Spend On Contactless Tokens Forecast To Reach $79 Billion in 2010
JupiterResearch - in a new research report titled "US Contactless Payments; Primed for Supply, But Industry Must Coordinate to Reach Non-Users" - has announced that it is forecasting the total value of transactions conducted using contactless payment tokens will grow from $500 million in 2006 to $79 billion in 2010 - even though only 12 percent of US online consumers have tried contactless payments to date.
“Amplified issuance and expansion of merchant acceptance are increasing the visibility of contactless payment tokens,” said Ed Kountz, JupiterResearch Senior Analyst and lead author of the report. “There will be 18.6 million contactless tokens in circulation at the end of this year and by the end of 2007, that figure is expected to grow to 37 million in the market.”Maximizing adoption and usage will require enhanced coordination among issuers and merchants to ensure that today’s non-users understand and are comfortable with contactless payments. JupiterResearch findings indicate that 41 percent of non-users of contactless products would try them, if first given assurances that transaction information is secure. Thirty five percent of non-users would want a better understanding of the value proposition.
“Contactless payments have made great strides during the past two years, but have a ways to go for market and user acceptance,” said David Schatsky, President of JupiterKagan. “Issuers need to expand penetration, activation and product visibility while publicly addressing security concerns.”
For additional information on this report or JupiterResearch's Payments & Transactions Service, visit www.jupiterresearch.com.
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