Your Friday fix for global fintech and payments news
This week’s news is based on payment trends – we are looking into the huge surge in contactless payments and how global contactless trends look into the future, seeing how open banking payment initiation is changing the way we pay online and how, despite everything, cash remains a crucial part of the payments industry, ensuring the ATM is here to stay.
Our weekly round-up brings you a dose of some of the biggest news announcements from the past seven days so you can keep an eye on all that’s shaping our world this week.
- Contactless payment market worth over $100 billion by 2026
- Pandemic drives surge in Open Banking-based payment initiation
- Emerging ATM markets continue to show growth potential
A recent article from Payments Cards & Mobile reports that the steady infiltration of NFC-enabled mobile payments is instrumental in the growing adoption of the global contactless payments market. Different segments including transport, retail and healthcare are all seeing an increased demand for contactless payment systems.
Looking across Asia Pacific, more than 67% of consumers prefer to pay in-store via a contactless payment method. While in Australia, more than 90% of all in-store payments have been made using contactless payments since 2018. With these figures in mind, the contactless payment market is said to look to increase at 17% CAGR by 2026 in the Asia Pacific region.
Global shipments of contactless cards are also projected to reach 15 billion units by 2026, with Europe expected to monopolise the contactless market by 2026 due to the ever increasing transactions in the region.
Information from TrueLayer has revealed a huge increase in UK consumers using Payment Initiation when online shopping. During the first month of lockdown, usage of Payment Initiation skyrocketed by 460%, in comparison with the previous steady month-on-month increase of 43%.
COO and CCO of TrueLayer, Shefali Roy said, "The surge during lockdown has been remarkable and has not been confined to any one group of people - it is very much a broad based trend. However, perhaps the most interesting result our analyses revealed is that growth has not dropped off - meaning that those who began using Payment Initiation during lockdown are continuing to do so after restrictions were eased."
ATM penetration in developing markets is projected to see a speedy expansion, with ATMs now supporting newly banked populations who are reliant on cash, according to RBR. Whilst some mature ATM markets are seeing a decline in demand, there is still only a 1% decrease in the number of ATMs globally expected by 2025.
Rowan Berridge who led the research said, “While several major markets are causing an overall global decline in ATM installations, the reality is that potential remains in the majority of countries. Cash is by no means dead, and in countries seeing economic development and ever greater levels of banked population, ATMs will remain essential for the foreseeable future”.
With a fall in the number of bank branches globally, it is becoming ever more important for the ATM to be multi-functional. This will allow banks to expand their presence in more remote areas without the costs of running a premises.