Analysts backed Apple Pay to maintain its leading position in the field of smartphone vendor payment services, fuelled primarily by increased adoption in the US.
In a report into the wider contactless payment sector, Juniper Research predicted Apple Pay’s share of total smartphone payment transactions by value would increase from 43 per cent in 2020 to 52 per cent in 2024.
While increased domestic usage is expected to be the key driver, Juniper Research noted Apple would also benefit from expansion of its service into key markets in Asia, China and Europe.
Research analyst Susannah Hampton, who authored the report, explained Apple will lead the space due to its “unified ecosystem”.
To “make strides in the market”, Hampton said rivals including Google and Samsung must deploy their resepective payment services in more countries.
The analyst company noted smartphone payment services will deliver higher-value transactions than contactless cards between 2020 and 2024, because the latter typically have strict payment limits.
Over the forecast period, Juniper Research predicted the value of transactions across all methods would grow from $2 trillion to $6 trillion, with contactless cards delivering $1.5 trillion of the total.