In recent months we can see several giants enters the mobile payments solution arena. One of them is Samsung which acquired LoopPay for $250M. This incredibly high sale is in their main interest to dominante a vast growing market. According to Forrester Research report Mobile Payments should reach $90 billion by 2017 and extend to $142 billion by 2019.
The top players are surely Google Wallet, Apple Pay, Samsung and PayPal. We can also notice some startup companies struggling to keep up the into the race like One Coin, Slide Pay (shut down) and others.
The consumer perspective
It is still a mystery when and how this service will be adopted by the masses. Currently we see mostly early adopters using the service. According to a research led by MasterCard the majority still believes mobile payments are more of a hustle then a benefit for them. They lack to see the advantages of having your wallet integrated into your mobile and giving you the control over your expenses.
When asked who do they think will dominate the Mobile Payments market we got mixed answers which led us to believe there is still no dominant brand. Although Google Wallet and Apple pay invest a lot at the moment to keep their service seems the best the battle as yet to be over.
The chart below shows who is the most trusted brand in contact-less payment services:
The banking perspective
Banks are the one who is facing the biggest challenge here and will probably determine where and when this market is going to evolve to. As they are still the biggest card issuer they can control whether in the upcoming years you will just get your new Credit or Debit card downloaded just like a new app into your mobile. The consumer will surely benefit the most as they will be able to switch credit cards very often and this will give them more control on their expenses.
Each bank can either partner with an existing Mobile Payments provider or to create their own proprietary mobile wallet using a third party startup or a white label service. They would also be able to use Google Android Pay framework.
At the beginning of September 2015, the Royal Bank of Canada has entered the battlefield to bring in smartphone payments into Canada. We’ve seen similar moves in the UK and in several countries in Europe but as of today the majority of Mobile payment transactions is still located in the US. Apple Pay and Google Wallet have popularized this service in the US as they battle to dominate this emerging market.
Please comment below and update us if Mobile Payments is becoming popular also in your country. Please state the country you live in and the name of the service provider to the Mobile Payment solution.