P2P Money Transfers to Drive Digital Payment Growth as Market Approaches $3.9 Trillion in 2017
Online Retail Accounts for Majority of Payments
Hampshire, UK – 2nd
May 2017: A new study by Juniper Research
has found the value of digital payments will approach $3.9 trillion this year, representing an increase of more than 14% on last year’s total. While the bulk of transaction value (55%) will be accounted for by online retail purchases for physical goods, P2P (Person to Person) money transfers will see the largest year-on-year net increase in value ($200 million).
The new research – Digital Payment Strategies: Online, Mobile & Contactless 2017-2021
- argued that the US would see particularly strong growth, with the bank-backed Zelle Network expected to build on its successful debut in 2016 as additional banks come on board.
The research also emphasised that the demonetisation policies employed by India’s government had encouraged a surge in mobile wallet adoption and, with it, sharp increases in both P2P and mobile retail transactions
Wal-Mart Strengthening Online Play
Meanwhile, the research anticipated that the US would see further strong growth in eRetail. Online US sales in 2016 were around 4% ahead of previous Juniper forecasts, thanks in large part to an increased emphasis by traditional bricks-and-mortar retailers in developing a converged online/offline approach. It cited the example of Wal-Mart, which currently realises less than 5% of sales through online channels, seeking to boost its market share through the development of an ‘innovation hub’ to drive retail opportunities.
Bots to transform consumer experience
Furthermore, the research argued that the rise of bots and other natural language interfaces was likely to transform the consumer-facing front end, offering an improved shopper experience. However, according to research author Dr Windsor Holden, the performance of the bot in customer service channels was critical. “Poorly trained bots will issue unhelpful responses, potentially resulting in customer churn away from a given brand or retailer”
, he said.
The complimentary whitepaper, ‘Maximising the Digital Payments Opportunity 2017’
, is available to download from the Juniper website, together with further details of the full research and the attendant Interactive Forecast Excel (IFxl).
Juniper Research is acknowledged as the leading analyst house in the digital commerce and fintech sector, delivering pioneering research into payments, banking and financial services for more than a decade.
For further details please contact Sam Smith, Press Relations
T: +44(0)1256 830002