Digital commerce transactions are forecasted to pass one trillion globally by 2024, driven by a surge in NFC payments and digital ticketing, a new study by Juniper Research has revealed.
The new study, which covers digital money transfer, digital and physical goods purchases, digital ticketing purchases, banking, NFC payments, QR code payments and bill payments, found the strongest growth will be in three markets. NFC payments, which is expected to show 30% growth, digital ticketing (19%) and physical goods (12%). It suggests that by next year, digital commerce transaction volumes will rise from 966 billion to 1.08 trillion globally, representing a strong 12% growth in a single year.
NFC payments are surging; boosted by increasing contactless acceptance, particularly within transit. The move to open-loop payment systems within ticketing has had an important network effect; boosting awareness of contactless payments among potential users and increasing usage within markets that previously lagged behind, such as the US and Germany.
Speaking on the findings, research author Nick Maynard said: “The shift towards open-loop payments within ticketing has now begun to reach more remote areas, becoming the default payment method in many markets. We anticipate this momentum to boost contactless payments overall, and also increase open-loop adoption in other areas, such as for EV charging.”
The research also identified the impact of the rising cost of living on disposable income and how digital commerce vendors need to differentiate themselves to maintain growth. As such, it recommends that vendors in highly competitive markets, such as money transfer, focus on reducing the cost of payments as the key differentiator in the current climate.
