The number of Apple Pay, Samsung Pay, and Android Pay (OEM-Pay) users are expected to hit 100 million by summer and the top 150 million by year-end 2017.
New data from UK-based Juniper Research, also found that 2015/16 were watershed years for HCE (Host Card Emulation) in terms of commercial service rollouts. Juniper estimates that at least 194 banks had introduced such services by the end of 2016. Juniper expects PayPal, already near ubiquitous in the online space, to rapidly deploy a portfolio of contactless payment and loyalty solutions that will allow it to compete effectively for market share.
The new report: “Contactless Payments: NFC Handsets, Wearables & Payment Cards 2017-2021”: calculates the combined market share of Apple, Samsung, and Google (via Android Pay), increased from 20% in 2015 to 41% in 2016, as a proportion of total mobile contactless payment users. Juniper forecasts that this will rise to 56% by 2021, as the trio’s combined user base exceeds 500 million.
The Juniper research found that Apple Pay, and the alternative wallets that have followed in its wake, are set to establish themselves as the primary contactless mechanisms of choice in the US. However, the challenge facing Apple and its rivals is to ensure that the infrastructure is in place for consumers to make in-store payments.
Juniper expects HCE adoption to rise 5-fold over the next four years.
The free white paper is available for immediate download.