Report suggests that Android Pay could be out competitors in the mobile payments space
Android Pay is expected to become the leading mobile payments tool in the coming years, according to a report from Digitimes Research. Android Pay was initially released in September of this year and serves as Google’s latest mobile payments solution. Google had released a payment platform years ago, called Google Wallet, but this platform has struggled to find traction with consumers. The company does not have plans to kill Google Wallet, with Android Pay working alongside the platform.
Apple Pay may fall behind Android Pay when it comes to supporting consumers interested in mobile payments
Google’s latest payment solution is competing with Apple Pay for the favor of consumers. According to Digitimes Research, Android Pay has three major advantages over its competitor, with the first being that more banks and retailers are willing to embrace the solution. More consumers are also expected to have Android devices as opposed to iOS devices, with Android accounting for 75% of global smartphone shipments in 2015. The accessibility of Apple Pay is somewhat limited, as the platform is only available to those with high-end iOS devices.
Lack of administrative fees make the solution attractive to retailers and banks
One of the greater advantages of Android Pay is that users, banks, and retailers are not required to pay a service or administration fee for using the solution. This has made Android Pay very attractive to businesses interested in mobile payments. Android Pay also supports multiple identification technologies, including biometrics, that make transactions more secure. The solution also recognizes graphics, such as QR codes, making payments more convenient for consumers.
Heightened security makes Android Pay more attractive
Android Pay’s focus on security may become one of the major benefits of the platform. Security has long been an issue facing the mobile payments space, with many consumers opting out of mobile commerce over fears that their financial information would be compromised. Google’s approach to the security problem is heavily focused on protecting consumer information, which has made it very popular among consumers interested in mobile payments.
The report shows that Southeast Asia is home to a 45% conversion rate when it comes to retail sales. Many consumers in this region are using their mobile devices to shop and retailers have been successful in converting shoppers into paying customers. More than half of the online traffic in this region is coming from mobile consumers, as they have found that using their smartphones and tablets to get their shopping done is more convenient than simply visiting a physical store.