Juniper Research has found that the value of QR code payments in APAC will grow by 300% by 2029; up from $290bn this year.
APAC continues to grow at twice the rate of Europe and North America.
The study shows countries including Vietnam, Indonesia and the Philippines are leading this growth. QR code payments, powered by wallets or account-to-account (A2A) payments, will heavily displace cash use in these nations; presenting a key opportunity for digital payments providers.
Near-field communication (NFC) technology is gaining traction in more developed markets; however, Juniper Research expects that NFC will fail to challenge QR codes in Southeast Asia.
High infrastructure costs and low card penetration mean that NFC payments create poor market prospects; with QR being well placed to lead payment digitalisation efforts. QR codes only require a smartphone or terminal to either scan or display a code – representing a very low barrier to entry.
Research Author Daniel Bedford said: “One key limitation of QR code payments is the lack of interoperability when compared with cards, which use universal standards. To scale prospects in Asia, local wallets must collaborate on standards to fully realise the potential of digital payments.”
Juniper Research identifies initiatives such as Alipay+ as boosting interoperability of wallet-based payments – but says far greater efforts are required to enable both consumers and merchants to properly capitalise on digital payments growth.
