More than 100 million Americans will use proximity mobile payments in 2021.
The pandemic has not only altered consumers’ shopping behaviors, but it’s also changed how they pay for goods and services.
A significant number of people in the US were already using proximity mobile payments regularly before the pandemic—about 72 million in 2019, according to our estimates. As more consumers experimented with different forms of payment in 2020, however, the number of proximity mobile payment users in the US rose by 29.0% year over year to 92.3 million. We expect the user base to surpass 100 million this year and growth to continue steadily through the end of our forecast period in 2025.
“Contactless payment is not just taking the form of traditional credit and debit cards waved in front of a payment terminal, but more so from mobile wallets like Apple Pay, Google Pay, and retailers’ mobile apps,” said Oscar Orozco, eMarketer director of forecasting at Insider Intelligence.
Visa announced that usage of its contactless cards in the US was up 150% year over year last March, and Mastercard reported about a 40% increase in contactless payments in Q1 2020. “While some of this was driven by contactless cards, what also spurred usage growth was increased adoption of cards in mobile wallets,” Orozco said.
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