Category: Mobile Payments

Mobile payments competition is growing in Asia

| November 12, 2014

New payment services are being launched throughout Asia

Competition in Asian mobile payments space is heating up. Samsung Electronics, one of the world’s largest mobile device makers, has announced that it will be launching a new payment service in the near future. The company has partnered with Yelopay and six of South Korea’s commercial banks for the endeavor. The new service, dubbed Samsung Wallet, is expected to be made available by the end of this year and will come pre-installed on all of Samsung’s new Galaxy devices.

Samsung Wallet is expected to see a limited release by the end of this year

The Samsung Wallet will support peer-to-peer money transfer as well as allow users to make payments at participating retail locations. There will be no commission charged on transactions made through the new service, which may make it quite popular among businesses looking to involve themselves in digital commerce. Samsung wallet is being designed to support both online and offline payments as well. While the Wallet service is slated for an initial launch at the end of the year, Samsung has not yet detailed a full timeline for commercialization.

LINE looks to break into the Japanese mobile commerce market

Mobile Payments - AsiaIn Japan, mobile service provider LINE is planning to launch its own payment platform with the help of Naver, the country’s largest Internet service provider. The new service, called LINE Pay, is meant to be incorporated into LINE’s existing mobile messenger platform. The service will support mobile payments for digital purchases, as well as banking transactions.

Small companies may find it more difficult to compete in the payments space in the coming years

Mobile commerce has been particularly popular throughout Asia, where the demand for new payment services has been on the rise for some time. Consumers have become quite comfortable with the concept of shopping for and purchasing products with their mobile devices, and many companies are beginning to take steps to provide these consumers with the services they want to use. It may become increasingly difficult for small companies to find traction in Asia, however, due to the increasing number of large companies, like Samsung, looking to break into the digital payments space.

North American consumers are embracing mobile payments and digital currencies

| November 11, 2014

Accenture survey highlights the growing prominence of mobile commerce

Accenture has released the results of a new survey comprised of data collected by 4,000 consumers in the United States and Canada. The survey highlights the growing interest people have in mobile payments and digital currencies. More people are beginning to base their lives on mobile technology, and the demand for mobile-centric services has been growing rapidly as a result. Several businesses are moving to become more mobile friendly, favoring strategies that engage mobile consumers more effectively.

40% of North American consumers are using their mobile devices to make payments at merchant locations

According to the survey, 40% of consumers in North America have used their mobile device to make a payment at a merchant location. This is a 16% increase over the number of people making mobile payments two years ago. The survey shows that millennials and high-income consumers are avid supporters of mobile commerce and digital currencies. High-income consumers, those with an average household income of $150,000, are the most aggressive adopters of digital payments, with 55% of these consumers using their mobile devices to make a purchase.

Growing number of consumers are showing favor for digital forms of currency

Mobile Payments - North AmericaThe survey also found that digital currencies are beginning to gain traction among consumers. Approximately 18% of those surveyed expect to be using some form of digital currency on a weekly basis by 2020. Many have shown favor for Bitcoin, as it is one of the most popular digital currencies currently available. High-income consumers are those most likely to use digital currencies in the coming years, with millennials accounting for the minority.

Mobile commerce has yet to become mainstream, traditional payments may continue to be the norm for some time

The survey predicts that traditional forms of payment will become less popular in the coming years. Respondents noted that they expect to reduce their use of cash from now to 2020, favoring mobile-centric forms of payment. Traditional payments may still be the norm for most consumers in North America, as it could takes years for mobile commerce to enter into the mainstream.