The value of global person to person (P2P) mobile payments is set to increase 40 per cent to $540 billion by end-2017, Juniper Research forecast.
Growth in the segment is predicted alongside a trend of increasing popularity of digital payment methods. The UK-based analyst company predicted the value of digital payments across the world would reach $3.9 trillion in 2017, an increase of 14 per cent year-on-year.
Online purchases of physical goods are expected to make up over half of all funds processed, with 55 per cent likely to come through this channel.
Juniper said the combined value of P2P transfers across all digital channels would see the largest increase in net value, as vendors process $200 million more than 2016.
The company anticipates significant growth in the US due to increased backing from the banking sector, and singled out India as another key growth market, citing government initiatives as a factor.
Rise of the bots
In a research paper Digital Payments Strategies, published earlier this week, Juniper also said growth of customer service bots – which have been the subject of a number of announcements so far this year – would improve shopper experience on digital channels.
Windsor Holden, head of consultancy and forecasting at Juniper Research, warned companies must ensure their bots are properly configured: “Poorly trained bots will issue unhelpful responses, potentially resulting in customer churn away from a given brand or retailer.”