Thursday , November 23, 2017

Digital-Coupon Redemptions Will Top $91 Billion in Five Years, Says Juniper

Chatbots, quick-response codes, and so-called invisible payments will spur digital-coupon redemption volume to $91 billion worldwide by 2022, forecasts Juniper Research Ltd. These three technologies will propel redemption as consumers increasingly become accustomed to them, says the United Kingdom-based research firm.

For example, chatbots, a form of machine learning that enables consumers to interact with a computer in an online conversation for activities like ordering a pizza, have the potential to add value to loyalty and personalized offers, Juniper says. Though limited in today’s market, the volume of chatbot coupons—now at an estimated 25 million in 2017—will increase to 1.1 billion by 2022, Juniper says.

In the nearer term, the firm predicts that 8.3 billion app-based coupons will be redeemed in 2018, followed by 1.7 billion QR-code coupons, and 58.4 million chatbot coupons.

Most of these chatbot coupons will be delivered via apps, which make it easier for retailers to offer personalized coupons, Juniper says.

Juniper also suggests that QR codes could endure and have greater potential. “This is in part due to the decision by Apple to integrate QR scanning functionality directly into the camera on its devices, rather than the previous requirement for consumers to download a third-party app,” Juniper says in a white paper accompanying the report. QR codes will be especially popular in the Far East and China.

The other factor influencing digital-coupon growth is the concept of “invisible” payments. Ride-sharing service Uber is the poster child for this. Riders, having previously loaded their credit or debit card credentials into their Uber accounts, find their accounts debited for the ride costs upon completion of a journey. Invisible payments have greater potential in retail stores because of the sophistication retailers can offer, Juniper says.

It cites Amazon.com Inc.’s Amazon Go service that enables users to shop in a store, pick up their products, and simply walk out. The payment is automatically applied to the payment method stored in their Amazon account. Juniper anticipates Amazon could one day expand Amazon Go into some Whole Foods Markets locations. Amazon purchased the grocer this summer.

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