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Study: Digital payments see 20 percent boost globally Print Email
Written by Taylor Berglund   
Monday, 21 March 2016 12:24 PM America/New_York

juniper-research-logoA new study from Juniper Research has found the annual transaction value of online, mobile and contactless payments will reach $3.6 trillion this year. This total is up from $3 trillion in 2015, resulting in a 20 percent increase.

The new study, “Digital Payment Strategies: Online, Mobile & Contactless 2016-2020,” argues that the recent surge in contactless payments would continue, fueled by further scaling up of infrastructure rollout and increased card payment limits in key markets. The research also anticipates that while cards will account for 90 percent of contactless payments over the next five years, the deployment of NFC (Near Field Communications) payments by high-profile players such as Apple and Samsung would increase consumer awareness and usage of smartphones to fulfill transactions.

The research also highlights the growing presence of social media companies in the eRetail space. Several leading companies, including Facebook, Pinterest and Instagram, have already introduced ‘buy’ buttons, allowing users to make purchases directly from the companies’ mobile apps. The study suggests that digital eCommerce on social media activity will increasingly extend into the P2P (Person to Person) payments space.

According to research author Dr. Windsor Holden, “Facebook has already rolled out a P2P service linked to its Messenger service in the US, and we would expect additional deployments in other core markets over the next year or so.”

The research also forecasts that mobile wallet adoption will continue to accelerate in developing markets, with nearly 20 countries across Asia and Sub-Saharan Africa now having more mobile money accounts than bank accounts. As wallet users reach a critical mass in these markets, service providers will likely introduce more sophisticated payment services, such as loans and micro-insurance, thereby hastening the drive toward financial inclusivity for the unbanked.