Investment from Google, Samsung and Apple in the domain of Mobile Payments shows that the market is expanding. The three technology giants are promoting their respective applications; Android Pay & Google Wallet, LoopPay, and Apple Pay.
We start our inventory with Google. Google Wallet is relatively widely used in the USA, although it cannot yet be said to have conquered the masses. To enhance its offering, Google announced last March the imminent release of Android Pay. This solution will enable payment in physical stores and on e-commerce sites while providing Application Program Interfaces (APIs) to mobile developers. To differentiate itself from Apple, Google’s new payment solution will also offer the possibility to perform peer to peer money transfers. The arrival of Android Pay does not mean the end for Google Wallet, but it will no longer offer a mobile payment service. It will become a digital wallet that allows one to send and receive money. This feature, already available in the current version, will probably be the only feature of the new version.
Apple Pay, launched last year, is based on the new contactless features of the iPhone 6 and Apple Watch. Unlike its competitors, Apple has established partnerships with the major players in the payment industry, which has enabled them to be immediately compatible with all major credit and debit cards in the US. It is simple to use and allows the customer to record commonly used payments cards. In only three months of existence, Apple Pay had succeeded in becoming the leader of contactless payment solutions in the US.
Samsung must not be forgotten in this story. The Korean giant intends to become truly competitive in the M-payment market. With the acquisition of LoopPay, Samsung has gained a considerable technical advantage. The tool uses Magnetic Secure Transmission (MST) contact free technology, which works with credit card readers. This system is compatible with 90% of terminals deployed in the US, according LoopPay. Until recently, LoopPay required the consumer to buy a dedicated card to add to their phone. This handicap has been resolved recently with the integration of this technology to the smartphone Samsung Galaxy S6.
Three actors for three different methods. What is certain is that the m-payment market is attractive for the mobile technology giants, and not without reason! According to various studies, m-commerce is expected to be worth more than 180 billion euros worldwide by the end of 2015. Booming, this market will become a key sales channel for merchants in all sectors.
