Who Will Win The Mobile Payment World? Did Apple Pay Just Take The Advantage?

In October of 2014, Apple brand fans welcomed the rollout of Apple Pay with great enthusiasm. The Verge's Dieter Bohn called Apple Pay, "Apple's most revolutionary product... a classic Apple moment of simplification and integration."

If you remember, the big retailers (Walmart, Target, etc.) were somewhat suspicious of Apple's mobile wallet announcement, noting previous failed attempts by others to build mobile payment services. 

However, these retail giants expressed that if anyone could be successful with mobile pay, it would be Apple. Businessweek's Joshua Brusten wrote, "Apple has a history of letting "first movers" fail with the first version of a product before releasing a more polished product of their own.

The landscape of Mobile Payment has expanded - soon to become a war?

Much as happened to the mobile wallet world since October of 2014. Now we have Google and PayPal, along with Samsung and Android - many are joining the fray. Walmart and Target have also formed the Merchant Customer Exchange (MCX), a consortium to build their own version of the mobile wallet (CurrentC). The mobile wallet platform has grown tremendously in popularity with consumers and merchants alike - all thanks to Apple Pay.

The mobile wallet platform has grown tremendously in popularity with consumers and merchants alike - all thanks to Apple Pay.

Mobile wallet technology uses "NFC", or near-field communication chips, which are embedded inside smartphones. The NFC chips allow smartphone users to make payments "remotely", with the payment transaction made through communication between the phone and the credit card processor (remotely means "inches away"). Mobile pay is being promoted as a more secure transaction, and more convenient.

Mobile pay is being promoted as a more secure transaction, and more convenient for consumers. But is that really the case?

What are the benefits of Mobile Payment for the Consumer?

The main benefit of the mobile payment technology is supposed to be "convenience and ease", especially if this technology can be used to make online purchases. According to James Westers, a researcher for IDC Financial
Insights, mobile pay is intended to make all payments, through any system, more convenient. According to Wester, in-store purchases made through mobile wallets in 2015 is set to reach $15 billion

According to James Westers, a researcher for IDC Financial Insights, mobile pay is intended to make all payments, through all payment systems, more convenient. According to Wester, in-store purchases made through mobile wallets in 2015 is set to reach $15 billion worldwide. 

Wester stated, "the big issue for all of the mobile wallets is whether or not they are providing a real benefit to consumers - and that means a benefit beyond what current payment methods provide. In-store isn't a big hassle for consumers using plastic. But the promise of a more secure transaction - and mobile wallets are more secure - is of limited utility to consumers since they have basically zero liability for fraud anyway."

So, if mobile pay isn't more convenient than plastic, and consumers are not worried about security, what will be the major reason mobile payment systems become more popular with consumers? According to the Wester, the appeal will come through eCommerce.

Wester says that if the "definition of a mobile payment expands to include digital (online) purchases, the market opportunity for companies like Apple will approach the trillions. Wester stated, "the benefit of mobile wallets to consumers is really online where making payments - and entering card numbers, name, bill-to-address, etc., can be maddening."

According to Juniper Research, the mobile pay market will have 200 million mobile wallet users worldwide by the end of 2016. 

Who will win the Mobile Wallet War?

So, who is winning the mobile wallet war? Is it PayPal, Android Pay, or will it be the Walmart-Target consortium? The thought is that Apple Pay and Android Pay have the advantage. Their mobile pay application comes preloaded on their smartphones, which gives them a distinct advantage.

It took me about 3 minutes to set up Apple Pay on my phone. And now with so many merchants and banks accepting Apple Pay, I believe mobile pay is much more convenient than plastic. It will just be a matter of time before we think back and laugh about the "good ole days of plastic".

For more on the war of mobile pay, see Fortune's article, "Mobile wallet war heats up with Samsung Pay." Also, Tech Time's article titled, "PayPal Arrives In The US: Apple Pay, Android Pay, Samsung Pay All Supported"

Apple Pay Gains Support for BJ's Wholesale Club Credit Cards and 66 New U.S. Issuers

Original post found on MacRumors.com by Joe Rossignol

Apple updated its Apple Pay participating issuers list today with support for BJ's Wholesale Club store cards, including the BJ’s Perks Plus and Elite MasterCards, and 66 additional banks, credit unions and financial institutions in the United States.

To read the remainder of the article, click the "Next Page" button below.

 Apple Pay vs. Android Pay

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