Apple Pay is gaining momentum among iOS users
Baird Equity Research has released the results of a new survey concerning iPhone users and Apple Pay. Apple’s mobile payments service was released in October of last year and has managed to find significant momentum despite the short period of time it has been available for. The service can be used on both the iPhone 6 and iPhone 6 Plus, but it is not available for other iOS devices at this time. Apple Pay is expected to be compatible with a smartwatch that Apple is planning to release at some point in the future.
PayPal leads in mobile payments, but Apple Pay accounts for 6% of all in-store mobile transactions
According to the survey, 40% of online consumers made an in-store purchase with a mobile device. PayPal was the most preferred application among this consumers, with Google Wallet accounting for 11% of these transactions. Apple Pay only accounts for 6% of in-store mobile payments, but a significant portion of iOS users currently use the platform regularly. Approximately 40% of iPhone 6 users make use of Apple Pay to purchase products in physical stores as well as online.
Apple Pay is beginning to become more popular among retailers
Though PayPal remains the leading entity in mobile payments, Apple Pay is expected to catch up quickly. The service has the support of several major retailers, many of whom want to engage mobile consumers more effectively. These retailers partnered with Apple for the launch of the mobile payments service and have begun to find significant success in the mobile space as a result. As more retailers show support for Apple Pay, the service may begin to play a larger role in the overall mobile payments space.
Young consumers are more likely to participate in mobile payments
Notably, young consumers, between the ages of 18 and 24, are the most likely to make in-store mobile payments. Such transactions had the highest frequency among this demographic, according to the survey from Baird Equity Research. The survey notes that these consumers tend to make a mobile transaction in a physical store as many as four times per month.
Samsung may be preparing to show off its new payments platform
Samsung may be planning to reveal its new mobile payments platform as early as next week. The company is expected to unveil the platform at the upcoming Mobile World Congress. The company is speculated to have partnered with Visa to develop the new service, which is called Samsung Pay. The new platform could serve as direct competition with Apple Pay, which has managed to establish a strong foothold in the mobile payments sector in the United States.
NFC technology will continue to be supported in the mobile commerce space
Samsung has shown significant interest in mobile transactions in the past. Many of the company’s smartphones are equipped with NFC technology. This technology can be used for various purposes, such as engaging with dynamic marketing and sharing digital media with other NFC-enabled devices. NFC does comprise the backbone of most mobile payments services, however, making it one of the foundational technologies in the mobile commerce space. Samsung is expected to roll out the service alongside the launch of its new smartphone, the Galaxy 6, which will also be equipped with NFC technology.
Samsung Pay will not only support NFC-based mobile payments
Though much of the mobile payments space is governed by NFC technology, Samsung Pay may not be exclusive to those with NFC-enabled devices. The new platform is expected to be able to support mobile transactions even without utilizing NFC technology. This could make it more accommodating to consumers that do not have NFC-enabled devices and make it more accessible to the retail industry as a whole. Retailers without NFC-enable point-of-sale systems would be able to accept transactions made through Samsung Pay.
Samsung Pay could become significant competition for Apple Pay in the coming months
Rumors suggest that Samsung Pay will be compatible with as much as 90% of the point-of-sale systems that are being used by retailers currently. If this is true, this would make it more accessible than Apple Pay, which supports only NFC-based transactions. Samsung Pay could, therefore, become a major competitor to Apple Pay.