percent of all retail POS transaction value by 2021.
Juniper Research is an analyst house in the digital commerce and fintech sector, delivering research into payments, banking and financial services.