Digital payments to double, reaching $4.7T by 2019, says Juniper
Digital payments--mobile, online and contactless--are forecast to almost double in transaction value by 2019, according to the latest data from Juniper Research.
Digital payments will reach $4.7 trillion by 2019, up from $2.5 trillion in 2014.
Much of that growth will be fueled by emerging markets, such as China, with digital retailer Alibaba accounting for 20 percent of global e-retail value worldwide last year.
Combined transactions on smartphones and tablets are expected to exceed those on desktop for the first time in 2014. Tablets in particular are the chosen media for users migrating from PCs, says Juniper. Mobile transactions are expected to get a boost from near field communications (NFC) services based on host card emulation, which involves the presentation of a virtual and exact representation of a smart card using only software.
"From a physical goods perspective, the dramatic growth in purchases via tablets means that in some markets a significant proportion of all online purchases conducted via these devices," explains Juniper in a white paper.
"There has been a marked migration of e-retail from desktop/laptop to tablet, as part of the 'couch commerce' revolution. When this is combined with the consumer 'showrooming' trend, whereby consumers browse retail prices in-store on their smartphones and then return home to fulfil the purchase on their tablets, the increased importance of the tablet in this regards becomes clear," the white paper adds.
In the U.S. market, purchases using tablets accounts for 25 percent of all physical goods transactions, which Juniper forecasts will rise to 63 percent in 2019.
Juniper analyst and report author Windsor Holden concludes: "While we are now seeing contactless transactions scaling up in markets such as Australia, Poland and the U.K., almost all current consumer usage is via the card. However, with banks increasingly attracted to an NFC model in which they have full control of the customer, then we may well see some high-profile deployments in the medium term."
- see Juniper's release
- check out the white paper (reg. req.)
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