Kaleido Intelligence has revealed in a new report that OEM (original equipment manufacturer) pay transaction value grew 155% in 2020.
According to the press release, OEM pay contactless transactions, driven by Apple Pay, Samsung Pay, and Google Pay, will reach more than USD 1 trillion in 2022. This is up 377% from pre-COVID-19 levels in 2019 and will represent around 11% of total in-store proximity transactions conducted via contactless and QR code payment methods.
Furthermore, Kaleido’s new report, Future Instore Retail Payments, shows that offline purchases witnessed a substantial increase and acceleration of low-value basket purchases becoming contactless, contributing towards a 105% increase in in-store contactless card and mobile payment transaction value in 2020.
However, while contactless payment has become de facto in most European markets, this has not been the case in the US. More recently, the US witnessed tremendous growth in overall contactless payments driven by falling issuance cost, wider merchant acceptance, and growing consumer adoption. This was further accelerated, as in many other markets, by the ongoing pandemic.
Moreover, following a substantial fall in retail spend in China, Kaleido estimated that the global QR code-based proximity retail payments market declined by 7% in 2020 to reach just over USD 2.8 trillion. This is predicted to reach USD 3 trillion once again in 2023, driven by growth across new markets.
Meanwhile, there is a steep decline in cash usage, with markets such as China, the US, Australia, Denmark, Finland, and Sweden leading the way to become cashless societies. Global in-store cash transactions were over USD 8 trillion in 2016, and have declined steadily since then, with 2020 representing the biggest fall of 15%.
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