Apple Pay may provide more momentum to the European payments sector
Mobile payments are likely to gain momentum with the inevitable expansion of Apple Pay. Though Apple has not yet brought its new mobile payments service to markets outside of the United States, the early success of the service makes it likely that expansion is in the future. Europe is one of the most attractive mobile markets in the world, with high smartphone penetration and an expansive mobile Internet infrastructure. Consumers in many European countries are using their devices to purchase products.
Report suggests that companies are taking steps to prepare for Apple Pay
In preparation for Apple Pay’s potential expansion to Europe, many companies are beginning to improve their own mobile services. A new report from IHS Technology notes that these companies are becoming more mobile-centric, hoping to position themselves so they can benefit from the launch of Apple Pay and other mobile payments services. Visa is one such company, which is expanding tokenization throughout Europe. This involves the use of digital tokens to replace financial information, making mobile transactions significantly more secure.
European consumers may show favor for Apple Pay
Apple has the potential to cause some disruption in Europe’s mobile market. There are several mobile payments solutions available to consumers throughout Europe, but Apple Pay has managed to generate a great deal of hype before even launching in this region. If the service does come to Europe, consumers are likely to abandon the mobile payments solutions they currently use in order to use Apple Pay, at least for a time. Retailers may also opt to use Apple Pay as a way to support mobile transactions.
Apple will face competition in the mobile payments space
Competition is likely to be fierce for Apple and the company is not likely to dominate the mobile payments field without a fight. Samsung recently announced that it will be launching its own mobile payments service in the near future, which will appeal to those with Android devices. Apple’s service is only available for iOS devices, and of those only the iPhone 6 and iPhone 6 Plus can make use of the service at this time.
In North America, 20% of Millenials made a mobile commerce purchase in the past month, with 21% of this demographic doing so in Europe. The Asia Pacific region is home to the largest mobile commerce market where Millenials are active. The report shows that 46% of Millenials in this region have made a mobile commerce purchase in the past month. The report notes that nearly half of China’s Internet users shop online using a mobile device of some kind every month, though India is seeing the greatest rise in mobile shoppers.