According to a recent FMI report, the QR code payment market size is predicted to reach US$ 11.67 billion in 2023. The adoption of QR code payments is predicted to surpass US$ 55.60 billion by 2033, exhibiting a CAGR of 16.9% between 2023 and 2033.
The market is a fast-expanding area of the digital payments sector, driven by the rising use of smartphones, e-commerce, and the simplicity and security that QR code payments provide. In today’s world, QR codes are a common sight, showing up on everything from product packaging to billboards to restaurant menus. The convenience of accepting payments through a quick code scan is luring more customers and business owners alike.
QR codes are simple to incorporate into current point-of-sale systems. This enables businesses to take QR code payments without having to spend money on pricey new equipment. The ability to increase security and efficiency in digital transactions is a significant opportunity in the QR code payment industry. The payment process can be streamlined and errors can be reduced by using QR.
QR codes can also be readily encrypted to prevent fraud and unauthorized access. Moreover, QR code payments can be quickly connected with other electronic payment methods, including mobile wallets, to produce a smooth and secure payment experience. In response to the increased need for quick and secure digital payment methods brought on by e-commerce and online shopping, QR codes have developed as a vital technology.
Trends in the QR code payment market are largely focused on simplifying and streamlining the payment process for consumers and merchants alike. This includes initiatives to increase the acceptance, usability, and security of QR code payments. For instance, there has been a push to standardize QR code formats to clear up imprecision and improve compatibility across various payment systems.
· Given the widespread use of mobile payments in nations like China, Japan, and India, the Asia Pacific region dominates the QR code payment market.
· The expansion of e-commerce and mobile payment options has made North America a profitable QR code payment market after Asia Pacific.
· In China, QR code payments are accepted widely and have taken over an increasingly popular form of payment, whilst, in the United States, the retail sector is seeing a rise in QR code payments.
· The QR code payment market in India is growing rapidly given the government’s push for digital payments and the increased smartphone penetration.
· Several companies, notably small street sellers, have been using QR code payments in Japan, where the technology has a high acceptance rate.
Market players are heavily spending on research and development to advance their technology and gain market dominance in the QR code payment industry. To satisfy the rising demand for contactless payment choices, they are actively creating and introducing new solutions. Although certain key companies, including Square and PayPal, are adding QR code payment features to their current payment platforms, others, such as Alipay and WeChat Payare increasing their worldwide reach. Additionally, they are focusing on offering personalized and user-friendly services to attract and retain customers.
· Alipay unveiled a new “Smart Plan” function in February 2022 that enables customers to make installment payments for products using QR codes. By lowering the cost for consumers, this feature aims to increase expenditure.
· WeChat Pay introduced a new function in December 2021 that enables users to divide costs and invoices with friends and family using QR codes. WeChat Pay BuddyPay is a tool that promises to make it simpler for users to manage their shared spending.
These insights are based on a report on QR Code Payment Market by Future Market Insights