New data from Juniper Research forecasts that global OEM Pay (Original Equipment Manufacturer) transaction values will surpass $1 trillion in 2024; up from $333 billion in 2020. This increase will be driven by strong growth from Apple Pay in China and the US, as well as growth by rival OEM Pay solutions.
The research predicts that Apple Pay will see transaction value growth of 240% and continue to dominate in terms of global availability. The research suggests that, to challenge Apple’s dominance, other OEM Pay providers must focus on bank partnerships to expand their reach, as well as adding spending insights to wallet apps to drive user engagement.
Mobile ticketing will drive transactions
The research found that contactless deployment in transit will be a major driver, with contactless ticketing volumes growing to 13.6 billion in 2024, from 4.9 billion in 2020. Successful rollouts of contactless payments in large cities, such as OMNY from New York’s Metropolitan Transit Authority, will serve as templates for other deployments, stimulating the market.
Increases driven by Chinese consumers
The research found that China will account for 33% of OEM Pay transaction values by 2024, up from 19% in 2020. China has an affinity for mobile payments, with rapidly rising contactless acceptance at POS. These factors, paired with the gradual opening up of the card market in China to international networks, mean that China will be an important driver of increased contactless usage. Juniper Research recommends that OEM Pay providers sign partnerships in China now, or they will fail to gain traction versus QR payments.
Mobile contactless ticketing has gained momentum by prioritising convenience, as with Apple Pay Express Transit. By offering increasingly frictionless traveller experiences, OEM Pay providers can become integral to the transit market.
Juniper Research author Susannah Hampton