Contactless card transaction values will reach $2.5 trillion by the end of the year according to new research by Juniper.
The report suggested that global contactless card transaction values will rise from $1.7 trillion from last year to $2.5 trillion by the end of this year, with cards retaining the majority share of overall contactless transaction values at 79 per cent.
Juniper believes the pandemic has significantly accelerated the already existing contactless card usage trend and will continue to do so into the future.
Another reason cited for the increase in card issuance and usage is a series of global transaction limit increases which have unlocked significant growth potential for contactless payments.
The report signified that growth in the market has been catalysed by increases in contactless card usage in previously underdeveloped markets including the US and Germany and that the shift will be permanent.
The US will see transaction value growth of 136 per cent between 2020 and 2021, with major US retailers rolling out contactless acceptance and consumers enjoying the added convenience offered by touch-free card payments.
“Markets such as Germany have seen an unprecedented shift towards contactless cards in the past 18 months,” Juniper research author Susannah Hampton said.
“This shift has severely diminished the role of cash and created significant opportunities for card issuers to gain market share.”
Biometric payment cards have also tapped into the trend towards secure, convenient and hygienic payments as the pandemic drove contactless methods of payment.
Juniper said that while biometric cards are still fairly niche, they are set to be used in wider and more extensive pilot schemes in the near future.