Monday, April 15, 2024
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    Transportation spend via QR codes to triple by 2028, hitting $17.7bn

    QR code payments in the transportation market could increase by 176% over the next five years, with China, India and Malaysia drivng the uptake of this quick way to pay.

    According to a new study by Juniper Research, this growth is being catalysed by governments’ use of QR payments to foster financial inclusivity, enabling widespread QR code payments acceptance, critical for growth.

    QR code payments allow users to scan a QR code with a payment or wallet app and pay from that wallet or payment app. It makes the process of paying quick and easy and, in theory, can link to any payment tool, including DCB, which is already tipped to play a pivotal role in transport and parking payments.

    Find out more about the latest research, Global QR Code Payments Market 2023-2028, or download a free sample.

    Transport operator interoperability biggest challenge

    The benefits of QR-based payments for transportation are numerous, but the greatest obstacle is the lack of interoperability between transport operators. The most successful markets are those with national QR standards or extensive cultural integration of QR-based payments.

    The report recommends that this model be adopted in other markets; creating coalitions between payment providers and transit authorities, enabling services like tap in-and-out QR codes.

    Can the West replicate this success?

    QR-based payments are sparse across the West relative to the rest of the world, especially so within transportation. However, Stockholm’s public transport agency has accepted QR-based payments across the city’s transport services since 2021, alongside NFC contactless, as Sweden shifts towards a cashless society.
    Despite NFC’s success in western markets, QR codes are used as tickets for transport across many other countries, so there is potential, especially for transport operators that wish to accommodate tourists that primarily use QR-based payments. QR payment vendors in the West should partner with transit operators to foster acceptance for QR payments; emphasising the ease of integration and the potential of value added services like transport discounts through digital wallets, not possible through NFC.

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