Apple has been courting banks in China since last year, trying to get them on board with the company’s new payment system, but so far most of that work has proved fruitless. UnionPay, the only bank allowed to make interbank bank payments in China, has yet to sign up for Apple Pay, and talks with eight other banks have gone nowhere as well. In a country that’s eager for Apple products this is especially troubling. Why all the pushback? According to MarketWatch, Chinese banks believe Apple is simply asking too much money for its mobile payment transactions. [Read more…]
Apple Pay is planning to launch in Canada in November, 2015, and is currently in negotiations with six of the countries largest banks, which hold over 90% of retail accounts there. Canada is a particularly attractive market for Apple, because the company holds 34% of the Canadian smartphone market according to Catalyst, and many retail stores are already set up for contactless payment. A final deal has not yet been reached, however, because the banks are concerned about Apple’s fees, and security issues, according to the Wall Street Journal.
Mobile Payments: Revenue Models and Market Strategies,” a Thematic Research Report by Pyramid Research, examines the predominant service and revenue models in the mobile payments arena, as well as the market approach of selected players, in order to identify effective strategies and key success factors. The analysis is built upon in-depth case studies of selected mobile payments services around the world, including Alipay Wallet, Boku, Dwolla, LevelUp, RURU, Paym, Starbucks and Apple Pay.
Apple Pay is already available to many iPhone users, but the iWatch, which allows consumers to buy things with little more than a wave of the wrist, could significantly accelerate adoption among Apple customers and retailers. Assuming, that is, that users warm to the new payments technology enough to get over fears about stolen accounts. They should. Smartphone-based payments are typically more secure than credit cards. Why is that? [Read more…]
As it becomes clear that mobile payments will dominate peer-to-peer money transfers and point-of-sale transactions in the future, the battle for mobile payment market share is heating up.
Competition is stiff in this emerging market, and for good reason. The chart below illustrates the growth that is expected from mobile payments over the next few years, which is nothing short of impressive.
There are several key players in the battle for our mobile payment transactions. Let’s take a look at each one. [Read more…]
Some banks are seeing a growing incidence of fraud on Apple’s mobile-payment service as criminals exploit vulnerabilities in the verification process of adding a credit card, according to people familiar with the matter.
Banks are tightening the verification process in an attempt to curb the fraud, these people said, declining to be identified citing a confidentiality agreement with Apple.
The fraud issue was brought to light by Cherian Abraham, a payment expert who works with banks and retailers on mobile-payment strategies, in a blog post in late February. He said fraud “is growing like a weed, and the bank is unable to tell friend from foe.” [Read more…]
Long before Apple Pay, big brick-and-mortar retail chains were conspiring to sidestep the typical 2% to 3% fees they’re charged by credit card companies when consumers pay with credit. A company called MCX (Merchant Customer Exchange), spearheaded by Walmart, was started to build a mobile payment solution that would become an app called CurrentC that’s preparing to launch, but is already in the app stores.
OpenTable, an online restaurant reservations system released “Pay with OpenTable” feature with Apple Pay and will introduce it to diners in the Fall of 2014. [Read more…]