TRANSPORTATION SPEND VIA QR CODES WILL REACH $17.7 BN BY 2028 :Juniper Research
According to a recent study by Juniper Research, spending on transportation through QR codes is projected to nearly triple by 2028, reaching a total of $17.7 billion. This significant growth is driven by the standardization of payment methods, which is promoting the widespread adoption of QR code payments in the transportation industry.
The study identifies China, India, and Malaysia as the market leaders in this trend. Governments in these countries are leveraging QR payments to enhance financial inclusivity and facilitate the acceptance of QR code payments on a large scale, which is crucial for driving growth in the industry.
However, the report highlights that the lack of interoperability among transport operators remains a major challenge. Successful markets in this area have established national QR standards or achieved extensive cultural integration of QR-based payments. The report suggests that other markets should adopt similar approaches by forming alliances between payment providers and transit authorities, enabling services such as tap in-and-out QR codes.
While QR-based payments are not yet widely adopted in the Western countries, particularly in the transportation sector, Stockholm's public transport agency has been accepting QR-based payments since 2021, alongside NFC contactless payments, as Sweden moves towards a cashless society.
Although NFC technology has been successful in Western markets, QR codes are frequently used as tickets for transportation in many other countries. This presents potential opportunities, especially for transport operators seeking to accommodate tourists who primarily use QR-based payments. QR payment providers in the West should collaborate with transit operators to promote the acceptance of QR payments. They should emphasize the ease of integration and the added value of services such as transportation discounts through digital wallets, which are not possible with NFC technology.
