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Digital Payments Set to Reach $4.7 Trillion by 2019

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Digital is the way to go

Digital payments are expected to rise to a whopping $4.7 trillion by 2019 according to new research released by Juniper Research. This is a near doubling of the 2014 forecast of $2.5 trillion in digital payments.

The report, which bore the incredibly catchy title of Digital Payments Strategies Online, Mobile & Contactless 2014 – 2019, showed that the largest portion of these sales will come through mobile devices. This means that there will be a growth in eCommerce through mobile devices, purchase of physical goods through NFC mobile payments and remote payment systems.

Juniper Research also goes on to predict that consumers will abandon their laptops, opting for tablets as their device of choice, seeing an organic growth in transaction volumes as a result.

Interestingly, while the report doesn’t mention Bitcoin or bitcoins by name, it points out to hosting providers that they really need to be able to accommodate multiple-geographic compliance, and have an awareness of alternative digital methods of payment. Sound familiar? Adopting bitcoin means ease of payments across borders as it’s can be accepted in any country that has Internet access, which is very handy for anyone looking to expand their market.

It also mentions that companies should embrace and adapt “contactless payments,” meaning that there are more reasons to keep an eye on cryptocurrencies.

“While we are now seeing contactless transactions scaling up in markets such as Australia, Poland and the UK, almost all current consumer usage is via the card. However, with banks increasingly attracted to an NFC model in which they have full control of the customer, then we may well see some high-profile deployments in the medium term,” notes report author Windsor Holden.

Still, that surely can’t account for a near doubling of growth in just 5 years?

And you’re right, it seems that the digital explosion will take place in emerging markets, where digital is the preferred method by both merchants and consumers due to it’s speed and ease with mobiles. It’s also worth noting that in these areas is where Bitcoin growth is rife too, with the global market being immensely lucrative there.

2014 is also set to to be the first year that mobile payments outstrip those of desktop and laptop payments, at least that’s according to the report.

[Image: Luke Wroblewski - Flickr]

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