Tag: smartphone payments

Alipay puts a new twist on mobile payments

Alipay, a leading third party online payment solution provider in China, has launched a new payment system in the Beijing Subway. The system is designed to accommodate those interested in mobile payments, allowing them to use their smartphones or tablets to pay for public transit tickets. Such a payment system is nothing new, especially in the realm of public transportation, but the way that Alipay’s system facilitates mobile payments certainly breaks away from the established norm.

System uses sound waves to facilitate payments

Alipay’s mobile payments system uses sound waves in order to facilitate mobile transactions. The system relies on the Alipaw wallet, a digital wallet application that was released in January of this year. The application emits white noise, which is registered by the payment system, which then initiates a transaction. This white noise mechanic was initially meant to facilitate peer-to-peer transactions, but Beijing Subway saw significant promise in the applications capabilities.

Alipay Wallet application heavily influenced by growing demand for mobile commerce services

The new system has been launched in two stations in the Beijing Subway. More systems are expected to be installed throughout the subway network in the near future. Alipay notes that the growing importance of mobile payments in the lives of consumers was a strong inspiration for the development of this new payment system. The Alipay Wallet application is available to both Android and iOS consumers, but the latter group is noted as a major contributor to the development of the application’s sound-based mechanics.

Application meant to make mobile commerce more accommodating to iOS consumers

NFC technology has long been a cornerstone of mobile payments, but this technology is not available for iOS devices due to Apple’s disapproval of the technology. As such, iOS consumers have had to rely on alternatives in order to participate in mobile commerce. The sound-based features of the Alipay Wallet are meant to make it possible for iOS consumers to make mobile payments easily without having to worry about having access to NFC technology.

The latest research indicates that it makes up only 0.01 percent of the total in the United States.

According to a report that was just issued by Javelin Strategy & Research, mobile payments using contactless technology at the point of sale (POS) made up only a tiny sliver of the total volume in the United States in 2012.

The report indicated that this technology was used for only 0.01 percent of the total POS volume in the U.S.

The research data showed that the total amount spent over contactless mobile payments was approximately $500 million. At the same time, though, the report did not see a grim future for this form of smartphone based transaction. In fact, based on their predictions, things are looking bright in that area.

The forecast made by the report is that there will be an increase in mobile payments at a CAGR of 61 percent.

According to Javelin’s predictions, the compound annual growth rate that will be seen for mobile payments using contactless technology will be 61 percent this year. This will mean that the method will experience growth at a rate that is higher than any other method. In fact, it is predicting that this trend will continue over the next five years, and that in 2018, the total volume will have reached 5.4 billion. This will mean that it will make up 0.13 percent of the total POS volume in the United States in that year.

A Javelin industry analyst, Aleia Van Dyke explained this trend by saying that the point of sale market in retail is experiencing a very rapid evolution, as the popularity of smartphones and mobile payments takes off. There is a much greater expectation from consumers today, as they feel that the retail businesses where they shop should be providing an enhanced shopping experience while inside the walls of the store through the use of smartphones.

The rapid implementation of mobile payments and other transaction options such as prepaid and gift cards have helped with the adoption of other technology based options, among consumers, according to Van Dyke. As a whole, retail POS purchases last year brought in $3.98 trillion. The prediction for five years down the road is $4.2 trillion.