A recent study from Juniper Research shows that Apple Pay adoption could increase as much as 34% by 2022 because chip-and-PIN sucks. Right now contactless payments like Apple Pay account for less than 2% of transactions. Chip-and-PIN technology is often slow to use, and frustration with this could make customers turn to Apple Pay more often.
Following Europe’s Lead
The United States is behind other countries throughout Europe when it comes to adoption of chip-and-PIN, and Tim Cook confirmed this by saying Apple Pay adoption is “strongest in international markets” because of the faster development of mobile payment infrastructure.
Juniper’s study, called POS & mPOS Terminals: Vendor Strategies, Positioning & Market Forecasts 2017-2022, shows that 53% of global point of sale transactions will be contactless in just five years, compared to 15% this year.
The research author, Dr. Windsor Holden, points out:
While US card issuers haven’t yet made contactless a priority, the extremely positive response across Europe, both from merchants and consumers, suggests the US would see very rapid migration at POS if and when contactless cards become mainstream.
Mom and Pop Stores
The research also thinks that small businesses would embrace mobile payment infrastructure faster than their bigger business peers. As an example, it argues that Square’s entry into the UK market is contributing a market growth because it’s often faster to use for smaller transactions.