A new study from Juniper Research has predicted that the value of contactless payment transactions will 113% in the next five years, from $7.4 trillion in 2024 to $15.7 trillion in 2029. This growth is attributed to the increased availability of contactless payment for smaller businesses through Soft Point-of-Sale (POS) systems.

The introduction of Soft POS systems, which accept contactless payments via a compatible smartphone, is breaking down cost barriers for small and micro-merchants. Apple's recent announcement of 'Tap to Cash' for person-to-person payments and its extensive roll-outs of 'Tap to Pay' on iPhone are expected to further accelerate this transaction growth.

The value of contactless ticketing transactions is also expected to rise by over 460% between 2024 and 2029, reaching $154 billion in 2029. Contactless ticketing has gained significant traction within the transit space, particularly in the US. Cities that have deployed open-loop ticketing are typically well prepared for a future transition to full Mobility-as-a-Service (MaaS) offerings, providing seamless and multimodal access to transit.

Nick Maynard, Research author at Juniper Research, said: "Current contactless-based open-loop systems are supported by account-based ticketing systems, which facilitate different access tokens and subscriptions. This means that cities that have deployed open-loop ticketing are typically well prepared for a future transition to full MaaS (Mobility-as-a-Service offerings). Under MaaS, access to transit will be seamless and multimodal; unlocking a superior user experience across a wider range of transit options."