Tag: apple mobile payments

Mobile wallet industry still led by Apple Pay and Samsung Pay

A recent report from BI Intelligence indicated that smartphone payments are still dominated by the same tech giants.

Mobile wallet tech using contactless payment technology will be used by approximately 148 million people around the world, said a new report that was published by Juniper Research, which also claimed that this format will be the leader in mobile device based transactions.

That said, it is clear that within that limited space, there are clear leaders that have already carved out their positions.

The Juniper Research report identified Apple Pay and Samsung Pay as the two top mobile wallet brands that have grabbed hold of the largest share of the smartphone payments market. In fact, together, they are believed to hold a 70 percent share of the number of customers who use that type of contactless payment service in stores. This suggests that those two firms could be the dominant figures in this market and may be able to keep a firmer hold on their portion of that space than newer entrants or older ones that have not been as successful at gaining user-ship.

Apple Pay leapt into the mobile wallet space quite strongly as it had been a greatly anticipated service.

Mobile Wallet - Mobile PaymentsIt launched as one of the first major entrants into the American market, which helped to ensure that it would build users more quickly than smaller players or later joiners. While Samsung didn’t arrive nearly as early, it still held onto a competitive advantage in the fact that it can be used at both NFC technology based terminals and those that are compatible with a magnetic stripe card. In Apple’s case, the mobile payments service can connect only with NFC readers.

Firms invested in mobile payments are pushing hard to gain U.S. customers, but adoption has been slow. Most consumers have yet to be convinced that there is any great benefit to using their smartphones instead of their plastic credit cards, which they already find to be quite convenient. Moreover, many people still face the barrier of comfort when it comes to feeling that their sensitive personal data will be kept secure.

Moreover, the adoption of NFC technology based contactless payments is also holding back widespread use in the United States, as only 20 percent of American terminals are actually equipped to accept transactions through those mobile wallets.

Apple is leading the way in mobile payments

Apple Pay has become a success in the United States

Apple has established success in the U.S. mobile payments market. The company has been fighting to find a foothold in the mobile payments space for some time, but successfully did so with the launch of its own payment service, called Apple Pay. The service was launched in late 2014 and adoption has been steadily growing throughout the United States since then. Apple Pay has won praise because of its security features and convenient nature, which has made it one of the most used mobile payments services in the country.

Report highlights the growing power of Apple Pay

Piper Jaffray, and investment bank, has released statistics concerning the mobile payments market, showing that Apple is leading the way. The report from Piper Jaffray shows that approximately 20% of iPhone users have adopted Apple Pay. While the adoption of the payments service among iPhone users may seem low, the report notes that Apple Pay is the overwhelming share leader when it comes to point-of-sale mobile payments. The success that Apple has found has made it more attractive to banks, which are beginning to show more support for its payment services. In September, 515 banks were supporting Apple Pay. Now, however, more than 930 are supporting the service.

Apple expected to continue finding success in the mobile payments market

Mobile Payments - Apple PayThe report predicts that Apple Pay will continue to find success in the mobile payments market. Apple is planning to introduce new features that may secure this success. These features are rumored to include better support for loyalty programs, particularly those that have been put in place by large retailers. Apple Pay may also find success in other countries as Apple attempts to break into new mobile payments markets throughout the world.

Competition in other countries may prove fierce for Apple

Apple has faced strong competition in the mobile payments space. Google, Samsung and several other companies have become involved in this sector and have been vying for the support of consumers and businesses alike. In other countries, Apple may find more ferocious competition, especially as foreign banks have shown relatively little interest in the company’s mobile payments service.