Tag: apple

Apple Pay continues to fight for a spot in mobile payments

| March 23, 2016

Adoption of Apple Pay remains relatively low among consumers

Apple Pay is still fighting to gain a foothold with consumers in the mobile payments space. It has been 18 months since Apple launched its new payment service, which received strong praise during its initial launch. The service was heralded as something that the mobile payments space desperately needed: A simple, intuitive, and convenient platform. Since its launch, however, Apple Pay has only managed to find modest success, with 80% of iOS users claiming to have never used the service and only 3% claiming to use it regularly.

Security and illusory convenience make Apple Pay less attractive

One of the problems that Apple Pay may be facing is the fact that the average consumer does not see such services as any more “mobile” than cash or a credit card. In essence, mobile payments are meant to be more convenient than traditional forms of commerce, but this is not usually the case due to the similarity these services have with credit and debit cards. Another issue consumers have has to do with security. Many people have noted that they will not participate in mobile payments because of security issues, fearing that their financial information could be at risk of exploitation.

Survey shows that consumers favor in-app shopping over in-store mobile transactions

Mobile Payments - Apple PayA recent survey from First Annapolis Consulting, Consumers are becoming more interested in making purchases with mobile applications. In Spring on 2015, 11% made only in-app purchases, with the majority, 58%, opting to use point-of-sale systems. In December of 2015, 34% of consumers opted to only make in-app purchases. Pushing in-store mobile transactions among consumers has proven difficult, as consumers appear to favor traditional forms of commerce. This has been a challenge for Apple Pay, which has slowed its adoption among those interested in mobile payments.

Competition keeps Apple Pay from finding mainstream success

Competition is also a reason why Apple Pay adoption is relatively low. Apple is currently fighting with several other companies to establish a foothold in the mobile payments space, especially after breaking into new markets. Apple Pay recently launched in China, where companies like Alibaba and Tencent have already found a great deal of favor among consumers, limiting the exposure that Apple Pay has managed to obtain.

Square breaks into the Australian mobile payments market

| March 9, 2016

Square is coming to Australia

Square, a prominent mobile payments firm, has expanded into the Australian market. The company has made its payment service available in the United States, Canada, and Japan, where it has found significant success in the past. While considered successful, Square has been experiencing some turbulence in recent months, largely due to falling stock prospects and growing competition in the mobile commerce space. The growing demand for new payment services in Australia may secure a brighter future for Square if it manages to effectively connect with consumers.

Company has managed to find success by expanding access to mobile commerce among consumers

Square launched in 2009, receiving strong support from several technology companies and organizations interested in mobile payments. The company had developed an accessory for mobile devices that allowed iOS and Android devices to make mobile transactions, even if they were not equipped with NFC technology. This accessory earned Square early popularity among consumers and put the company in direct competition with others that had developed similar accessories for mobile devices.

Square will be offering different products in Australia than it does in the US

Australia - Mobile PaymentsIn Australia, Square will be selling its mobile card reader for $19. Merchants using Square’s mobile payments services will be charged 1.9% per transaction being made. This is somewhat different from what Square offers in the United States, where its mobile card reader is free, but merchants can purchase a full-sized point-of-sale system for $99. In the U.S., merchants are charged 2.75% per mobile transaction being made. Square has not yet announced plans to launch its new contactless payment reader in Australia, but may choose to do so in the future.

Company to compete with Apple in the Australian payments market

Australia is becoming a competitive mobile payments market, with several companies bringing their new payment platforms to the country. Recently, Apple released its payment service in Australia, which Square is set to compete with. Square may find a place in the market among small and medium sized retailers who want to engage mobile consumers more effectively, thereby securing a degree of success in Australia.