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Data provided by A.T. Kearney’s global study
A.T. Kearney’s global study shows that rolling out contactless cards could drive a significant lift in the number of transactions per card well beyond the natural card payment trajectory prior to the promotion of contactless cards.
Additional data points found in the study include:
- In the US-like countries studied, contactless card adoption has translated into five to 40 new transactions per card per year.
- Consumer card transactions increased up to 30 percent over the three years after rollout.*
- Globally, contactless usage has been particularly strong at high-transaction-volume merchants with low average ticket sizes where checkout speed and convenience matter (food and grocery, quick-service restaurants, restaurants, and drug stores and pharmacies).
- In the United States, A.T. Kearney forecasts at least 70 percent of all consumer payment transactions will be card-based by 2022, compared with an estimated 62 percent in 2017.
The US market is ready for contactless
For merchants, contactless cards provide a way to increase the speed of service, grow sales volume by serving more customers during peak hours, reduce the time and money spent on cash handling, and improve customer loyalty. As a result of the 2015 migration to EMV contact chips, US merchants have largely enabled the terminal infrastructure to accept contactless cards:
- As of March 2018, 48 percent of Visa face-to-face card transactions took place at contactless-enabled merchants.
- Seventy percent of merchant locations have hardware that is capable of accepting contactless payments.
- More than 95 percent of new terminals shipped are contactless-capable.
Read the full announcement here