Samsung pay works toward universal acceptance

Samsung pay works toward universal acceptance

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Verifone announced that it was launching a software update for some of its point-of-sale (POS) terminals to ensure their ability to accept Samsung Pay.

Samsung is also partnering with several other POS terminal vendors, including Ingenico and First Data, to improve the Samsung Pay user experience at the POS. The Verifone update and other Samsung partnerships will help the firm work toward its goal of universal acceptance, according to a press release.

Ensuring high acceptance is critical to Samsung Pay’s success.

• That’s because Samsung Pay relies upon its ubiquity advantage over competitor mobile wallets. Samsung Pay is accepted at both magnetic stripe-based and NFC-enabled POS terminals. That means that, in theory, Samsung Pay can be accepted at almost any retailer, giving it much wider acceptance compared to its NFC-based competitors. Making sure that terminals that should be able to accept Samsung Pay can actually do so is critical to maintaining that advantage. 
• And wider acceptance could be critical in accelerating mobile wallet adoption. Because most mobile wallets aren’t widely accepted, users are struggling to form habits around the services — for example, a PYMNTS and InfoScout study found that the second-largest reason people didn’t use NFC-only wallet Apple Pay for a given purchase was uncertainty that it would be accepted at a given store. Wider merchant acceptance makes it easier for users to pay with a wallet on a more consistent basis, which could equate to more frequent usage, habit forming, and higher payment volume per user. 

Samsung Pay's wide availability is one advantage it has over Apple Pay, but the mobile payments ecosystem is far more complex than that.

John Heggestuen, managing research analyst for BI Intelligence, Business Insider's premium research service, has compiled a detailed report on mobile payments that analyzes how this landscape will transform in the next few years.

Samsung pay works toward universal acceptance

Here are some of the key takeaways from the report:

• In our latest US in-store mobile payments forecast, we find that mobile payment volume will reach $37 billion this year. This is about half our previous estimate for 2015. The downward revision is primarily the result of later-than-expected launches of major mobile wallets from big tech players.
• But by the end of the forecast period in 2019, we expect volume to reach $808 billion, or about 99% of the old estimate. Our forecast is still one of the largest in the industry, and we think mobile payments will catch on faster than other research firms suggest: Mobile payment capability is either already offered or about to be implemented at merchants accounting for a huge chunk of US payment volume.
• The number of people who make a mobile payment at least once a year will grow from nearly 8% of the US consumer population in 2014 to 65% by 2019. The growth in mobile payment users will largely be driven by mobile wallet initiatives from Apple, Samsung, and Google. When these are in place, 90% of the forthcoming smartphones in the US will come with mobile wallets preinstalled.
• Samsung Pay will be a huge driver of mobile payment volume. Unlike Apple Pay, Samsung Pay is compatible at virtually every payment terminal in the US, thanks to the company's acquisition of LoopPay. This will make it easier for early adopters to make a habit of paying with their phone.
• The sheer number of mobile wallets available or in the works from Apple Pay, Samsung Pay, CurrentC, Google Wallet, and others will drive mobile payment adoption as well. This will largely be the result of competitive pressure building between the companies and the bandwagon effect. Adoption will be self-reinforcing — the more consumers and retailers that use or offer mobile in-store payments, the more the behavior will catch on among others.

In full, the report:

• Forecasts US mobile payment volume and user base from 2014-2019.
• Provides an in-depth explanation of the assumptions and data behind the forecast.
• Analyses the asymmetric objectives of the key players in the mobile wallet space.
• Provides an update on the mobile payments industry including analysis of Samsung Pay, Google Wallet, and PayPal.

To get your copy of this invaluable guide, choose one of these options:

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The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of how mobile payments are rapidly evolving.