U.S. Contactless Payment Card Users Expected to Reach 109 Million by 2011!
A new Packaged Facts report concludes that total contactless credit and debit cards in U.S. circulation will reach 109 million by 2011. According to the report, "with the fast-paced American lifestyle continuing to put pressure on retailers to serve customers more efficiently, and card brands such as MasterCard and Visa pushing for bigger slices of the small-ticket payments pie traditionally reserved for cash, the time is finally right for large-scale penetration of smart cards in the payments market."
Total purchase volume in the U.S. via cards with a contactless feature neared an estimated $15 billion in 2006, registering a 700% CAGR from 2004 to 2006. That figure should increase significantly as the number of contactless transactions—nearly 777 million in 2006—are expected to reach 2.2 billion by 2011.“Card issuers are rapidly expanding their market presence in contactless payments and the percentage of retailers having contactless payment systems is expected to nearly triple within two years,” notes Tatjana Meerman, the Managing Editor of Packaged Facts. “Increasing consumer awareness of the technological, safety, and convenience factors inherent in smart cards will only serve to make penetrating the consumer market much easier in the coming years.”
Stumble It!
I am the Retail Operations Administrator at Harvard University Employees Credit Union. The ease and convenience of contactless payments is now available to our member with the introduction of our new Debit MasterCard with PayPass. Last week PayPass ordering began. We are the first Metavante, as well as Shoreline, client to offer a contactless card. The development of our PayPass card involved working closely with MasterCard, Metavante, Shoreline, and Oberthur.
Jim Lawrence
Posted by: James Lawrence | May 05, 2007 at 10:37 PM