November 5, 2015
Using a smartphone to control our finances is not new, as most banks are launching their own mobile apps for clients to control their accounts on the fly. But the niche of mobile payments is really booming at the moment, with services like Apple Pay and Google Wallet emerging as the major alternatives for consumer payments. An example is Apple’s recent announcement that the company is partnering with American Express to take Apple Pay global, expanding the digital wallet into Australia and Canada, among other countries.
This move is quite strategic, aiming to counterbalance the launching of similar services by other companies. Other than the already known Google Wallet and Samsung Pay, LG recently announced that it is also working on a similar service, G Pay, and Microsoft plans to relaunch its Windows Wallet – even MasterCard is developing a system for wireless payments, specially aimed at different wearable devices.
“Consumers’ mass acceptance of digital wallets offers businesses a great opportunity,” said Tom Boyer, president of TSYS Merchant Solutions. “Adding another way to pay, especially one with the expected growth potential of digital wallets, can help businesses gain customers and increase loyalty. In the case of digital wallets, Gartner predicts the value of mobile payment transactions will reach $721 billion with more than 450 users by 2017.”
Apple Pay users are the most satisfied digital wallet users, with more than a third of consumers who own an Apple device using the service, according to a report by eDigitalResearch. The arrival of the Apple Watch supports the satisfaction numbers, about 80 percent of Apple Watch users use the smartwatch to make payments via Apple Pay.
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