Competition is heating up in the mobile commerce field as large companies launch their own payment services
Competition among large companies participating in the mobile commerce field is heating up. Apple has delivered a strong blow to its competitors by entering into the field with its own mobile payments service, called Apple Pay. The service has a veritable armada of retailers supporting it and has also helped many consumers participate in mobile commerce. The service has also had an unintended effect, as Apple competitors have reported that they have seen a dramatic increase in mobile payments made through their own services since Apple Pay was launched.
UnionPay announces plans to launch new payment service called Android Pay
Apple Pay may soon have a very powerful competitor that aims to establish dominance in the burgeoning Asian market. China’s UnionPay, the largest financial service institution in the region, has announced that it will be launching its own mobile payment service, based on the Android operating system. The service, simply called Android Pay, us expected to significantly increase mobile commerce adoption throughout China.
New payment service is expected to use NFC technology to facilitate transactions
Android pay is expected to make use of NFC technology. If this is the case, UnionPay is likely to subsidize the cost of NFC-enabled SIM cards or other solutions, allowing consumers to make use of the service even if their mobile device does not have NFC capabilities of its own. The new platforms security features are still unknown, but it may be difficult for the Android platform to compete with Apple’s use of biometric technology to keep consumer information safe.
China continues to grow as a prominent mobile commerce market
China has become one of the most attractive and active mobile commerce markets in the world. Large retail groups, such as Alibaba, have been promoting mobile shopping among consumers for some time now and Chinese consumers have shown that they are willing to embrace mobile commerce. UnionPay may find significant success with its new mobile payments venture, if it can find a way to ensure the security of consumer information.