Global spending via payment cards is expected to reach $45.2 trillion by 2023, representing average annual growth of 10% from 2017 to 2023, according to London-based research firm RBR.
The firm’s report, “Global Payment Cards Data and Forecasts to 2023,” stated that $25.1 million worth of purchases were transacted via payment card worldwide in 2017, up from 13% the previous year.
The report also suggested that average value of card-based payments will decline from $67 to $62 as contactless cards become more frequently used for low-value payments, RBR stated.
While contactless payments have taken hold in many countries, progress has been slower in the U.S. Another recent research report from the Pew Research Center indicated the percentage of consumers who no longer use cash during a typical week has been growing in the last few years, from 24% in 2015 to 29% in 2018.
The rate of change may be sluggish in the U.S., but progress could speed up. Growing mobile payment usage may steer consumers away from cash, while broadening availability, acceptance and use of contactless cards may drive them toward those options.
Issuers and retailers are doing their part. Chase recently announced it would issue Visa cards with contactless technology later this year, and card networks have started to promote contactless cards more, too. Meanwhile, retailers are also driving that migration, as big-name store operators like Target and Costco have moved to accept contactless payments in recent months.
Then there's the ease of use. Contactless cards may continue to win consumers over because they are quicker and don't require PINs or additional authentication to complete payments.