Tag: australia

US may need to mimic the UK to find success in mobile payments

| March 24, 2016

UK shows that success in the mobile commerce space is quite possible

The United Kingdom may be leading the United States when it comes to mobile payments. The latest statistics coming from the UK Cards Association show that one in 10 card transactions are now made through mobile devices using contactless systems. This has grown considerably over what it had been in the last year. In the U.S., mobile payments are still fighting to find a foothold among consumers for various reasons. If companies operating in the mobile commerce space want to ensure success in the country, they may have to look elsewhere for inspiration.

Apple Pay is fighting for a foothold in the United States

In the U.S., consumers are interested in mobile commerce, but relatively few participate in this space. Apple Pay, one of the country’s more popular mobile payments services, has found only modest success, with only 3.5% of mobile transactions actually being completed through the platform. This is actually lower than the transactions that Apple Pay accounted for in March of 2015, which stood at 5.9%. Fewer people are now using Apple Pay than in the past and this is a trend that is being seen with other mobile payments services as well.

Ubiquity may be the key to success

Mobile Payments Plan for SuccessIt companies in the United States’ mobile commerce market want to succeed, they may have to focus on ubiquity. This is something that the UK market has accomplished quite well. The country is home to the most heavily concentrated banking and acquiring segments and retailers in the country serve a very well defined geographic market. Barclays, one of the country’s largest banks, accounts for more than 40% of all credit and debit card spending. The country also has a multitude of merchant acquire options. What this means is that if Barclays backs mobile transactions, it is extremely easy for retailers to accept payments being made from mobile devices, something that is not readily apparent in the U.S. market.

Mobile commerce is growing in Australia and Canada at well

The UK is not the only country where mobile commerce is flourishing, of course. Both Australia and Canada have rapidly growing mobile commerce markets, which are becoming more competitive with what has already been established in the U.S. While mobile payments are having trouble finding momentum in the U.S., the market is still quite attractive to companies that want to provide consumers with new mobile services. There may need to be a greater focus on ubiquity in order to ensure future success, however.

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.