Tag: m-payments

The retailer has decided to take its own direction instead of choosing to accept payments through Apple Pay.

Neiman Marcus, the luxury retailer, has now joined forces with Capital One in order to create its own mobile wallet so that its credit card customers will be able to use an app on their smartphones in order to pay for purchases while in store.

At first, the mobile app will be available only as an iOS application, so it will be for iPhone users.

This mobile wallet app will integrate with a number of different credit cards, including the Neiman Marcus card, in addition to Bergdorf Goodman, American Express, MasterCard, Visa, and Discover. Similar to Apple Pay, it will make it possible for customers to be able to buy items, in-store, without having to use their actual plastic credit cards. At the moment, the app won’t support the use of gift cards.

This helps to explain why Neiman Marcus chose not to sign on with the Apple Pay mobile wallet.

It is clear that the retailer preferred to create its own competing mobile payments platform. That said, what is quite interesting about this application, and what makes it very different from Apple Pay is that it is compatible with more versions of the smartphone. At the moment, Apple Pay can be used only with the iPhone 6 and the iPhone 6 Plus. However, the mobile payments wallet from Neiman Marcus will be available to users of several different versions of that iOS based smartphone.

While Apple Pay may be the most well recognized and visible smartphone wallet, there isn’t a single app in this space that has reached the point that it can say that it can block out most other competing applications that are hoping to make their way into this space.

Neiman Marcus isn’t the only one to choose not to sign on with Apple and that has decided to create its own mobile wallet. Starbucks – the company that is typically considered to be the most successful mobile payments venture in the United States – has also done so, as have Walmart, Exxon Mobil, 7-Eleven, and Southwest Airlines.

Deloitte report suggests that mobile payments will become a mainstream success this year

This year, mobile payments may experience strong growth, even becoming mainstream in some parts of the world. According to a report from Deloitte, a global professional services firm, mobile payments is expected to see phenomenal growth in 2015. In-store mobile transactions, in particular, will experience global growth, as more retailers begin to use mobile point-of-sale systems in order to engage mobile consumers more effectively.

In-store mobile transactions expected to grow by more than 1,000%

According to the report, global in-store mobile payments will grow by more than 1,000% this year. An estimated 10% of all smartphones throughout the world will be used to make a mobile transaction in a physical store at least once a month. Last year, less than half of these devices were used to make mobile payments in stores. Retailers are embracing new payment services in order to connect with a growing audience of mobile consumers. These people are beginning to heavily rely on their mobile devices in their daily lives, and their interest in mobile shopping has been growing aggressively over the past several years.

Mainstream acceptance of mobile commerce may be possible

In 2015, many of the prerequisites needed for mobile payments to go mainstream are expected to be satisfied. Financial institutions are expected to become more comfortable with mobile transactions and the safety of new mobile services, encouraging their support for this growing sector. Merchants are expected to place more focus on the mobile space, embracing new payment services that are becoming popular with consumers. The growing number of NFC-enabled mobile devices is also making it easier for consumers to participate in mobile commerce.

Security remains a major challenge for the growing mobile commerce industry

There are still challenges that the mobile payments space must overcome. One of the most significant of these challenges is security. Because mobile commerce deals in the trafficking of financial information, it has become a popular target for those that would exploit this financial information. As such, security is becoming a major priority for firms that offer mobile payment services.