JupiterResearch Forecasts the Value of Transactions Conducted Using Contactless Tokens Will Reach $79 Billion in 2010
New York, NY, November 28, 2006–JupiterResearch, a leading authority on the impact of the Internet and emerging consumer technologies on business, finds that the total value of transactions conducted using contactless payment tokens will grow from $500 million in 2006 to $79 billion in 2010. According to a new JupiterResearch report, “US Contactless Payments; Primed for Supply, But Industry Must Coordinate to Reach Non-Users,” growth will be fierce over the next five years, even though only 12 percent of US online consumers have tried contactless payments to date.
“Amplified issuance and expansion of merchant acceptance are increasing the visibility of contactless payment tokens,” said Ed Kountz, JupiterResearch Senior Analyst and lead author of the report. “There will be 18.6 million contactless tokens in circulation at the end of this year and by the end of 2007, that figure is expected to grow to 37 million in the market.”
Maximizing adoption and usage will require enhanced coordination among issuers and merchants to ensure that today’s non-users understand and are comfortable with contactless payments. JupiterResearch findings indicate that 41 percent of non-users of contactless products would try them, if first given assurances that transaction information is secure. Thirty five percent of non-users would want a better understanding of the value proposition.
“Contactless payments have made great strides during the past two years, but have a ways to go for market and user acceptance,” said David Schatsky, President of JupiterKagan. “Issuers need to expand penetration, activation and product visibility while publicly addressing security concerns.”
The complete findings of this report are immediately available to JupiterResearch clients online at http://www.jupiterresearch.com. For details on JupiterResearch’s methodology, visit http://www.jupiterresearch.com/bin/item.pl/methodology or email firstname.lastname@example.org to request a detailed methodology statement. For additional information on this report, JupiterResearch’s Payments & Transactions Service, visit http://www.jupiterresearch.com or contact Kieran Kelly, Senior Vice President of Global Sales and Client Service, at 1-800-481-1212 or email@example.com.
JupiterResearch provides unbiased research, analysis and advice, backed by proprietary data, to help companies profit from the impact of the Internet and emerging consumer technologies on their business. The company helps online businesses make critical decisions about technology selection, spending, staffing, and Web site effectiveness; advises consumer-facing companies with online advertising, marketing, and customer service strategies to understand, attract, convert and retain customers; and guides technology vendors and service providers on market opportunity, positioning, product definition, and pricing. JupiterResearch is headquartered in New York City and has offices throughout the US and Europe. For more information, visit http://www.jupiterresearch.com. JupiterResearch is a division of JupiterKagan, Inc.
About JupiterKagan, Inc.
JupiterKagan, Inc. was formed in 2006 from the merger of JupiterResearch and Kagan Research, two companies providing thought leadership, research and advice in the domain of the media and telecommunications, Internet, and emerging consumer technologies. The company’s deliverables include continuous information services (available by subscription), research reports, data, inquiries with research analysts, appraisals, litigation support and consulting. JupiterKagan operates from six offices in the United States, United Kingdom, France and Germany. For more information, visit http://www.jupiterkagan.com.
Vic Beck or Courtney O’Regan