OEM pay wallets could have 450 million users by 2020
Cashless-payments have evolved tremendously over the last few years. The number of customers who tap to pay via NFC (near-field communication) technology on their smartphones has soared lately.
According to the most recent analysis by Juniper Research, the number of customers using OEM (original equipment manufacturer) contactless payments, such as Apple (AAPL) Pay and Samsung (SSNLF) Pay, will grow to 450 million by 2020.
According to the research, Apple Pay will account for one in two OEM pay users globally by that time. OEMs include those contactless payment services provided by smartphone manufacturers compared to third-party apps.
The number of Apple Pay users is surging
According to the research, contactless payments will continue to be dominated by contactless card payments and not OEM pay wallets. The former is still popular in markets such as Asia—China in particular. The adoption of OEM pay wallets has not taken off yet in these markets. According to Juniper, total contactless payments will exceed $1 trillion for the first time this year.
Meanwhile, as the graph above shows, Apple Pay has seen a surge in its number of users over the last few years. Revenue from Apple Pay is part of Apple’s Services segment, which is a key engine of Apple’s overall growth. The segment generated revenue of $9.5 billion in the company’s fiscal third quarter, rising over 31% year-over-year.