Tag: Apple Pay

Apple’s mobile payments service has already had a major impact

| December 26, 2014

Apple Pay has managed to find success where other services have failed

Apple Pay has been finding significant success as a mobile payments service in the few months since its launch, but the service could face challenges in the future. When Apple launched its payment service in September of this year, many believed that it would be a game changer in the mobile commerce space. The service launched with the support of several major retail companies and financial institutions and has been gaining more support from these sectors since.

Report shows that mobile payments among iOS users is rising dramatically

A recent report released by Investment Technology Group found that Apple Pay has already had a significant impact. The report shows that 60% of new Apple Pay users made a payment through the service multiple times during November, suggesting that the platform is engaging consumers effectively. By comparison, 20% of new PayPal customers used the company’s service during the same period.  The report also shows that Apple Pay customers used the service approximately 1.4 times per week.

Consumers are likely to continue using Apple Pay with merchants they already purchase products from

mobile payments - apple payThe retail partners that Apple has acquired for the launch of Apple Pay have helped the service flourish. Those with iOS devices have been without a comprehensive mobile payments solution for some time, and many were happy to use Apple Pay when it was launched in September. The report from Investment Technology Group shows that Apple Pay users were more likely to continue using the service with the same retailers numerous times, with 66% of consumers using the service at the same merchant for future transactions.

 Mobile payments is coming under regulatory scrutiny

Despite the success of Apple Pay, it could be subject to restrictive financial regulations in the future. Apple may be subject to examination by the Consumer Financial Protection Bureau, which has grown somewhat concerned about the mobile payments space recently. While the agency has not yet taken steps to examine companies like Apple and determine whether or not they must comply with the Consumer Financial Protection Act, mobile payments have been falling under more regulatory scrutiny recently.

Starbucks is the leader of mobile payments in the US

| December 18, 2014

Starbucks continues to show strong position in the mobile field

Starbucks is leading the way when it comes to mobile payments. The company has emerged as a sort of unexpected competition for Google, Apple, and others that have invested heavily in mobile commerce. Google was among the most aggressive companies to enter into this market with its Wallet platform. Apple followed suit years late with Apple Pay. Neither of these services have managed to become mainstream successes in the mobile commerce field, but Starbucks’ mobile payment app has.

90% of all mobile payments made in the US in 2013 were done in Starbucks stores

In 2013, 90% of all mobile transactions made in the United States were conducted in Starbucks stores, according to CEO Howard Schultz. Mobile payment volume is also growing by 50% every year, with more than 7 million mobile transactions being conducted at stores every week. Mobile payments now account for 16% of all transactions handled by Starbucks. There have been many questions regarding how Starbucks has managed to find success when competing against large companies like Google and Apple.

Loyalty program provides customers with an incentive to participate in mobile commerce

Starbucks Coffee - Mobile PaymentsOne of the ways Starbucks has managed to establish such a strong position in the mobile commerce space has to do with the incentives it gives consumers to use its mobile app. The company has been using incentives to encourage consumers to use its own payment solutions for several years now, and these incentives have become part of the company’s mobile strategy. Starbucks’ loyalty program provides rewards for those that make mobile payments, which has proven quite popular among consumers.

Convenience is key to finding success in the mobile commerce field

Starbucks also boasts of a prime environment in which mobile payments can thrive. Many of the people that visit Starbucks stores want to take advantage of fast service, and the Starbucks mobile app can help with that. With the app, customers can place orders before they even enter a store, and pay for these orders quickly from their mobile device. By emphasizing convenience, Starbucks has managed to find success where others have failed.