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Android Pay, Apple Pay battle continues; both see 8 percent transaction rates – report

Friday 5 February 2016 13:35 CET | News

Both Android Pay and Apple Pay saw 8 % transaction rates at bricks-and-mortar locations, a recent report shows.

According to Packaged Facts, other big players coming on the scene such as Walmart and Chase can present an upswing through their customer bases and ability to provide a reason for use, with 59 of consumers claiming no benefit as the reason for not using mobile pay.

With more than 79 % of respondents claiming that it is easier to use a credit or debit card at checkout, mobile payment providers need to create some sort of rewards system for users. For instance, Starbucks is known as a leader in the mobile retail industry, likely due to the fact that 80 % of users have earned its Star rewards through use of its mobile payments.

Mobile payments providers are also doing a poor job of convincing consumers these systems are just as safe, or more secure than traditional payment methods as 59 % claimed security was the main reason for not using mobile pay. However, there has been a small drop in this belief, as last year 69 % of respondents believed it to be unsafe.

Moreover, the report adds that Chase has a big opportunity to take the lead in the industry, as it has a substantial customer base and is providing a solution which combines NFC and QR code technology. Walmart Pay is also likely to create an upset, as it will be rolling out a mobile pay feature within its existing app, which means its 23 million active users will have access.

Therefore, retailers should seek to integrate mobile payments as an added-value component of their omnichannel payment and loyalty strategies. The key involves blending payments with loyalty programs and other add-value benefits, so that payments become a seamless part of a broader customer engagement experience.

What`s more, blending mobile payment options, in-app and at the register, with these broader set of options allows customers to pay any time, anywhere and to pay according to need, in-store, delivery and pickup, with the potential to get customer engagement and sales conversion rates. But they also provide retailers with data-driven payment and usage insight for targeting marketing and, depending on the type of wallet, can even help them manage customer payment method.


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Keywords: Packaged Facts, Android Pay, Apple Pay, mobile payments, mobile wallet, QR code
Categories: Payments & Commerce
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Countries: World
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Payments & Commerce






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