A new study from Juniper Research has discovered that the number of mobile wallets using contactless technology is expected to reach 200 million by 2016.
This prediction represents a growth of more than 100% from the end of 2014. While the research found that the historic growth of mobile wallet usage was driven by person to person services, the launch of Apple Pay has sparked a flurry of activity in the contactless technology market.
The research argued that public awareness of the contactless payment system has heightened through the launch of Apple Pay and that numerous banks were now partnering with Visa or MasterCard to implement their own brand contactless wallets, using secure based cloud elements.
Research also observed that the Merchant Customer Exchange consortium has postponed the launch of its own contactless service, with several retail partners now rethinking their ‘closed shop’ position with Apple Pay.
“By the time MCX launches, US consumers will have a choice of perhaps half a dozen other mobile wallet solutions, not to mention the fact that an increasing number will also have contactless payment cards. In addition, the reliance on store brand payment cards could ultimately be a fatal flaw for the service”, stated the research author Dr. Windsor Holden.