A new study from Juniper Research has predicted that the global spend using QR code payments will reach over $3 trillion by 2025; rising from $2.4 trillion in 2022. This growth of 25% will be driven by the increasing focus on improving the level of financial inclusion in developing regions and providing alternatives to established payment methods in developed regions.
The new research, QR Code Payments: Key Opportunities, Competitor Leaderboard & Marketing Forecasts 2022-2026, identified combined loyalty and payment services via a single QR code as a key strategy for increasing adoption. It predicts that loyalty schemes will encourage repeat use and foster consumer trust in QR codes for payments.
Alipay Tops Juniper Research Competitor Leaderboard
The research reviewed the top 15 QR code payments vendors in the market and evaluated the key factors that led to their respective success. The top 5 vendors were ranked as below:
3. WeChat Pay
4. Google Pay
5. UnionPay International
Juniper Research has ranked Alipay as the leader in QR code payments, having built upon its early-mover advantage to create a portfolio of strong features, including loyalty schemes, online payments, and a food delivery service in the QR space. The report suggests that competitors emulate Alipay’s strategy to create a valuable ecosystem that revolves around QR code payments capabilities, such as loyalty schemes.
National Schemes to Boost QR Growth
The report found that the prospects for adoption and growth are stronger in markets with national schemes in place, due to incentives that promote ease of use for consumers; with increased interoperability being a major enabling factor. In particular, the research found that in India, the transaction value of QR code payments will increase from $62 billion in 2022, to $125 billion in 2026, driven by its national QR code standard and reduced cash usage. Accordingly, we recommend that vendors looking to expand internationally focus on markets with established national schemes.
Mastercard And OPay Announce Partenership Deal
Fintech giants, Mastercard and Opay have announced a partnership deal to foster a global payment ecosystem to boost digital commerce in Middle East Africa and Africa at large.
This comes on the heels of the partnership deal Mastercard signed with Coinbase a couple of months ago to enable payments in the NFT marketplace.
Investors King gathered that the partnership with Mastercard is to simplify users’ experience in the NFT marketplace by allowing millions of people access the Coinbase to mint, purchase, showcase, and discover NFTs. Mastercard has said all the NFT-related transactions would be classified as ‘digital goods’.
This collaboration is the latest step in Mastercard’s emerging market strategy, which involves the technology company collaborating with fast-growing Fintechs like OPay to broaden access to digital transactions, encourage a variety of leisure amenities, develop new financial inclusion trajectories, and endorse the next formation of apps.
Customers are actively asking for a single platform that allows them to do numerous daily tasks more easily, such as sending and receiving money, ordering meals and groceries, scheduling transportation, lending, investing, and putting products for sale.
Customers of OPay will be able to pay on worldwide web platforms using Mastercard’s secure virtual payment system, which is linked to the OPay wallet.
With or without a bank account, OPay customers will benefit from a superior digital experience for a variety of lifestyle services and new digital commerce options.
In addition to enabling digital commerce, the two companies will collaborate to develop solutions that will position OPay at the forefront of financial services in the areas they serve.
Executive Vice President for Market Development, Mastercard EEMEA, Amnah Ajmal, said: “At Mastercard, our innovation strategy is rooted in partnerships to support inclusion at scale. Our partnership with OPay demonstrates our commitment to supporting payments providers across the world to create an interconnected global payments ecosystem that benefits an array of consumers with unique needs.”
CEO of OPay, Yahui Zhou, said: “As the leading fintech in the Middle East and Africa, we are delighted to be partnering with Mastercard as we continue on our journey to promote financial inclusion, helping to open up the global economy to more consumers and businesses across Middle East and Africa.”
Skaleet and Mobiblanc Announce Partnership for a Cutting-edge Technology to Serve Banks Across Africa
Skaleet, an international fintech providing a next-generation Core Banking Platform (CBP), has partnered today with Mobiblanc, an Agile Digital Services Entreprise (ESN), to offer turnkey solutions to financial institutions across Africa. The partnership will ensure that financial institutions have the capacities to launch new digital and innovative financial solutions that they can provide to their customers, whether businesses or individuals.
Mobiblanc, based in Morocco and Tunisia, is a leading player in North and West African markets entirely devoted to digital solutions. With a talented and dynamic team, Mobiblanc delivers an efficient and effective consulting and integration service for a wide range of clients.
Skaleet enables retail banks and financial institutions to launch new banking products and services for their customers at a competitive price. Through its open, modular, and flexible Core banking Platform, Skaleet offers innovative and scalable banking solutions that are built end-to-end and tailored to each customer.
The digital marketplace is continually, and rapidly, developing and evolving and the partnership between Skaleet and Mobiblanc enables financial institutions to ensure clients stay at the forefront with innovative and cutting-edge technology. Providing the best service and advice to clients, Skaleet and Mobiblanc are able to respond quickly to the digital evolution of banking and financial services with innovative and agile solutions that are competitively priced.
Yves Eonnet, chairman and co-founder of Skaleet said, “Today, it is essential for financial institutions to be able to innovate quickly and adapt to change. The ecosystem we have built relies on expert partners who are aware of this challenge and can find solutions. We quickly saw a cultural, technological and business fit between our two organizations and are delighted to have partnered with Mobiblanc. The partnership will enable us to further expand our offering and add value to our customers across Africa.”
Youssef El Alaoui, co-founder of Mobiblanc, added, “This partnership confirms our strategic orientation to support the digital transformation of the financial sector. We share the ambition with Skaleet to offer integration of innovative solutions with cutting-edge, technological expertise in order to bring added value to our partners and respond to the new business requirement of the sector.”
Both Skaleet and Mobiblanc are committed to continue innovating and creating new modules and functionalities to reshape the banking and financial ecosystem in favour of a formal, inclusive and sustainable development of the African continent.
Skaleet and Mobiblanc will participate at Africa Pay & ID Expo 2022 (APIDE), 26-28 May 2022, Marrakech, Morocco.
Carrier Billing Spend for Digital Goods to Exceed $74 Billion in 2026
A new study from Juniper Research has found that the value of end-user spend on digital goods via carrier billing will exceed $74 billion by 2026; up from $54 billion in 2022. This growth of over 37% reflects the increasing relevance of carrier billing as an option for digital commerce spend. Direct carrier billing involves users charging payments for digital and physical goods to their mobile phone bill.
The new research, Carrier Billing: Opportunities, Challenges & Market Forecasts 2022-2026, found that gaming spend will account for just over 50% of digital goods spend via carrier billing in 2026. This dominance will be driven by accelerating monetisation strategies, including 5G cloud gaming and gaming subscription models. Carrier billing vendors must prioritise partnerships with leading gaming platforms, including emerging cloud gaming players, in order to best serve this market.
For more insights, download the free whitepaper: Carrier Billing ~ Leveraging the 5G Opportunity
Digital Goods – The $11 Billion Carrier Billing Opportunity
The research found that operator-billed carrier billing revenue attributable to digital goods will reach $11 billion globally in 2026; up from $8 billion in 2022. The research identified the high costs per transaction as a limiting factor for carrier billing payments versus card and digital wallet payments, but identified operator reach as being a compelling factor.
Research co-author Nick Maynard explained: “In the face of a rapidly accelerating digital transformation within payments, operators can be in the driver’s seat for reaching potential users, given their access to existing subscribers. Leveraging this subscription base is critical to accessing this potential revenue source.”
Remote Physical Goods Payments – The High-growth Opportunity
The research found that physical goods spend is rising much faster in carrier billing than for digital goods; at a rate of 270% over the next 4 years. While this market is growing from a lower user base, it does represent a significant new opportunity, with spend set to exceed $13 billion globally in 2026. The report recommends targeting cross-border eCommerce vendors for partnerships, given their need to quickly onboard localised payment methods.
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