A comparison of 3 biggest digital wallets globally for 1-Click Checkout

Let’s Talk Payments have a done a quick comparison on big digital wallets and their 1-click checkout services. Even though the services aren’t available on all markets, it gives you an insight and idea on where I believe we are heading, as of user experience in digital and mobile payment and checkout services.

See the comparison table and read comments about the three 1-click checkout services here.

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2015 – great year for FinTech

2015 was a great year for FinTech to get funding. This infograph summaries the year.

  • US got $4,4B, 5x of European total
  • Total Europe total $1B, where of London took 68% (!)

I believe 2016 will be yet another great year for FinTech. This year we will see investments, lead by banks “wakening up”, big merchants and the cards networks investing in mobile & digital payments.

Contactless payments will have very nice growth and will drive mobile payments and mobile value adding services like digital receipts, mobile gift and loyalty cards, coupons and offers and ticketing.

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Will Star Pay take over mobile payments?

Will Starbucks very successful mobile payment solution, soon in a “general” mobile payment version Star Pay, take over mobile payments? Probably not, and as likely as if one of Sweden’s most used mobile payment app Espresso House, would go general with an “Espresso Pay”. Interesting is what is happening with the MCX consortia in USA and its awaited for CurrentC mobile payment….and with members in the consortia now launching own services like Walmart Pay and soon Target Pay. The number of mobile payments services (and increased fragmentation!) in USA is still growing…but I believe 2016 is the year when we will see consilidation over there. So, how many mobile wallets/payment app/services will we have, one wallet or thousand apps?

I would like to have :
– One or maybe two, “general” mobile wallets, incl a general payment service (eg. my virtual cards) and my other wallet services (my loyalty cards, gift cards, tickets, membership cards and coupons & offers)
– Max 5 mobile payment apps, for commuting, for parking, P2P, etc.
– Then I will have “many” mobile apps, where (I hope) many will have eto (easy to use, “few clicks”) & secure inapp mobile payments

Read more about Star Pay & Walmart Pay here

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Payments are hot, hot, hot. Two out of three banks will increase investments in 2016

Investments in mobile payments, contactless cards & virtual cards and in real-time payment transactions will boom in 2016. Banks to take the lead as of Ovum research.

I also believe we will see nice growth in inapp mobile payments, digital & mobile wallets, mobile cloud-based payments and not to forget in mobile VAS like digital receipts, mobile/virtual gift cards & vouchers, loyalty & membership cards and of course a continuous growth in mobile coupons and offers.

Will also be interesting if we during 2016 could see solutions for cross-border authentication and real-time payments. And when/will Zapp launch in UK, MasterPass go live for in-store payments, CurrentC (by MCX) be launched, what country/countries Apple Pay will launch in Europe after Spain, and when will Android Pay and Samsung Pay and LG Pay come to Europe? And finally when/will Sony, HTC and the other mobile manufacturers launch their own wallets?

Plus more, giving that we all will have a very interesting new year to look forward to.

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When is Apple Pay coming to your country?

Since the launch of Apple Pay in USA in October 2014 few countries has been added. UK was added in July this year and latest countries launched is Canada and Australia. Apple has also told that it will launch in Singapore, Spain and Hong Kong in 2016.

So how is Apple choosing markets for Apple Pay and in what order? And why is Spain second in Europe and not high Apple use countries like the Nordic countries with very high market shares, or large European countries like Germany, Italy and Poland?

I believe Apple goes after only a few criteria’s, where the infrastructure and readiness of enabled contactless payment terminals is the most important one. Spain has most enabled NFC-terminals in Europe, approx 600k of Europe’s total of 2,5M, and is therefore next country in line.

Other countries with nice installed base are Poland (350k), France (405k) and not to forget Turkey, with over 600k enabled NFC-terminals. Germany and Italy is still counted for as “cash countries” and has surprisingly low volumes, 60k (!) in Germany and 150k in Italy. But signs is that at least Germany will enable quite some over the next two years. 

Two more criteria for Apple to choose country is of course penetration of smartphones and market share, where the Nordic countries and BeNeLux must be interesting. Third criteria is “how easy” it is for Apple to get the share of the interchange fee from the local banks. With the new interchange cap valid in EU from this month, stating max 0,2% for debit cards and max 0,3% for credit cards, it may be hard for Apple to get the rumoured 0,15%..

My guess is that next European countries to be announced for Apple Pay is France and Poland.

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Contactless payments set to soar across Europe

Interesting growth in contactless payments in Europe. Data from research house RBR shows that there where 223 million contactless cards in issue in Europe by end of 2014, up 65% from 2013 and representing 15% of all payment cards in circulation. RBR forecast that this will triple to almost 700 million contactless cards by 2020, then representing 40% of total cards volume.

Contactless-enabled EftPOS terminals is at 2,5 million in Europe, representing 16% of all terminals in the region. This will increase rapidly due to mandates from MasterCard and Visa. This mandates state that new terminals should be capable of accepting contactless transactions by the beginning of 2016 and all existing terminals should be converted by the beginning of 2020.

Comments: The MasterCard mandate has at least one exception, where Sweden is “allowed” to be one year later for all new terminals to be capable for contactless. I believe that the fast roll-out of contactless cards and terminals will really help the roll-out and use of attractive mobile payments and value added services based on NFC technology.

Read article with more figures here.

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Digital wallet war in Sweden is heating up

Today MasterCard has launched its long awaited for digital wallet MasterPass in Sweden. Users can now via its preferred bank, start and use their own digital wallet for a more secure and easy checkout when doing online purchases. Later on the wallet can be used for contactless mobile payments in physical stores.

Bildresultat för masterpass seb

Users can put all their cards in one wallet, select preferred card and delivery address, which means that they don’t have to enter card number or adress info when doing a checkout at the webshop. MasterCard has selected to use the very popular and the most used authentication method in Sweden, Swedish Mobile bankID, for the authentication of a MasterPass purchase.

From start Nordea, SEB and Swedbank will issue MasterPass wallet with ICA Banken and Resurs Bank soon to follow. I believe that we also soon will see Handelsbanken to jump on the bandwagon.

 

 

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