CNP to Account for 25% of all Card-Based Transactions by 2018
July 1, 2014
Card-not-present transactions in the U.S. are poised to continue their rapid growth over the next few years. In fact, a new report says, growth of CNP transactions will double card-present purchases to account for a quarter of all card-based transactions within three years. Business Insider said on Friday that CNP transactions (including e-commerce, mobile payment, online bill pay, over-the-phone transactions and others), will grow at an annual rate of 15 percent, reaching more than 27 billion transactions in 2018. By comparison, card-present transactions will grow around 4 percent during the same time period.
Business Insider said the forecast is based on Federal Reserve data, past trends and its tracking of the card payments industry. The company attributes the difference in growth between CNP and card-present transactions to accelerated growth in e-commerce and online bill pay.