Digital Wallet – Now Standard Features on Smartphones
The fight to own digital wallet is on and 2016 is foreseen as a vital year for mobile payments and according to eMarketer, its total transaction values reaching 210%. Mobile wallets such as Android Pay, Apple Pay, Samsung Pay as well as MCX would now be standard features on smartphones with more merchants adopting point-of-sale systems which would be accepting mobile payments.
Recently in a keynote, JPMorgan Chase had unveiled a payment service together with retail partners comprising of Wal-Mart, Shell and Target. Chase would be needing help and skipping into mobile payments would means competing with companies like Apple, Google, PayPal and Samsung.
Chase Pay seems to be the outcome of a new partnership with JPMorgan Chase and MCX, a multinational of major retailers which has so far been unsuccessful in gaining much transaction in digital payments. The app is said to be made available by mid-2016 and could be utilised for in-store, online and in-app purchases and would be available to all with a Chase credit, debit or a prepaid card account.
Chase Pay to Solve – Pain Points for Consumers
With this kind of scale it could be advantageous and according to CEO of consumer and community banking at JPMorgan Chase, Gordon Smith states that `Chase Pay tend to solve a number of pain points for consumers as well as merchants and will improve the customer experience driving down the cost of payments’. Besides scale, consumer trust could also help chase initiate adoption.
According to latest Phoenix study reported at Money20/20, it was observed that banks and card issuers, followed by PayPal did enjoy a trust benefit against other digital payment players. The research also found that 64% of smartphone payment app users or those preferring to try it would contemplate downloading a bank’s payment app.
Around half the number stated that they would ponder on trying Apple Pay or Android Pay.Google is keen on changing that relative level of comfort and Sridhar Ramaswamy, the company’s senior vice president of ads and commerce would be delivering a keynote wherein he would lay out a vision to drive mobile commerce adoption with Android Pay which is the newly re-launched Google Wallet.
Brought Together NFC/Tokenization/Biometrics
Google had partnered with American Express, Discover, MasterCard and Visa in order to assist them in integrating Android Pay in the U.S. and is also working with AT&T, T-Mobile and Verizon Wireless in training sales representative to get consumers in setting up with Apple Pay prior to leaving the store with a new device.
Apple however not officially represented at the event was also the focus of many surveys and panels.Brendan Miller, Forrester Research analyst praised Apple for kick-starting the mobile wallet fight with the launch of Apple Pay, believing that it is best positioned to win stating that they have the consumer base and they have the users.
He further added that they had brought together NFC technology, bringing together tokenization as well as biometrics and combining those three things in creating a frictionless consumer experience at the point of sale. PayPal, according to Miller has been at this longer than anyone else and they have more mobile users than any of these competitors Anu Nayar, senior director of communications and customer engagement comments that `as we move to a mobile first world, digital wallets would be moving from a nice have, to a must have, as people tend to tap rather than type for their purchases and PayPal innovations like One Touch could make it easier to buy from mobile.
