It’s 2017, so you’ve probably already heard of Apple Pay, Android Pay and Samsung Pay. If you haven’t, then here’s the low down. All three are ‘mobile wallets’ or ‘digital wallets’ that let customers make payments using their mobile device.

Debit and credit card information is stored in an encrypted digital form and utilises NFC (near field communication), which enables two devices (a mobile phone and an EFTPOS device) to connect to each other when in close proximity. Transactions are fast and extremely secure.

Is 2017 the year of the mobile wallet?

2016 was touted as the year that mobile wallets would go mainstream in Australia. Google launched Android Pay midway through last year and it’s now compatible with over 28 financial institutions including ANZ, ING Direct and Westpac. Samsung and Apple initially only partnered with a couple of banks but have since begun working with several more and 2017 will likely see a few new partnerships.

Australia has a high number of ‘tap n go’ card terminals and it is estimated that around two-thirds of Australians use contactless payments for goods and services. But despite being one of the leading markets for ‘tap n go’ globally, the adoption of mobile wallets hasn’t been as straight forward as expected.

Will mobile wallets replace cash?

Mass adoption of mobile wallets is likely to happen when they begin to offer additional benefits above and beyond a debit or credit card. This could include integration with identification, Medicare, Opal or loyalty programs.

According to research firm Research and Markets, the global mobile wallet market is projected to grow by 35.5 per cent from 2017 to 20211. The increased use of 3G and 2G mobile data and broadband globally being the biggest contributor to the growth of the market.

Whether mobile wallets will make normal wallets obsolete remains to be seen. Google have been reluctant to speculate and banks have no real reason to migrate their customers from cards to mobile payments as their profit margins are similar for both.

How will mobile wallets affect your business?

The introduction of mobile wallets is only going to increase the number of customers paying without cash. So, it’s now more important than ever that you are ready to accept all forms of payment. It’s essential that your business is as flexible as possible when it comes to accepting customer payments.

You can accept mobile wallets payments by using our Live eftpos device which supports all major NFC and contactless schemes.

You can find out more about Live eftpos ‘tap n go’ and contactless payment features here.

Read more about Samsung Pay, Android Pay and Apple Pay.

1. http://www.cxotoday.com/story/mobile-payment-market-to-grow-extensively-by-2020/

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Sam Edmond

Sam Edmond is Digital Marketing Director for Live group. His digital marketing experience includes roles in Auckland, London, and Sydney. Sam is a Kiwi and supports Arsenal F.C.