P2P (person to person) money transfers will see the largest year-on-year increase in value in 2017, as the overall digital payments market approaches $3.9 trillion in 2017, according to Juniper Research.

The new research – Digital Payment Strategies: Online, Mobile & Contactless 2017-2021 – found that online retail sales in the US in 2016 were around four per cent ahead of previous forecasts, thanks to an increased emphasis from bricks-and-mortar retailers in developing a converged online/offline approach.

The study cited the example of Wal-Mart, which currently realises less than five per cent of sales through online channels, seeking to boost its market share through the development of an innovation hub to drive retail opportunities.

Demonetisation policies employed by India’s government have also encouraged a surge in mobile wallet adoption, according to the research, resulting in sharp increases in both mobile retail transactions and P2P payments.

Furthermore, the research argued that the rise of bots and other natural language interfaces was likely to transform the consumer-facing front end, offering an improved shopper experience. However, research author Windsor Holden said that the performance of the bot in customer service channels was critical. “Poorly trained bots will issue unhelpful responses, potentially resulting in customer churn away from a given brand or retailer”, he said.

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