QR code payments are poised for explosive growth, with global transaction value expected to surge by 50% from $5.4 trillion in 2025, according to a new market study.
QR Code payments set for 50% growth
This remarkable expansion is being driven by the standardisation of national QR payment schemes, the rise of account-to-account (A2A) transactions and the increasing financial inclusion of small businesses.
However, competition in the contactless payments space is set to intensify, as Apple’s decision to allow third-party access to Near Field Communication (NFC) technology threatens to challenge QR codes’ dominance in certain markets.
What’s Driving the Boom?
The widespread adoption of QR code payments is fuelled by accessibility, affordability and government-backed standardisation.
Many countries have launched national QR payment frameworks, creating interoperable ecosystems that allow businesses and consumers to transact seamlessly across financial institutions and digital wallets.
Meanwhile, A2A payments, which bypass card networks by directly linking bank accounts, are gaining popularity.
QR codes are playing a vital role in this transformation, enabling instant payments with lower fees compared to traditional card-based transactions.
Regional Dynamics:
- Developing markets, where smartphone penetration is high but card infrastructure is limited, are expected to see the fastest growth in QR transactions.
- In North America and Europe, Apple’s NFC policy shift may lead to increased competition from contactless card payments and mobile wallets like Apple Pay and Google Pay.
Despite this, the study suggests that QR codes will maintain their relevance due to their cost-effectiveness and broad compatibility across devices.
QR Codes vs. NFC: Key Competitive Advantages
While NFC-based payments have gained traction in developed markets, QR codes remain a preferred alternative due to two critical advantages:
- Lower Operational Costs
- QR payment solutions require only a printed code or a simple mobile interface, eliminating the need for expensive point-of-sale (POS) terminals.
- This makes QR codes ideal for small businesses, street vendors, gig economy workers and micro-merchants.
- Universal Compatibility
- Unlike NFC, which requires specialised chip-enabled smartphones and POS systems, QR codes work on any smartphone with a camera – ensuring wider accessibility.
According to Daniel Bedford, the report’s author, the lower entry costs associated with QR codes are pivotal for driving financial inclusion, particularly in emerging economies.
To fully leverage the increasing demand for QR-based payments, vendors must focus on solutions tailored to small businesses and underserved markets.
The study highlights the importance of customisation, suggesting that payment providers should develop flexible, low-cost implementations.
While competition in the digital payments landscape is heating up, QR codes continue to offer a powerful combination of affordability, accessibility and ease of use.
Their rapid adoption across Asia, Latin America and Africa has already demonstrated their potential to revolutionise financial transactions, and the next few years will likely see their influence grow further.
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