Fuelled by frictionless checkout demand, the volume of global e-commerce transactions made via OEM Pay will exceed 30.7 billion by 2026, rising from 4.7 billion in 2022.
OEM Pay allows users to add cards from multiple banks to the wallet application. Moreover, this outstanding growth of 550 percent will be driven by rapidly increasing customer demands of frictionless checkout experiences across multiple e-commerce channels, according to a report by Juniper Research.
Also, OEM Pays to benefit, as alternative payment methods like BNPL (Buy Now Pay Later) are becoming progressively mainstream. E-commerce users are increasingly demanding low-friction checkout processes, which OEM Pays, including Apple Pay and Google Pay, are well placed to offer.
Mobile Contactless Payments Drive Growth in West Europe
An important trend has been found that e-commerce OEM Pay transactions will grow by 516 percent between 2022 and 2026 in West Europe. It identified the region as a leader in the growth of digital wallet use over e-commerce channels, further driving the development of OEM Pay transactions in the region.
However, that growth outside of West Europe will lag, as mobile contactless payments are yet to gain significant traction, according to the report.
Security Features Compelling for Users
There has been an increase in consumer awareness for the enhanced security measures offered by OEM Pay services, such as biometrics and tokenization. These features were found to be helping drive adoption into the mainstream.
A growth of 63 percent for OEM Pay transaction volume globally in the year 2022 has been recorded, largely driven by a greater consumer acceptance and trust of mobile payments throughout the pandemic period, the report further stated.
Experts believe that e-commerce merchants capitalize on this now by ensuring that security processes are consistently robust across all payment methods.