The value of the mobile contactless payment market is projected to increase by nearly $500 million to $2.489 trillion by the end of 2021, translating to a 24 percent Year on Year increase and a 107 percent growth rate in two years according to the research data analysed and published by ComprarAcciones.com
The mobile contactless payment market crossed the $2 trillion thresholds in 2020 amidst growing demand for the payment options which has been on a steep uptrend in recent years, gaining additional impetus from the pandemic in 2020.
The option started to gain trend in Nigeria in 2020 when few banks adopted it owing to the effects of the pandemic. Nigerian banks prior to the pandemic had issued over 10 million payment cards with the contactless feature but which cardholders did not use owing to non-agreement on the modalities such as the Cardholder verification method (CVM) limit and more.
A contactless card is a smart card that uses radio frequency (RF) technology to interact with a reader or POS terminal. Each card has an antenna embedded inside the card that enables communication with the reader without physical contact. Contactless cards have a wavelike symbol on them to show they can do contactless transactionsNigerian banks, prior to the pandemic
To make payment with a contactless card, all you have to do is wave or tap your contactless card over a reader, whether a POS terminal or an ATM. If the amount is less than the CVM
Based on a report by eMarketer, mobile payment app users in the US rose by 29 per cent in 2020 to 92.3 million. In 2021, the figure is expected to cross the 100 million thresholds, rising by 9.7 per cent to 101.2 million.
The mobile contactless payment market was worth $755.6 billion in 2018. It grew by 90 percent in 2019 to $1.198 trillion. In the period between 2021 and 2023, it is projected to grow by 40 per cent to $3.516 trillion. By 2025, it will be worth about $4.6 trillion.
The average mobile payment transaction value is set to grow by 25 per cent from the 2019 figure to $1,670 in 2021. It will soar by 22 per cent 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 a 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 a 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.
Data from the Nigerian Interbank Settlement System (NIBSS) shows that as of January 2020, Nigeria has 449,998 registered POS terminals, with 306,409 of these terminals deployed. For 2019, there were 438.6 million POS transactions with a value of 3.2 trillion Naira, with a mean value of 7,307 Naira.
The number of Automated Teller Machines (ATMs) according to NIBSS was 17,518 as of December 2019. For 2019, there were 839.8 million transactions with a value of 6.5 trillion Naira.
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