Tag: samsung pay

Mobile wallet industry still led by Apple Pay and Samsung Pay

A recent report from BI Intelligence indicated that smartphone payments are still dominated by the same tech giants.

Mobile wallet tech using contactless payment technology will be used by approximately 148 million people around the world, said a new report that was published by Juniper Research, which also claimed that this format will be the leader in mobile device based transactions.

That said, it is clear that within that limited space, there are clear leaders that have already carved out their positions.

The Juniper Research report identified Apple Pay and Samsung Pay as the two top mobile wallet brands that have grabbed hold of the largest share of the smartphone payments market. In fact, together, they are believed to hold a 70 percent share of the number of customers who use that type of contactless payment service in stores. This suggests that those two firms could be the dominant figures in this market and may be able to keep a firmer hold on their portion of that space than newer entrants or older ones that have not been as successful at gaining user-ship.

Apple Pay leapt into the mobile wallet space quite strongly as it had been a greatly anticipated service.

Mobile Wallet - Mobile PaymentsIt launched as one of the first major entrants into the American market, which helped to ensure that it would build users more quickly than smaller players or later joiners. While Samsung didn’t arrive nearly as early, it still held onto a competitive advantage in the fact that it can be used at both NFC technology based terminals and those that are compatible with a magnetic stripe card. In Apple’s case, the mobile payments service can connect only with NFC readers.

Firms invested in mobile payments are pushing hard to gain U.S. customers, but adoption has been slow. Most consumers have yet to be convinced that there is any great benefit to using their smartphones instead of their plastic credit cards, which they already find to be quite convenient. Moreover, many people still face the barrier of comfort when it comes to feeling that their sensitive personal data will be kept secure.

Moreover, the adoption of NFC technology based contactless payments is also holding back widespread use in the United States, as only 20 percent of American terminals are actually equipped to accept transactions through those mobile wallets.

Samsung is closing in on Apple in the mobile payments race

Samsung and Apple may go head to head in the growing mobile market

In the race for dominance in the mobile commerce field, Samsung is beginning to catch up to Apple. Google, Samsung, and Apple have all established a foothold in the mobile payments field with their relatively new services. These services make it possible for consumers to pay for products using their mobile devices, both online and in physical stores. Mobile payments services are growing in popularity, especially in China, where both Samsung and Apple are currently vying for the favor of consumers in the competitive market.

Samsung Pay now has more than 5 million registered users

Samsung recently introduced its Samsung Pay service, which has already acquired a great deal of support from companies and consumers alike. According to Samsung, some 5 million people have already signed up for the service. Samsung Pay has processed more than $500 million transaction in the United States alone since launching in September of last year. The service is quickly closing in on Apple Pay, which has established a strong lead in the U.S.

Apple Pay still has a considerable lead over other services

Mobile Payments RaceApple Pay has an estimated 12 million monthly users throughout the world, experiencing aggressive growth since its launch in October of 2014. The service recently launched in China following some resistance from Chinese banks and is expected to find some modest success. Many consumers have come to show support for Apple Pay because of its security features, which are also present in Samsung Pay and Google’s Google Pay service.

Innovative technology may help Samsung compete with others

While Apple currently holds the lead in the mobile payments space, Samsung is likely to catch up quickly due to the acquisitions it made last year. Samsung acquired LoopPay in 2015, whose technology mimics the magnetic stripes found on most conventional payment cards. This has made Samsung Pay more accessible to a wide range of consumers. Backed by this technology, Samsung may be able to establish a very powerful position in the mobile commerce market, which is expected to reach $142 billion by 2019, according to Forrester Research.