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Digital Commerce Transactions Expected to Surpass 1 Trillion Mark Worldwide by 2024, Driven by NFC Payments and Online Ticketing Growth

Digital commerce transaction volumes are set to reach 1.08 trillion globally next year, according to a new study by Juniper Research. This represents a 12% growth from this year’s figure of 966 billion. The study covered various aspects of digital commerce, including digital money transfer, digital and physical goods purchases, digital ticketing purchases, banking, NFC payments, QR code payments, and bill payments. The research found that the strongest growth will be seen in three areas: NFC payments (30% growth), digital ticketing (19% growth), and physical goods (12% growth).

One of the key factors driving the growth in NFC payments is the shift to open-loop payment systems in transit. This has not only increased contactless acceptance but also raised awareness of contactless payments among potential users, especially in countries like the US and Germany where adoption was previously lagging. The study predicts that this trend will continue, leading to further growth in contactless payments and the adoption of open-loop systems in other areas, such as electric vehicle charging.

The rising cost of living and reduced disposable income have made it crucial for digital commerce vendors to differentiate themselves in order to sustain growth. The study recommends that vendors in highly competitive markets, such as money transfer, focus on reducing the cost of payments as a key differentiating factor.

In another finding, the study highlights the emerging trend of Banking-as-a-Platform (BaaP) as a way for traditional banks to regain their competitive edge against neobanks. BaaP is an operational business model that enables banks to offer new services to consumers through collaborations with innovative vendors. These services can include embedded insurance, lifestyle offers with leading brands, or access to HR services for small businesses.

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