Skip to main content

Smartphone Payment Apps will Reach 5.3 Billion Devices

Mobile payment service app adoption is on the rise. According to the latest worldwide market study by IHS Markit, 3.4 billion smartphones will be ready for Apple Pay, Samsung Pay and Google's Android Pay by the end of 2017 -- that will increase to 5.3 billion devices by 2021.

Moreover, 11 percent of active smartphones globally will be compatible with Apple Pay; 61 percent with Android Pay; and three percent with Samsung Pay (which overlaps with Android Pay that's also available on Samsung smartphones).

Mobile Payments Market Development

"To reach these smartphones, Apple, Samsung and Google must strategically expand mobile payments services and build partnerships with banks and financial institutions," said Ruomeng Wang, analyst at IHS Markit.

By the end of the first quarter of 2017, Apple had launched Apply Pay in 15 international markets, Samsung had rolled out Samsung Pay in 14 markets, and Android Pay was available in 10 markets.

IHS Markit analysts believe that Apple and Samsung are leading the global expansion of device-based mobile payments services. Despite Apple Pay having a 10-month head start on Samsung Pay, Samsung has been catching up with Apple.

In fact, at CES 2017 in January, Samsung reported that the number of daily Samsung Pay users had doubled every week since the launch of their Samsung Rewards program in the U.S. market.

According to the IHS Markit assessment, mobile payments services can use their subscriber reward programs to engage retailers, banks and customers -- thereby adding co-branding value in terms of marketing spend and name recognition.

Outlook for Mobile Payment Market Growth

Apple and Google are working to make their mobile payments services the default payment method, tied to their own platform ecosystems. Currently there are 38 payments platforms and two million small businesses supporting Apple Pay on the web, which allows users to checkout their purchase online.

Apple Pay also is available at the App Store, and integrates with apps such as Uber, AirBnB, Lyft, Groupon, Instacart, OpenTable and Starbucks. In contrast, Android Pay enables users to make payments in Google Play, within numerous apps and on mobile web sites such as Dominos, Dunkin Donuts and Etsy in the U.S. market.

In South Korea, Samsung is working with local online shopping platforms to launch Samsung Pay Shopping. In March 2017, they partnered with Visa Checkout to expand the Samsung Pay reach outside South Korea.

Popular posts from this blog

Virtual Reality Market Set to Reach $100 Billion

Virtual Reality (VR) market growth is now finally coming to fruition. Thanks to current actions and market momentum, VR is approaching what can be considered critical mass. And, not a moment too soon. This growth momentum comes from new hardware and content releases, accelerating enterprise value recognition, and a significant metaverse wild card that could potentially lift adoption and usage. According to the latest worldwide market study by ABI Research, over 85 million VR Head Mounted Displays (HMDs) will be shipped in 2027 across consumer and enterprise segments, creating a $100 billion VR market that includes hardware, software, and services. Virtual Reality Market Development "Expectations have been high in VR for years, and even decades, without notable growth to show. That growth is finally coming over the next five years," said Eric Abbruzzese, research director at ABI Research . The barrier to entry is lower than ever, all while content performance and user experien

Human Resource Transformation Enabled by IT

Many senior executives are taking a proactive approach to digital business transformation in order to achieve their strategic goals. Delivering revenue growth and profitability is now imperative for every function, including Human Resources (HR). The top 3 priority HR technologies this year are skills management, learning experience platforms, and internal talent marketplaces, according to the latest worldwide market study by Gartner. "With a tumultuous global economy, HR technology leaders face a balancing act in 2023," said Sam Grinter, director at Gartner . "Leaders must anticipate greater levels of accountability and demand for measurable outcomes to justify new technology investments." HR Transformation Market Development Forty-four percent of HR leaders report driving better business outcomes is their number one strategic priority for HR technology transformation over the next three years. Growth in headcount and skills (26 percent) and cost optimization (17 p

How Savvy Pioneers Lead the Future of Work

Hybrid and fully remote work are inevitable in the Global Networked Economy where high-performance talent demands flexibility from employers. To enable these progressive work models, organizations are investing in a wide range of technologies to support more agile types of employment.  According to the latest worldwide market study by International Data Corporation (IDC), leading organizations will spend nearly $1 billion on the Future of Work (FoW) in 2023 -- that's an increase of 18.8 percent over 2022. Future of Work Market Development "Work models continue to evolve, but 37 percent of decision-makers in a recent global survey note that Remote and Hybrid work models will be an embedded part of accepted work practices, supported by a continued shift to the cloud, increasingly instrumented and interconnected physical workplaces, and intelligent digital workspaces," said Holly Muscolino, group vice president at IDC . According to the IDC assessment, organizations must mak