Despite the fact card and online payments may look very fast to us, they are not taking place instantly. Indeed, instant payments are transactions that are completed within ten seconds. This new payment innovation, which is currently led by Europe, will reach $18 trillion in 2025; generating a growth of over 500%. This represents 17% of all B2B and consumer digital money transfer and banking payments by value in 2025. It is therefore safe to say that instant payments have the potential to disrupt the current payments landscape.
A key new development in the IoV (Internet of Vehicles) is the introduction of payments to the connected vehicles concept. Indeed, a new study from Juniper Research has found that the value of in-vehicle payments, where a payment is made via embedded vehicle systems, will reach $86 billion in 2025, up from just $543 million in 2020. This dramatic growth will be driven by increased partnerships which are improving the availability of services, particularly in the fuel and smart parking segments.
During lockdown periods, consumer spend on sextech devices increased to simulate intimacy, without breaching social distancing measures. As a result, a new study from Juniper Research has found that there will be over 36 million connected sextech devices in use in 2020; rising from 19 million in 2019 and representing a growth of 87%.
Over recent years, developments in advanced cloud technology have turned the idea of cloud gaming from a potentially significant new model within the industry into a reality. Indeed, a new report from Juniper Research found that the video games industry will exceed $200 billion in value in 2023; growing from an expected $155 billion in 2020. And it will be mobile and cloud gaming to lead this growth, as the market shifts further towards recurring revenue, and purchase revenue declines by 5% over that period.
Smart checkout technologies provide much simpler user experiences by removing traditional checkouts; embracing a ‘just walk out’ approach. We predict that the value of transactions processed by smart checkout technologies, where the fixed checkout process is replaced by a frictionless model, will reach $387 billion in 2025, up from just $2 billion in 2020. The rapid growth will be driven by retailers seeking sustainable business models.
A new study from Juniper Research has found that the number of vehicles with embedded connectivity will reach 200 million globally by 2025; rising from 110 million in 2020. As a result, we predict both 5G adoption and the incorporation of embedded eSIMS will be a catalyst for this growth; making operators some of the main beneficiaries of this new trend.
A new study from Juniper Research has found that the long-lasting economic impact of the COVID-19 pandemic means that cross-border values will only exceed 2019 values by 2022; highlighting the effect that this major economic disruption will have on businesses around the world. As a result, we predict slow growth in B2B Cross-border Payments; reaching $35 trillion in 2022; representing a 30% growth from a COVID-related low of $27 trillion in 2020.
SMS traffic fraud is set to see a dramatic decrease by 75% over the forecast period, from 539 billion messages in 2020 to 138 billion in 2025. By contrast, operator business revenue traffic will reach $50 billion in 2025; increasing from $39.6 billion in 2020. This represents an overall growth of 26%; driven by the reduction in illegitimate traffic due to the implementation of SMS firewalls.
Digital subscription services is set to increase the total spend of Direct Carrier Billing, as the overall value will reach $100 billion for the first time by 2025; rising from $37 billion in 2020. The increasing shift to subscription-based models, such as games, video streaming and music, will be key to the market; realising a substantial growth rate of 172% over the next five years.
The CPaaS (Communications Platform-as-a-service) market is set to increase over the next five years, as the total value will reach $25 billion in 2025; rising from $7 billion this year.