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Samsung Pay payment options now include PayPal

Mobile Commerce News – The latest addition to the Samsung Pay payment options is PayPal in the United States, according to an announcement from both companies. This strategic partnership involves an initial launch of the combined services in the U.S. but will eventually roll out in other countries, too, said the Samsung announcement.

The Samsung Pay payment options with PayPal will allow shoppers to make purchases at store checkout counters using this method. That said, it will also be possible to pay for goods online and in-app within PayPal’s Braintree merchant base. The decision to add PayPal to the various payment options available with Samsung’s mobile wallet makes sense to both companies. It brings PayPal users to the mobile payments app while it lets those users pay with that service in a wider range of location.

Like its rival mobile payments services, Samsung Pay uses NFC technology, which is compatible with many existing point of sale (POS) checkout technologies. In this way, the tap of the smartphone against the reader can mimic the use of a traditional credit or debit card. This makes it possible for Samsung Pay to function at virtually any location that accepts credit cards in the United States.

Still, neither Samsung Pay nor any of the other major mobile wallets are among the most popular payment technologies used in the United States. A recent mobile payments survey conducted by Boston Retail Partners placed Apple Pay in the lead among mobile wallets in the United States. This makes sense as it supports the largest number of merchants in the country. At the moment, about 36 percent of stores in the United States accept Apple Pay, which is a striking increase over the 16 percent that accepted it in 2016.

That said, PayPal was in second place, at 34 percent and consumers could use Samsung Pay payment options in 18 percent of U.S. stores.

Read full article: Samsung Pay payment options now include PayPal

In Tie-Up With Samsung, Paypal Holdings Inc. Aims For New Heights

Library for Smart Investors – Paypal Holdings Inc. (NASDAQ:PYPL) has not relented in its pursuit to dominate the global payment platform via collaboration after announcing that it is extending its strategic partnership with Samsung. Under the partnership, Samsung Pay users will be able to use PayPal as their preferred payment method be it in-store, online or in-app.

Such access will be available for all U.S.-based Samsung Pay users initially and will expand to other countries soon. In addition, merchants will be able to accept Samsung Pay as a payment method via PayPal’s Braintree Direct service. The company deems grabbing a foothold in mobile as critical to its future. It processed about $102 billion in mobile payment volume, in 2016 and 2 billion mobile payment transactions.

 

PayPal has found a stiff competitor in the payment arena with the introduction of Apple Inc.’s (NASDAQ:AAPL) Apple Pay payment service, and this tie-up with Samsung could serve as the key to top that race.

A survey from Boston Retail Partners on mobile payments, for instance, determined that Apple Pay holds the biggest percentage of supporting U.S. merchants, with 36% accepting the service, increasing from 16% in 2016. The company nabbed the second spot with a 34% acceptance rate in the survey released earlier this year, while Samsung was at sixth with 18%.

Read Full Article: In Tie-Up With Samsung, Paypal Holdings Inc. Aims For New Heights

PayPal to become a payment option in Samsung Pay, including in-app, online and in-store

TechCrunch – Samsung users will be able to choose PayPal as their preferred method of payment in-app, online and in retail stores through the Samsung Pay mobile payments platform, the companies announced today. The strategic partnership will initially be available to Samsung Pay users in the United States before expanding to other countries, says Samsung.

In addition to supporting PayPal at point-of-sale via Samsung Pay, the deal will also see Samsung Pay being added as a method of payment in-app and online for PayPal’s Braintree merchant base.

The move to connect PayPal’s wallet with Samsung Pay will open up PayPal to millions of stores, Samsung and PayPal both noted. Its mobile payments technology, a rival to Apple Pay and Google’s Android Pay, works both with NFC point-of-sale system and those using traditional mag strip technology. Because Samsung Pay supports Magnetic Secure Transmission (MST) technology, it can replicate a card swipe – allowing Samsung Pay to work nearly anywhere that payment cards are accepted.

That said, Samsung Pay is not yet one of the most-used payment technologies in the U.S., according to recent data.

According to a Boston Retail Partners survey on mobile payments released earlier this year, Apple Pay now has the largest percentage of supporting U.S. merchants, with 36 percent accepting the technology, up from 16 percent the year before.

PayPal was a close second with 34 percent acceptance, followed by MasterCard PayPass (25%), Android Pay (24%), Visa Checkout (20%), Samsung Pay (18%), Chase Pay (11%) and private label mobile wallets with 4%.

To increase its adoption in-store, PayPal last year partnered with major stakeholders like Visa and MasterCard for store payments. And in April 2017, PayPal said it would work with Android Pay as well, to support both mobile payments in apps and those in brick-and-mortar retailers.

In addition, PayPal just last week announced an expanded relationship with Apple, which allowed the payments platform to be included as a payment option for App Store purchases that’s now accessible via Apple’s mobile devices, both in the U.S. and in 11 new markets. The news quickly sent PayPal’s stock soaring.

Read Full Article: PayPal to become a payment option in Samsung Pay, including in-app, online and in-store

Contactless Payments to Hit 150M Users in 2017

Credit Union Times – The number of Apple Pay, Samsung Pay and Android Pay users is about to hit 100 million and should top 150 million by the end of 2017, according to new data from fintech analysis firm Juniper Research.

Apple, Samsung and Google (which operates Android Pay) owned 41% of the contactless payments market in 2016 – double their 20% market share just a year earlier, according to Juniper. By 2021, the three companies will likely own 56% of the market, with a combined user base of more than 500 million users, it said.

Apple Pay isn’t the only player in the market, however. Boston Retail Partners also said 24% of North American retailers now accept Android Pay and another 18% expect to begin accepting it in the next 12 months. Just 18% of retailers currently accept Samsung Pay, though another 11% expect to begin accepting that payment method in the next year as well, it said.

“There are a multitude of mobile wallets and payment apps on the market today, and the arena keeps changing,” Boston Retail Partners wrote. “In the past year, we have seen the demise of the merchant-backed CurrentC and the rise of Walmart Pay. While adoption had generally been slow, this year we saw a big jump in adoption of some of these mobile payment options. This is yet another way to personalize and enhance the customer shopping experience by bundling loyalty and other features with a branded mobile payment app.”

Education and rewards will likely fuel much of what comes next, it added.

“We have found repeatedly that not only are consumers unsure of how and when mobile payments can be used, but even more telling, associates are unsure,” it added. “For mobile payments – or mobile wallets – to succeed, there must be further education at the point of sale to ensure that a transaction using a mobile device is not longer or more complicated than traditional payments methods for either the customer or associate. The other critical factor is explaining the value of tying mobile wallets to loyalty rewards programs. Customers need to feel that utilizing mobile payments enhances the shopping experience and that they are being rewarded for the experience – this will enable a win-win experience for retailers and customers.”

Read Full Article: Contactless Payments to Hit 150M Users in 2017

Is the rocky road to EMV retail adoption getting smoother?

CIO – There was plenty of confusion to go around in October 2015, with only a small percentage of retailers ready to roll when the deadline passed for them to become EMV-compliant by installing new EMV-capable credit card readers and acquiring certifications from various payment networks.

Now that over a year, and two holiday seasons, have passed by, the question is: Where does retail stand with EMV? The answer, says experts, is that it’s been a rocky road, but there have been improvements in adoption and an ongoing evolution in implementation.

The good news is, consumers are starting to adapt to the new normal — their first instinct now is to insert a chip, not swipe. In addition, Visa and Mastercard implemented new quick-chip technology last summer, to make the processing time faster for consumers.

“One of the biggest complaints off the bat was that EMV was too slow, taking 10-15 seconds,” says Perry Kramer, vice president and practice lead at Boston Retail Partners. “Now the EMV transactions have really gone back to the same speed as what it used to be with swipe transaction — from the consumer point of view, it has sped up dramatically.”

Retailers, on the other hand, have struggled to get up to speed with EMV and have dealt with a variety of challenges, particularly due to vendor delays and the liability shift that has left them on the hook for chargebacks. “Those that weren’t ready really got thrown into panic mode,” Kramer says. “The amount of chargebacks, in terms of dollars and quantity, far exceeded anyone’s expectations.”
Read Full Article: Is the rocky road to EMV retail adoption getting smoother?

Samsung Beats Apple to the Mobile Payment Punch in India

The Street – Samsung Electronics, the world’s largest smartphone maker, has launched its mobile payment service in India.

Samsung Pay is not only collaborating with 5 traditional banks including Standard Chartered banks, credit and debit cards from MasterCard (MA) and Visa (V) for this service but also allowing users to add their Paytm wallet accounts in the Samsung Pay app.

The launch is a step ahead of Apple (AAPL) , which hasn’t launched Apple Pay in India yet despite CEO Tim Cook’s intention to bring such services to the country.

“We are also looking at things like bringing Apple Pay. I met one of the key banks and tried to understand how their view of mobile payments would play out,” Cook told The Indian Express during a visit to India in May last year.

Besides the support of big banks, Samsung’s partnership with India’s largest mobile wallet player Paytm is also likely to serve as a big push for the South Korean tech giant’s entrance into the Indian digital payment market. Paytm is backed by Chinese e-commerce giant Alibaba (BABA) and its finance affiliate Ant Financial.

“The timing of the launch is very good given the ‘shock’ to the cash economy following demonetization. It is much easier to get people to download and use the Samsung Pay feature,” said Santosh Rao, head of research at Manhattan Venture Research. “India’s digital payments market is expected to reach $500 billion by 2020 on the back of 1.2 billion mobile subscribers, which makes it a compelling opportunity to tap into.”

In an attempt to crack down on corruption and bring regulation into the Indian economy, India’s Prime Minister Narendra Modi announced on Nov. 8 last year that 86% of the country’s currency would be rendered null and void in within two months, catapulting India onto a path to becoming a digital economy. But India is far from being the only country with the goal of turning itself into a cashless society, government authorities across the world have slowly rolled out demonetization programs.

Experts believe that the winners in the digital payment industry will play an important role in transforming the way people live, consume and conduct business in the foreseeable future. And the race is already accelerating as some of the biggest players in the industry Apple Pay, Samsung Pay, PayPal (PYPL) , Android Pay, Alipay and Tencent’s Tenpay execute their expansion plans across the globe.

In recent years, the ubiquity of smartphones and development of financial technology have led to a multitude of mobile wallets and payment apps to appear in the market. Mobile wallets allow customers to shop without physical wallets and retailers to offer perks such as loyalty rewards programs, which enhances security, convenience and the overall shopping experience on both sides. But retailers often identify and stick with one or several particular brands rather than accepting all payment methods available.

According to research conducted by retail consulting firm Boston Retail Partners, Apple Pay is now accepted by 36 percent of merchants in the United States, followed by PayPal as the next most widely-accepted payments service at 34 percent, and Samsung Pay is currently accepted by 18% of all merchants. While this makes Apple Pay one of the most widely available mobile payment methods in the country, its fortune in emerging markets like China which boasts the world’s largest proximity mobile payments market, is less than impressive.

Read Full Article: Samsung Beats Apple to the Mobile Payment Punch in India

Apple pay currently dominating mobile payments market, could affect retail industry in the long run

O’Grady’s PowerPage – Apple Pay might just wind up on top. A few years ago, when the technology was first introduced, it seemed like a vague idea. Today, according to new survey data released by Boston Retail Partners, Apple Pay is not only booming, it’s the mobile payments standard, surpassing PayPal, which had nearly a decade headstart. This, despite a much smaller market share than Android, and this despite continued ignorance as to the very existence of Apple Pay among consumers.

It may also be good for retailers in the long run.

In spite of a slow start, as of October 2016, Apple Pay transaction activity went up 500 percent over its combined 2015 numbers. While some data suggests Apple Pay interest has slackened since its 2014 launch, this data almost certainly reflects an early surge of interest at the launch of Apple Pay, followed by a maturing, growing base of committed, active users.

As the Boston Retail Partners’ survey indicates, roughly the same percentage of retailers now accept Apple Pay (36 percent) as accept the consumer-unfriendly EMV (“chip and dip”) cards (37 percent). More importantly, for Apple, that 36 percent exceeds the percentage of retailers that accept rival mobile payment systems like Android Pay (24 percent) or even PayPal, which launched in 2006—eight years before Apple Pay.

Apple Pay is expected to hit nearly 50 percent of market penetration by retailers by the end of 2017.

Read Full Article: Apple pay currently dominating mobile payments market, could affect retail industry in the long run

Starbucks Japan creates keychain enabled for contactless payments

Mobile Commerce Daily – Starbucks Japan’s partnership with local fashion brand Beams has produced an interesting entry into a precarious wearables market: a branded keychain that customers can use to pay for their drinks, similar to its ubiquitous mobile payments product.

The keychain is covered with a leather fob branded with the Starbucks logo, and is available in a variety of different colors. Starbucks has not announced any plans to expand the product outside of Japanese locations.

“At the end of the day success for all of these new payment technologies is driven by consumer adoption,” said Perry Kramer, vice president and practice lead at Boston Retail Partners. “Vendors can create great looking and functionally-rich technology; however, if it is not frictionless and does not add value it will fail in the market.

“I do see some variant of this evolving in the US market,” he said. “One of the challenges for retailers and vendors in the US is the need for education and training for a very large population of associates.

“The explosion of mobile wallets offering inconsistent user experiences over the last few years has made it difficult for retailers to continually train associates on what they accept and how to accept them. Until retail associates are fully educated and trained, we run the risk of a bad customer experience which will translate to slower adoption rates and potential failure.”

Read Full Article: Starbucks Japan creates keychain enabled for contactless payments

Apple Pay dominates mobile payments, and it could change retail forever

TechRepublic – Apple Pay is increasingly good for Apple, but it’s arguably a boon to a struggling retail industry, as well. Just a few years ago Apple Pay was a vague hope, a chance for Apple to diversify its burgeoning Services business, which was app and iTunes heavy. Today, according to new survey data released by Boston Retail Partners, Apple Pay is not only booming, it’s the mobile payments standard, surpassing PayPal, which had nearly a decade headstart. This, despite a much smaller market share than Android, and this despite continued ignorance as to the very existence of Apple Pay among consumers.

Apple Pay got off to a slow start, but it has been exploding over the last two years. In October 2016, Tim Cook noted that September’s Apple Pay transaction activity was up 500% and surpassed all of fiscal year 2015…combined. While some data suggests Apple Pay interest has slackened since its 2014 launch, this data almost certainly reflects an early surge of interest at the launch of Apple Pay, followed by a maturing, growing base of committed, active users.

While those users may have struggled to find retailers that accept Apple Pay in the past, this is no longer the case. As the Boston Retail Partners’ survey indicates, roughly the same percentage of retailers now accept Apple Pay (36%) as accept the consumer-unfriendly EMV (“chip and dip”) cards (37%). More importantly, for Apple, that 36% exceeds the percentage of retailers that accept rival mobile payment systems like Android Pay (24%) or even PayPal, which launched in 2006—eight years before Apple Pay.

All of which is great for Apple, of course, but it’s arguably good for retailers, as well. Andreessen Horowitz partner Benedict Evans has posited that Apple Pay is “much more about driving repeat iPhone purchases” than about changing the payments industry, and that may be Apple’s true motivation. The collateral benefit, however, is very much to make retail much more flexible.

According to Boston Retail Partners’ survey data, retailers are already planning to rethink how they do business, both in terms of how they identify with customers and how they enable the shopping experience, with Apple Pay supporting this shift:

· 75% plan to use Wi-Fi to identify customers with their mobile devices in the store by the end of 2019
· 80% will suggestive sell based on previous purchases within three years
· 89% will offer mobile solutions for associates within three years
· 84% will use mobile POS within three years

The first two bullets suggest an aggressive use of consumer data to target in-store marketing, with the latter two articulating a more fluid in-store experience. Given Apple’s consumer-friendly privacy stance, odds are good that Apple will influence, if not dictate, how these desires will play out in practice. As JCPenney omnichannel director Lance Thornswood said, “Apple doesn’t want 2016 to be like ‘1984’ any more than they wanted 1984 to be like ‘1984.’”

Read Full Article: Apple Pay dominates mobile payments, and it could change retail forever

Where Can I Pay by Phone?

Business 2 Community – Apple Pay, Android Pay, Samsung Pay. Mobile payments are here and they’re on the rise. A recent study from Boston Retail Partners noted that 36% of retailers participating in their survey accept Apple Pay, with 24% accepting Android Pay and 18% accepting Samsung Pay. In a recent earnings call, Apple CEO Tim Cook confirmed that Apple Pay transactions were up 500% year-over-year for the September quarter. Granted that includes app based payments, but you’d expect that proximity payments were moving the needle a bit too.

Interesting that coming off of the EMV liability shift these numbers aren’t bigger as many, if not the majority, of processors replaced legacy terminals with those that were both EMV and NFC enabled, which would lend you to believe that they could, in fact, accept NFC based contactless wallets like Apple Pay and Android Pay. With Samsung Pay, it’s mind-boggling as Samsung Pay works (well, over 95% of the time) anywhere that accepts a traditional magnetic stripe card.

So, is it that they don’t accept contactless payments, or just that they don’t know that they do? Working in the space, being an avid Apple user and appreciating the convenience of being able to pay with a tap versus a swipe or dip, I set up my Apple Pay account right when it was launched. Admittedly, it took me a while to find a place to use it. Whole Foods is my go-to as it always works there. In terms of other stores, I’ve had a variety of interesting experiences. One of the first places I attempted to use Apple Pay was a mid-sized, regional retailer in New Hampshire. I noticed that they had the Verifone MX series with the added NFC reader and the green light was on. Any normal person would have no clue what this meant, but working in the payments space, I knew it meant go for me – I could use my phone. Excited, I pulled out my phone and tapped on Apple Pay. The cashier looked at me and said, “We don’t take that.” I politely replied, “Actually, I think you do. I work in payments and I think that you can take Apple Pay with this piece of equipment.” She let me try and, boom, it worked. Success. She was excited as were the customers behind me.
Read more at http://www.business2community.com/small-business/can-pay-phone-01783223#tRwxyUQOdWE3W2By.99

Read Full Article: Where Can I Pay by Phone?