In 2025, Expect Surge in QR Code Payments Amidst Stagnant Payment Card Prices
As we step into 2025, the landscape of digital payments is set to evolve significantly according to the latest findings from ABI Research. After a challenging year marked by geopolitical conflicts and economic pressures, the shift towards digital payment technologies is both timely and necessary. In their comprehensive report, 101 Technology Trends That Will—and Won't—Shape 2025, ABI analysts have identified key trends in the digital payment sector, primarily the increase in QR code payments. This report highlights the industry's gradual recovery and identifies future expectations that consumers and businesses alike should take note of.
Rising Popularity of QR Code Payments
QR code payment acceptance is poised to expand, owing to its existing popularity in regions such as China and its emerging growth in markets like India. Consumer behavior and increasing digital adoption have paved the way for QR codes to transition from a niche solution to a more mainstream payment method. Major players in the market like PayPal, Stripe, and SumUp are investing significantly in this technology, setting a foundation for widespread acceptance across different sectors.
Small and Medium Enterprises (SMEs), as well as pop-up retail businesses already leverage QR codes for transactions. As the technology evolves, 2025 is expected to witness a marked increase in the use cases for QR codes beyond these sectors into more traditional areas. This transition may reflect a broader willingness among consumers to embrace alternative payment methods and could even lead to greater financial inclusivity as merchants of all sizes adopt these solutions.
Challenges in Payment Card Integrated Circuit Pricing
To contrast the positive outlook for QR codes, the report also highlights the stagnation of payment card integrated circuit (IC) average selling prices (ASPs) that will not return to pre-COVID-19 levels anytime soon. Factors contributing to the sustained increase in chipset prices include global manufacturing challenges, rising energy costs, supply chain disruptions, and persistent inflation. The last three years have seen a staggering rise in ASPs for payment card ICs, with an approximate increase of 30% from 2020 to 2023.
Despite predictions of slight price depreciations in 2025, ABI Research estimates that it will take several more years for these prices to stabilize at levels similar to those seen before the pandemic. This stagnation presents challenges for payment system providers looking to balance cost control with technology adoption.
Navigating Uncertainty in 2025
2024 served as a year of reflection for many businesses as they grappled with technology adoption and strategic investment decisions amidst market uncertainties. Stuart Carlaw, Chief Research Officer at ABI Research, noted that many industries are at a critical juncture where they are focusing on building robust implementation strategies and assessing potential solutions. This cautious approach reflects widespread prudence as companies keep an eye on the economic climate and consider their investment capabilities.
As 2025 unfolds, it’s expected that businesses will be on the brink of a technological shift. The challenge lies in navigating this transition while ensuring sustainable growth. Companies that can effectively utilize QR code payments and remain adaptable in the face of static payment card prices may have a competitive edge in the evolving digital marketplace.
Conclusion
In summary, 2025 is shaping up to be a pivotal year for the digital payments industry, marked by the anticipated rise of QR code payments and ongoing challenges in pricing for traditional payment methods. Companies across all industries must prepare to adopt innovative solutions and navigate a landscape fraught with both opportunity and uncertainty. To learn about more trends affecting technology in the coming year, refer to ABI Research’s whitepaper, which provides pivotal insights into what to expect in 2025.
Rising Popularity of QR Code Payments
QR code payment acceptance is poised to expand, owing to its existing popularity in regions such as China and its emerging growth in markets like India. Consumer behavior and increasing digital adoption have paved the way for QR codes to transition from a niche solution to a more mainstream payment method. Major players in the market like PayPal, Stripe, and SumUp are investing significantly in this technology, setting a foundation for widespread acceptance across different sectors.
Small and Medium Enterprises (SMEs), as well as pop-up retail businesses already leverage QR codes for transactions. As the technology evolves, 2025 is expected to witness a marked increase in the use cases for QR codes beyond these sectors into more traditional areas. This transition may reflect a broader willingness among consumers to embrace alternative payment methods and could even lead to greater financial inclusivity as merchants of all sizes adopt these solutions.
Challenges in Payment Card Integrated Circuit Pricing
To contrast the positive outlook for QR codes, the report also highlights the stagnation of payment card integrated circuit (IC) average selling prices (ASPs) that will not return to pre-COVID-19 levels anytime soon. Factors contributing to the sustained increase in chipset prices include global manufacturing challenges, rising energy costs, supply chain disruptions, and persistent inflation. The last three years have seen a staggering rise in ASPs for payment card ICs, with an approximate increase of 30% from 2020 to 2023.
Despite predictions of slight price depreciations in 2025, ABI Research estimates that it will take several more years for these prices to stabilize at levels similar to those seen before the pandemic. This stagnation presents challenges for payment system providers looking to balance cost control with technology adoption.
Navigating Uncertainty in 2025
2024 served as a year of reflection for many businesses as they grappled with technology adoption and strategic investment decisions amidst market uncertainties. Stuart Carlaw, Chief Research Officer at ABI Research, noted that many industries are at a critical juncture where they are focusing on building robust implementation strategies and assessing potential solutions. This cautious approach reflects widespread prudence as companies keep an eye on the economic climate and consider their investment capabilities.
As 2025 unfolds, it’s expected that businesses will be on the brink of a technological shift. The challenge lies in navigating this transition while ensuring sustainable growth. Companies that can effectively utilize QR code payments and remain adaptable in the face of static payment card prices may have a competitive edge in the evolving digital marketplace.
Conclusion
In summary, 2025 is shaping up to be a pivotal year for the digital payments industry, marked by the anticipated rise of QR code payments and ongoing challenges in pricing for traditional payment methods. Companies across all industries must prepare to adopt innovative solutions and navigate a landscape fraught with both opportunity and uncertainty. To learn about more trends affecting technology in the coming year, refer to ABI Research’s whitepaper, which provides pivotal insights into what to expect in 2025.
Topics Financial Services & Investing）
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