While it has not become as much of a force in the U.S. as in other parts of the world, mobile payments via QR code are growing in the U.S. and globally, according to a new report.
U.K.-based consultancy Juniper Research predicts the number of consumers who use QR codes to make payments using mobile devices will rise to 2.2 billion in 2025, from 1.5 billion in 2020. Much of that growth will occur in emerging markets, the report said, but U.S. users will increase 240 percent. PayPal, which began offering QR code-based mobile payments in May, is driving much of the growth in the U.S., the report noted.
While contactless mobile payments using technologies like NFC or Bluetooth are card-present payments, QR codes are classified by payments providers as card not present.
“QR code payments have low acceptance costs versus contactless payments, meaning that they are highly competitive and appealing to retailers in emerging markets, which lack card infrastructure,” said Nick Maynard, one of the report’s authors. “However, the low costs mean that accepting QR codes alongside cards is also viable. Partnerships in developing markets will be critical to driving QR adoption.”