3 key ‘tap to pay’ trends for 2016

21 January 2016

 

1. The mobile payments market will get far more competitive

In 2015, Apple Pay was sitting pretty as the only major mobile payments service available in the UK and the US, but all this is set to change over the next 12 months.

The slightly delayed launch of Samsung Pay will take place this year – although no date has been confirmed – and the technology company has just announced that it will launch its mobile payment platform in Australia, Singapore and Brazil as well as planned introductions in the UK, Spain, the USA, China and Korea.

Google, meanwhile, has announced a major expansion of its Android Pay system, to allow in-app purchases as well as ‘tap to pay’ functionality. Although only available in the USA at present, when it rolls out internationally, Android Pay will really shake up the mobile payment market – if for no other reason that it is compatible with a far greater number of phones.

2. Retailers will need to prepare for the future of contactless

There are two big developments that will affect contactless this year. Firstly, mandates by both MasterCard and Visa require all new payment terminals being implemented to accept contactless payments – with a view to all card machines having contactless capabilities by 1st January 2020.

Secondly, over the next 12 months we will gradually see retailers experimenting with high value contactless payments through mobile wallets like Apple Pay. However, there are a number of things that need to occur in order for this to become mainstream practice, not least certification by payment service providers to support this service. Many retailers will also require software updates to their chip and PIN terminal to open up contactless payments to new audiences and use cases.

3. Technologies will work together to enhance the payment experience

One of the biggest growth areas for ‘tap to pay’ in 2015 was the UK transport network; by September last year, 1 in 7 contactless payments was made on the London Underground.

However, mobile payments have not seen the same adoption, predominantly due to the fact that they aren’t very user friendly; there’s often a delay in the barrier processing the payment, which can lead to bottlenecks and bumping into people.

Here, there is a case for iBeacon technology working in tandem with mobile payments to improve the user experience. The beacon will detect a device as it reaches the barrier and ready it for a transaction. This same technique could be replicated in the store to welcome visitors as they enter and leave, or to send them special offers based on their location. 

3 key ‘tap to pay’ trends for 2016

 

1. The mobile payments market will get far more competitive

In 2015, Apple Pay was sitting pretty as the only major mobile payments service available in the UK and the US, but all this is set to change over the next 12 months.

The slightly delayed launch of Samsung Pay will take place this year – although no date has been confirmed – and the technology company has just announced that it will launch its mobile payment platform in Australia, Singapore and Brazil as well as planned introductions in the UK, Spain, the USA, China and Korea.

Google, meanwhile, has announced a major expansion of its Android Pay system, to allow in-app purchases as well as ‘tap to pay’ functionality. Although only available in the USA at present, when it rolls out internationally, Android Pay will really shake up the mobile payment market – if for no other reason that it is compatible with a far greater number of phones.

2. Retailers will need to prepare for the future of contactless

There are two big developments that will affect contactless this year. Firstly, mandates by both MasterCard and Visa require all new payment terminals being implemented to accept contactless payments – with a view to all card machines having contactless capabilities by 1st January 2020.

Secondly, over the next 12 months we will gradually see retailers experimenting with high value contactless payments through mobile wallets like Apple Pay. However, there are a number of things that need to occur in order for this to become mainstream practice, not least certification by payment service providers to support this service. Many retailers will also require software updates to their chip and PIN terminal to open up contactless payments to new audiences and use cases.

3. Technologies will work together to enhance the payment experience

One of the biggest growth areas for ‘tap to pay’ in 2015 was the UK transport network; by September last year, 1 in 7 contactless payments was made on the London Underground.

However, mobile payments have not seen the same adoption, predominantly due to the fact that they aren’t very user friendly; there’s often a delay in the barrier processing the payment, which can lead to bottlenecks and bumping into people.

Here, there is a case for iBeacon technology working in tandem with mobile payments to improve the user experience. The beacon will detect a device as it reaches the barrier and ready it for a transaction. This same technique could be replicated in the store to welcome visitors as they enter and leave, or to send them special offers based on their location.