Demand for mobile contactless payment options has been on a steep uptrend in recent years, gaining additional impetus from the pandemic in 2020. The space is expected to maintain its robust momentum through 2021 and beyond.
According to the research data analyzed and published by ComprarAcciones.com, the mobile contactless payment market crossed the $2 trillion threshold in 2020. In 2021, its value is projected to increase by nearly $500 million to $2.489 trillion. That will translate to a 24 percent YoY increase and a 107 percent growth rate in two years.
Based on a report by eMarketer, mobile payment app users in the US rose by 29% in 2020 to 92.3 million. In 2021, the figure is expected to cross the 100 million threshold, rising by 9.7 percent to 101.2 million.
The mobile contactless payment market was worth $755.6 billion in 2018. It grew by 90% in 2019 to $1.198 trillion. In the period between 2021 and 2023, it is projected to grow by 40 percent to $3.516 trillion. By 2025, it will be worth about $4.6 trillion.
Average mobile payment transaction value is set to grow by 25 percent from the 2019 figure to $1,670 in 2021. It will soar by 22% in the two subsequent years to $2,051 in 2023.
According to Statista, there were 901.2 million users of mobile contactless payments globally in 2019. The figure rose to 1.34 billion in 2020 and is expected to rise 11 percent to 1.49 billion by the end of 2021. By 2025, it will rise to 1.89 billion.
China is set to be the top market in the segment, with total transaction value reaching $1.3 trillion in 2021. By 2023, it will account for over 50 percent of the global market. The US will be second with total transaction value estimated at $465.1 billion in 2021, about a third of China’s.
Total mobile contactless payment users in the US will rise to 125 million by 2025. In 2021, they will account for 43.2 percent of all smartphone users, rising to 50.1 percent by 2025.