Mobile Payments Update

It's been a while since I wrote about the state of mobile payments. MCX's QR payment CurrentC has been officially postponed (read: dead) and has everyone wondering what took them so long to kill it.

Will Walmart Pay have the same fate? Unlike CurrentC, Walmart already has a massive customer base and their mobile application doesn't solely rely on the payment system. Walmart can have greater success as it can add incentives (e.g. deals) for customers to use Walmart Pay.

Android/Apple/Samsung Pay continue to add compatible banks to their services. Samsung Pay is pushing their gift card capabilities by offering customers discounted gift cards (meanwhile, trying to get people using Samsung Pay in the first place).

The advantage Android and Apple Pay has over Samsung Pay is the native integration to their mobile OS. This will be significant in the future as Samsung Pay's only distinct feature, LoopPay mimicking a card swipe, will be obsolete in a year or so. In the long run, Android/Apple Pay will provide a broader user experience in the physical and digital environment. With just a pin or fingerprint reading, users will be able to pay for anything in a store or online. It's going to be a challenge for Samsung Pay to stay a main competitor in the future as Android and iOS dominate the mobile market.

While we have yet to see what Apple has in store at WWDC, Android Pay integration looked seamless at Google I/O, particularly with native instant apps (no need to download the app). The friction is just a fingerprint reading; this can be dangerous for impulse shopper. Google also announced Android Pay compatible ATMs with Bank of America.

What is beyond removing friction for payments? Integration businesses (including in messaging platforms and bots) and getting customer information. One way would be not have to provide loyalty information during purchase or even not having to sign up for loyalty memberships at all.

On the merchant side, there has to be more support for NFC payments. It'll take time and services like Square will help, but I'm surprised by how many businesses lack the capability in the Northeast. It'll be a game changer when public transportation systems accept NFC payments.

Walletlessness is slowing coming.