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Data for today’s episode is provided by Mercator Advisory Group’s report – QR Code Developments May Disrupt the Disrupters.
QR code payments are great for developing countries – how about Manhattan?
- QR codes offer a low-cost merchant acceptance platform that helps identify untaxed sellers
- Central banks encourage QR codes to fund bank accounts. Worldwide, 1.7 billion adults are unbanked
- It’s unlikely that QR code usage will gain traction in mature markets like the U.S., U.K. & Canada
- In mature markets like the U.K., NFC payments made up 19% of transactions in 2018. 25% by 2020.
- In the U.S., adoption of NFC is slower, but the market is 10x larger than the U.K. and the inflection point will be in 2022
- However, retailers like CVS, 7-Eleven, Whole Foods, Starbucks & Target have begun accepting QR codes
- If, for no other reason, to accommodate the 6 million tourists from China & Japan alone
Better authentication controls, centralized clearance, and network moves may change this fast-growing payment acceptance technology.
Fintech retailers, who built their business on inexpensive payment technologies, will see changes as QR acceptance matures.