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.
M-Pesa Rallonge, Financial Inclusion Takes Another Step
M-Pesa Rallonge service, M-Pesa is simultaneously facilitating the process of financial inclusion for all while also improving lives for the better
VodaCash, in partnership with Access Bank, launched its new service M-Pesa Rallonge this Tuesday, December 6th, 2022.
A joint press conference was hosted at Silikin Villag before officially launching the product. Pamela Ilunga, Deputy Managing Director of Vodacom Congo, and Hashim Mukudi, Managing Director of VodaCash, were present along with Access Bank Commercial Director, Adrien Chensham Mbele.
With the M-Pesa Rallonge service, M-Pesa is simultaneously facilitating the process of financial inclusion for all while also improving lives for the better. Currently, over 20% of the daily transactions are canceled due to insufficient balance. For customers, this can be frustrating, especially in emergency situations.
In her opening speech, Pamela Ilunga, Deputy Managing Director of Vodacom Congo, stated, “M-Pesa has been on a journey since its introduction in 2012. Undeniably, M-Pesa has been a solution to financial inclusion for the population of the DRC as well as complementing our different customers’ lifestyles. This has made us the mobile financial institution of choice.”
This partnership with Access Bank allows VodaCash to advance on its mission to provide accessible financial services to remote areas and ensure all Congolese have access to basic necessities. Initially, the focus was providing fundamental services such as domestic money transfers and the purchase of airtime. Over time, M-Pesa has expanded to include services such as forex, paying TV, and bills.
Hashim Mukudi, Managing Director of VodaCash, also announced that “several more collaborations with M-Pesa are coming up, each tailored towards advocating inclusivity and improving customers’ lifestyles, aligning with the 2030 SDGs ‘No poverty’ and ‘reducing equality’. “
Pamela Ilunga added, “At Vodacom, we believe that ‘Together We Can’. We can make an impact on the economy. We can participate in and promote the digital revolution that is currently taking place in the DRC. M-Pesa Rallonge is only the first of several more services we are developing to improve lives and facilitate access to financial services using eco-responsible processes.”
The Deputy Managing Director of Vodacom Congo closed her speech by commending their partner, Access Bank, for sharing the same vision of “responding to the real needs of the Congolese population to financial inclusion and providing a platform that will allow its customers to use this new product.”
Instant Payment Transactions to Surpass 376 Billion Globally by 2027
The number of instant payment transactions to grow by 289% globally exceed 376 billion globally by 2027; increasing from 97 billion in 2022
A new study has found that the number of instant payment transactions will exceed 376 billion globally by 2027; increasing from 97 billion in 2022, a 289% growth.
The study predicts that an increased roll-out of instant cross-border payment schemes in multiple countries will drive this growth by enabling businesses and consumers to benefit from greater speed and efficiency.
This efficiency is gained by processing payments over instant payment rails, which provide time and cost savings, while also offering greater transparency over transactions to stakeholders than traditional payment rails.
An instant payment is any payment outside of a card network that is capable of receiving funds in 10 seconds or under.
Regulators to Play Key Role in Cross-border Instant Payments
The report forecasts that cross-border transactions will grow at a faster rate than domestic transactions globally. It anticipates that cross-border transactions will rise from 631 million payments globally in 2022 to over 6 billion in 2027. The creation of instant payment schemes by international bodies, such as the EU, and an increase of bilateral agreements between these bodies will be key drivers of growth over the next five years.
These bodies will be essential in creating cross-border instant payment networks, as they have the capital and influence to connect disparate payment schemes across different geographical regions in order to maximise the value proposition of instant payments. In turn, the report recommends that regulators increase partnerships with international bodies to broaden payment schemes and expand access to instant payment services.
Greater Efficiency to Drive Business Adoption
Additionally, the report predicts that the increased time and cost efficiencies, and the improved cashflow management of using instant payments will be primary factors in influencing businesses to adopt. This will contribute to the total value of instant payment transactions rising from $6 trillion this year, to $33 trillion in 2027.
M-Pesa Launches M-Pesa Rallonge
Vodacash is launching its new service M-Pesa Rallonge in the DRC to allow customers to financial assistance from their cell phones.
M-Pesa Rallonge is a new service dedicated to M-Pesa users with zero or insufficient balances. Users will be able to take advantage of this service to get an instant overdraft and top up their balance to make a transaction, such as:
- Send money without withdrawal fees;
- Purchase Credit for oneself;
- Purchase Packages for oneself;
- Purchasing Products;
- Resubscription to cable channels such as Canal+, Startimes, Easy TV, and Bleusat, except DStv, which only supports payment in dollars.
According to Hashim Mukudi, Managing Director of Vodacash, “M-Pesa continues to provide the DRC with the solutions that can benefit the population and promote digital and financial inclusion. Together we can drive economic development and provide services to those in dire need of access to financial services in rural and remote areas.”
Customers with an active premium account who make regular transactions via M-Pesa will be eligible for the offer. The overdraft is currently only available in Congolese francs, and its limit ranges from 50 to 100 thousand FC, subject to interest charges and penalties for violating the terms and conditions.
M-Pesa is the market leader in the Central and East African regions and the DRC. With a wide range of value-added products and services tailored to the purchasing power of the Congolese population, M-Pesa is the largest mobile money brand with a substantial 61% market share, a 10% contribution to GDP, and over 6 million customers.
M-Pesa also has the largest distribution coverage to ensure service availability to beneficiaries and a rich ecosystem of products to encourage customers to make more digital transactions.
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