Two factors will help Apple Pay grow thru 2022, predicts payment report

A research report into the Point of Sale industry has predicted that two factors will greatly assist the growth of Apple Pay and other mobile payment services.

The first is the requirement by both VISA and MasterCard that all payment terminals across many major markets must support contactless payment by 2020.

This will mean that it will by then be possible to use Apple Pay at any card terminal. The Juniper report notes that adoption has soared in the UK and other countries where contactless payment has become mainstream.

Second, customer frustration with the relatively slow process of chip-card transactions will drive demand for Apple Pay as a faster alternative.

Customer dissatisfaction at the slower speeds of chip card transactions, allied to burgeoning contactless infrastructure, would provide further impetus for smartphone-based payments currently dominated by Apple Pay.

The report notes that contactless payments currently represent fewer than 2% of U.S. transactions, but predicts that this figure will reach 34% by 2022.

While large businesses will upgrade or replace existing payment terminals, smaller businesses are likely to adopt mobile-based solutions, like Square.

Apple Pay continues to expand, both within the U.S. and internationally. One type of organization that won’t be benefiting, however, are websites promoting white nationalism and other forms of hate, as Apple moves to block the payment service from these.

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