Page 72 - Pay Magazine s2014

digital money
M-Payments’ Next Mission
How Consumers use m-Payments
Among consumers who have made a mobile payment in the past 12 months (prior to the March 2015 research), mobile online/in-app and in-store purchases were the most common after bill payment.
Paid a Bill
Purchase In-App or Online
Paid In-Store
Received Loyalty Points
Sent Money
Received Money
Paid for Parking/Transit
Paid by Text Message
Withdrew Money from ATM
Sent Money Internationally
67% 56%
39% 33%
26% 20%
14% 8%
7% 3%
(N=405)
source: First Annapolis, 2015
0 10 20 30 40 50 60 70 80
70
And Apple Pay no longer is the only m-payments game in town. Rival m-payments services in- clude Android Pay and Samsung Pay, with MCX’s CurrentC launch- ing in beta this fall. (See sidebar.) Now all eyes are focused on which mobile wallet can gain scale fastest by maintaining merchant and issuer support, and earning repeat usage
from consumers.
For Apple Pay, the challenge
will be how to build on its first- to-market advantage. As the Oct. 1 EMV liability shift goes into effect, many merchants are upgrading payment terminals
to NFC-capable hardware, open- ing the gates to all m-payments services. And with m-payments services for Android handsets becoming broadly available from all wireless carriers, con- sumer demand may spike, ob- servers say.
“Right now, Apple iOS and Android together account for more than 90 percent of smart- phones in the U.S., so Android Pay’s introduction will basically double the potential user base for mobile wallets,” says Greg Burch, vice president of mobility, business development and in- dependent software vendor relationships for Ingenico Group. One thing is sure: The next 12 months will bring more available m-payments options than con- sumers have ever seen, and
it’s impossible to predict which will prevail.