QR code payments in the transportation market will increase by 176% over the next five years

QR code payments in the transportation market will increase by 176% over the next five years, as per Juniper Research.

Transportation spend via QR codes to almost triple by 2028, reaching $17.7 billion, as payment standardization drives adoption.

Hampshire, UK, October 18, 2023 – A new study from Juniper Research, the foremost experts in fintech & payment markets, has found the value of QR code payments in the transportation market will increase by 176% over the next five years, with China, India, and Malaysia being market leaders.

This growth is being catalyzed by governments’ use of QR payments to foster financial inclusivity, enabling widespread QR code payment acceptance, which is critical for growth.

QR code payments – Operator Interoperability Is 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 and 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 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, emphasizing the ease of integration and the potential of value-added services like transport discounts through digital wallets, not possible through NFC.

The Research Suite

The new market research suite offers the most comprehensive assessment of the QR payments market to date, providing analysis and forecasts of over 12,900 datapoints across 60 countries over five years. It includes a ‘Competitor Leaderboard’ and an examination of current and future market opportunities.

Juniper Research has, for two decades, provided market intelligence and advisory services to the global fintech and payments sector, and is retained by many of the world’s leading fintechs and payments companies.