Tag: paypal

Survey highlights the growth of Apple’s mobile payments service

| March 16, 2015

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

Mobile Payments Survey - highlights growthThough 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.

PayPal acquires mobile payments firm Paydiant

| March 5, 2015

Paydiant acquisition will give PayPal access to new technology and an extensive list of customers that make use of this technology regularly

PayPal has announced that it will be acquiring Paydiant, a mobile payments firm. The acquisition will give PayPal immediate access to those that use the technology that has been developed by Paydiant. This includes Subway and the retail consortium Merchant Customer Exchange. The consortium is comprised of companies like Target, Wal-Mart, and Sears, and access to this group could further expand PayPal’s position in the mobile payments space.

Paydiant has established a commanding presence in the mobile commerce space because of its innovative technology

Paydiant specializes in mobile technology, and has developed framework that supports mobile payments made through applications, both online and in physical stores. This technology supports the use of codes that function as ways to initial a transaction. Adoption of Paydiant’s technology has been relatively slow, but many prominent companies use the technology to engage mobile consumers in ways that were never before possible. This has made Paydiant a strong force in the mobile payments field, which is becoming increasingly crowded and competitive.

PayPal will face strong competition from Apple, Google, and Samsung in the coming year

PayPal acquires mobile payments firmPayPal has established a strong presence in the mobile field, having supported mobile consumers and businesses for several years. Later this year, the company will branch off from its current owner, eBay, and become a standalone entity. The company will also be in direct competition with Apple and Google, both of whom are trying to establish dominance in the mobile payments market. Samsung will also be competition for this position, having recently announced its plans to make an initial breach into the mobile commerce market later this year.

Future projects with Paydiant could help PayPal find more success in the mobile payments space

Paydiant’s technology and extensive customer base may help PayPal compete with others in the mobile market. The two companies are expected to work together to develop new initiatives that are based on Paydiant technology and PayPal services. Details concerning future plans have, of course, not been disclosed at this time.