Tag: google wallet

Samsung may break into mobile payments

| December 19, 2014

Samsung reportedly in negotiations with mobile commerce firm LoopPay

Google and Apple may soon have strong competition in the mobile commerce field. South Korean electronics company Samsung is reportedly in negotiations with LoopPay, a mobile payments firm based in the United States. While the two companies have not yet officially announced plans to work together, Samsung has been showing strong interest in the mobile commerce space recently. The company sees a great deal of promise in mobile payments and could begin entering into the market within the next few years.

Android devices continues to help mobile commerce grow

Mobile commerce has thrives on the Android platform over the past year. Approximately 83% of the smartphones shipped during the last quarter are powered by the Android operating system, and many of these devices come equipped with mobile payment applications, such as Google Wallet. The Wallet platform has yet to find success among consumers, which has led many to use a wide variety of payment applications. Samsung could capitalize on this by offering a new payment service that would also come pre-installed on Android devices.

Samsung is no stranger to mobile payments

samsung - mobile paymentsThough Samsung has not made an official entry into the mobile commerce market with its own payment service, the company is no stranger to the market itself. In 2012, Samsung partnered with Visa to released a special version of the Galaxy S3 smartphone, which supported Visa’s payWave technology. Last year, the companies expanded this partnership, bringing payWave supporting devices to 40 European countries. Rumors suggest that Samsung has also begun working with PayPal to support mobile payments on wearable devices.

Apple may find a strong competitor in Samsung

If Samsung decides to enter into the mobile commerce market, it may become Apple’s most significant competition. Apple released its own mobile payments service earlier this year, which has won praise among retail organizations and consumers alike. The service is only available for one iOS device, however, which has limited its appeal to some consumers. A platform developed by Samsung would likely be available for numerous Android devices, many of which Samsung has developed itself.

Starbucks is the leader of mobile payments in the US

| December 18, 2014

Starbucks continues to show strong position in the mobile field

Starbucks is leading the way when it comes to mobile payments. The company has emerged as a sort of unexpected competition for Google, Apple, and others that have invested heavily in mobile commerce. Google was among the most aggressive companies to enter into this market with its Wallet platform. Apple followed suit years late with Apple Pay. Neither of these services have managed to become mainstream successes in the mobile commerce field, but Starbucks’ mobile payment app has.

90% of all mobile payments made in the US in 2013 were done in Starbucks stores

In 2013, 90% of all mobile transactions made in the United States were conducted in Starbucks stores, according to CEO Howard Schultz. Mobile payment volume is also growing by 50% every year, with more than 7 million mobile transactions being conducted at stores every week. Mobile payments now account for 16% of all transactions handled by Starbucks. There have been many questions regarding how Starbucks has managed to find success when competing against large companies like Google and Apple.

Loyalty program provides customers with an incentive to participate in mobile commerce

Starbucks Coffee - Mobile PaymentsOne of the ways Starbucks has managed to establish such a strong position in the mobile commerce space has to do with the incentives it gives consumers to use its mobile app. The company has been using incentives to encourage consumers to use its own payment solutions for several years now, and these incentives have become part of the company’s mobile strategy. Starbucks’ loyalty program provides rewards for those that make mobile payments, which has proven quite popular among consumers.

Convenience is key to finding success in the mobile commerce field

Starbucks also boasts of a prime environment in which mobile payments can thrive. Many of the people that visit Starbucks stores want to take advantage of fast service, and the Starbucks mobile app can help with that. With the app, customers can place orders before they even enter a store, and pay for these orders quickly from their mobile device. By emphasizing convenience, Starbucks has managed to find success where others have failed.