Tag: apple mobile payments

Mobile payments has yet to reach its full potential

| October 7, 2014

Mobile commerce continues to grow more popular, but the market is becoming very fickle

Mobile payments are growing in popularity, but they have yet to reach their full potential. The mobile commerce space is constantly shifting as new payment services are introduced and companies move from one of these services to another very quickly. With businesses constantly changing the payment services they use, or opting to develop their own, it can be difficult for any single mobile commerce platform to gain traction. This can also lead to some confusion among consumers.

Convenience is what drives mobile commerce adoption

Mobile commerce is convenient, which is part of its appeal to consumers. Using a service like Apple Pay, someone can pay for goods and services with the information on their mobile device, removing the need to carry any kind of physical currency around. Digital wallets also serve as a replacement for conventional wallets. These applications have the ability to store credit card and payment information, as well as discount deals and special offers from retailers.

Retailers are moving from one mobile commerce service to the next, with some deciding to develop their own solution

Mobile Payments - 7-ElevenWhile there are some mobile commerce platforms that have managed to find success, many more are struggling to engage consumers, and the fickleness of businesses may be to blame. Convenience store chain 7-Eleven had been using an existing mobile payments solution in order to engage mobile consumers more effectively, but the company has decided to develop its own solution. As such, customers that have come to expect mobile payment support from 7-Eleven stores will have to wait until the company launches its own offering.

Restaurants are being affected by fluctuations in the mobile commerce market

Several restaurants have embraced the concept of mobile commerce, but they often move from one payment solution to the next. For restaurants that rely on a third party mobile commerce organization, any change that such an organization makes to its business structure or the services it offers can have an impact on a restaurant’s ability to accept mobile payments.

Banks could see fee revenue drop because of mobile payments

| September 30, 2014

Australians planning to purchase a new iPhone could avoid bank fees

The new iPhone 6 may have an impact on bank fee revenue in Australia, according to a report from Roy Morgan Research. The report shows that more than 1.5 million consumers throughout Australia have plans to purchase an iPhone within the next 12 months. While buying a new mobile device would not usually affect banking revenues, the new iPhone will serve as a mobile payments platform, supported by the Apple Pay service. The service could do away with banking fees entirely.

Report shows that many people planning to buy a new iPhone are already aware of mobile payments

The report shows that many people planning to purchase a new iPhone are already familiar with mobile payments. An estimated 29.4% of consumers in the country make a mobile payment regularly throughout any given month and these people are likely to embrace Apple Pay with enthusiasm. Many financial institutions are supporting the new payment service, but in doing so they may see reductions in the revenue they acquire through fees.

Younger consumers may be more apt to use Apple Pay

Australia Mobile PaymentsThose planning to make use of the Apple Pay service in Australia are also considered to have a “high spend potential.” The report shows that many of these people have a higher than average household income, but are not necessarily knowledgeable about mobile commerce. Younger consumers are expected to use the Apple Pay service more regularly, while older consumers may favor traditional commerce platforms that they have become quite comfortable with.

New mobile commerce services allow consumers to avoid bank fees

Mobile payments are becoming more common throughout Australia and the demand for mobile services is on the rise. Banks are beginning to accommodate this demand by offering their support to services like Apple Pay, but in doing so these banks may be exposing themselves to new risks. One of these risks involves a drop in fee revenue. Services like Apple Pay often allow consumers to avoid certain services offered by banks, which allows people to also avoid bank fees.