The COVID-19 has given contactless payments technology the boost it needed for widespread global adoption, as consumers worldwide started avoiding cash in fear of spreading the virus.
According to data presented by BuyShares, contactless payments are expected to continue rising worldwide and hit a $665bn transaction value in 2021. The impressive growth is set to continue in the following years, with the total value of contactless transactions doubling up and reaching over $1.6trn by 2024.
China and the Far East to Generate $850B Worth of Contactless Transactions
Contactless payments are a quick, secure, and easy way to purchase products or services by simply holding a card or smartphone up to a payment reader for the transaction to proceed.
These tap-and-go payments became especially appealing to consumers amid the pandemic, allowing them to pay for goods and services without the need to swipe, enter a personal identification number, or sign for a transaction. Consumers can also make contactless payments by connecting their credit cards with a payment app like Apple Pay or Google Pay on their smartphone or smartwatch.
Over the years, this payment method became very popular in China, Australia, Canada, South Korea, and the United Kingdom. However, the COVID-19 fuelled the growth of contactless transactions among American consumers as well.
Last year, the global contactless payments market was worth $482.7bn, revealed the Statista and Juniper Research data. As the number of people choosing tap-and-go payments continues rising, this figure is expected to jump by another 40% in 2021. Statistics show the following years are set to witness a surge in contactless payments, with their value rising by another $1 trillion by 2024.
China and the Far East is the leading region for this type of transactions, generating more than half of all contactless payments globally. In 2021, countries from the region are expected to generate $313.3bn worth of transactions, 38% more than a year ago. By 2024, this figure is forecast to surge by 170% and hit an $849.1bn value.
Contactless Transactions in Latin America to Surge by 851% in Three Years
As the second-largest market globally, North America is expected to generate $194.2bn worth of contactless transactions in 2021, up from $156.5bn a year ago. Statistics indicate this payment method is expected to gain popularity among American consumers in years to come and hit almost $310bn value by 2024.
Last year, the European contactless payments market was worth $63.5bn. This figure is expected to triple and hit $224.1bn in the next three years.
However, Latin America is set to witness the most impressive growth of tap-and-go payments in this period.
Before the pandemic, contactless payments In Latin America were still emerging. Just a handful of issuers launched contactless cards, with several banks which developed contactless mobile wallets. However, the user uptake was minimal. The Americas Market Intelligence Survey revealed that in 2019, more than half of Latin American consumers were underbanked, and up to 90% of retail payments still took place in cash. However, the COVID-19 changed that.
In 2020, the Latin American contactless payments market was worth $4.6bn. Statistics show the total value of transactions is expected to jump by 165% YoY and hit $12.2bn in 2021. By 2024, this figure is forecast to soar by 851% and hit a $116.1bn value.
Fintech Company, Grey, Unveils New Look to Support its Global Expansion Strategy
Grey, a leading cross-border fintech company, has embarked on a significant global brand rebranding initiative, revealing a fresh logo and website design.
This strategic move aligns with the company’s dynamic plans to expand its footprint in the global market.
The company’s transformation was unveiled on its social media platforms on Monday, November 27, 2023. Grey aims to leverage this fresh identity to reach a broader audience and solidify its international presence. The updated brand assets visually represent Grey’s commitment to innovation, excellence, and global connectivity.
The rebranding initiative follows closely on the heels of Grey celebrating a milestone achievement of surpassing 500,000 users. The company’s rapid growth and expanding user base have spurred this bold step towards rebranding, symbolizing success and underlining its dedication to remaining at the forefront of global fintech innovation. Furthermore, the previous logo was not usable in some foreign markets due to trademark conflicts with another company.
Idee Obong, The CEO and founder of Grey, shared insights into the rationale behind the rebranding, stating, “As we chart our course toward serving a global audience, we recognized the need for trademarks and related processes. We identified similarities with existing marks during this evaluation, prompting a deliberate rebrand. The new logo and website signify our forward trajectory, emphasizing global connectivity and our commitment to creating a more interconnected world. Our focus remains on being people-centric and cultivating a lasting community.”
Grey’s brand evolution is occurring at a crucial juncture for the fintech industry, which is positioned for significant opportunities despite recent economic uncertainties. The fintech sector has faced challenges in the past year; notwithstanding, Grey has rapidly scaled, adeptly responding to the heightened demand for its services.
The company has also established key partnerships across both B2B and B2C sectors across Africa over the past months, solidifying its reputation as a trusted and reliable cross-border payments company.
Femi Aghedo, Co-founder of Grey, emphasized the strategic timing of the brand evolution, stating, “The timing simply felt right to evolve our brand. Our growth and evolution as a business needed to be reflected tangibly. We are dedicated to ongoing innovation, adapting our services to meet the dynamic needs of our customers. Our core mission is to provide seamless and secure cross-border payment solutions, empowering businesses and individuals in the global economy. We eagerly anticipate the future of fintech and the opportunities it presents for us to impact the industry positively.”
Furthermore, customers can expect a more innovative and interconnected user experience when engaging on their platforms. As Grey ventures into this exciting new chapter, the team remains committed to providing cutting-edge and secure cross-border payment solutions, fostering global connectivity, and contributing to the evolving landscape of the fintech industry.
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Kenyan Court Clears Flutterwave of Money Laundering and Fraud Allegations
African fintech firm Flutterwave can breathe a sigh of relief as the high court in Kenya has granted the country’s Asset Recovery Agency (ARA) permission to withdraw its second and only remaining case against the payments company.
The withdrawal of the case by the ARA follows further investigations, which established that Flutterwave was not involved in criminal activities, including money laundering and fraud.
The latest development concludes a legal saga that began when the ARA initially froze $52.5 million in Flutterwave’s accounts and sought to establish that these funds were proceeds of crime. The case was closed in March, with the release of the $52.5 million, after the ARA withdrew its initial case.
This legal victory is significant for Flutterwave, which has been in the process of acquiring a payments service provider and remittances license from the Central Bank of Kenya. Last year, the Central Bank of Kenya had flagged Flutterwave for operating without the required license.
The judge’s ruling also highlighted the negligence and recklessness of the ARA in commencing legal proceedings without completing its investigations, leading to potential civil or tortious liabilities falling solely on the agency’s director and the investigator rather than being imposed on the Kenyan government or public funds.
This development comes as Flutterwave intensifies its efforts to expand its fintech services in Kenya and other markets, offering payment solutions for businesses and individuals across Africa.
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