Posts

Here's Why Apple Is Poised To Outperform

Seeking Alpha – Cupertino-based Apple (NASDAQ: AAPL) has a long history of topping Wall Street estimates and the iPhone maker is set to repeat it after the closing bell today. According to Zacks Equity Research, the iPhone maker is expected to earn $1.86 per share on revenues of $51.2bn in the fiscal fourth-quarter 2017, up from $1.66 per share on $46.6bn in the year-earlier period. iPhone shipments, which constitutes between 60% and 65% of Apple’s sales, are projected to reach 46.4 million units in the fiscal fourth-quarter 2017, backed by accelerating sales of iPhone in China. This represents a 2.1% increase from 45.5 million units shipped in the year-earlier period.

While iPhone continues to be the major driver of its top line, Apple’s services segment consisting of App Store, Apple Music, Apple Pay and other services has become a major growth catalyst with over 185 million subscribers. With the release of iOS 11, the company expects to pull in more revenues from its App Store during the quarter. Revenues from iTunes, software and services are expected to be $7.6bn in the fiscal fourth-quarter 2017, up a staggering 20.4% from last year. Additionally, Apple is witnessing strong demand for iPad among schools driven by the wide range of multimedia features of iOS applications focused on the education sector. For the fiscal fourth-quarter 2017, iPad shipments are expected to reach about 10 million units, up 7.4% from the last year.

The iPhone maker is also giving stiff competition to the online payment giant PayPal (NASDAQ: PYPL) in the digital payment space. According to a new research from Boston Retail Partners, 36% of North American retailers are accepting Apple Pay, more than any other payment method, and another 22% plan to accept the Apple’s payment solution within the next 12 months. On the other hand, PayPal is currently being accepted at about one-third of North American retailers, and that is expected to rise to more than half within the next year – yet still short to take the No. 1 spot. Total transaction value of US digital payments is forecast to hit $738.3bn in 2017 and is expected to grow at an annual rate of 12.8% to reach $1,194.4bn by the end of 2021.

Read Full Article: Here’s Why Apple Is Poised To Outperform

Retailers should strive for integrated payments that span all channels

IT News Africa – Over the past 20 years, disruptive digital companies have upended consumers’ expectations of the shopping and payments experience. It started in 1999 when Amazon patented one-click shopping and has evolved over the years into the invisible instant payments options offered on mobile apps such as Uber.

To keep up with the pace of innovation among digital giants and start-ups, retailers will need to start looking at how they can use new technologies to transform their in-store experiences.

The new holy grail for retailers is to offer a truly integrated payments experience that spans in-app, online and in-store payments. Yet most retailers still have a long way to go. Although 85% of retailers see integrated commerce as a top priority, only 18% have implemented an appropriate system, according to a 2016 POS survey conducted by the independent retail management consulting firm, BRP.

Read Full Article: Retailers should strive for integrated payments that span all channels

Online fraud spikes 137% despite new chip-based security measures, study says

Fierce Retail – BRP’s Perry Kramer reveals that EMV processing is not enough protection against e-commerce fraud. According to a new white paper from BRP, The Payment Security Update: What’s New After EMV,” fraudsters have become more sophisticated and retailers need to adapt to protect customers’ payment cards and personal data.

According to BRP, EMV—which stands for Europay, Mastercard and Visa and is a global standard for chip cards—doesn’t offer enough data security and retailers need to be looking at end-to-end encryption (E2EE) and tokenization options.

In another recent survey by BRP, 68% of retailers reported implementing E2EE and 48% have implemented tokenization of payment data.

So why are more retailers not implementing these security strategies? The white paper states that the challenge is to deploy the best security, while at the same time maintaining corporate advances in omnichannel commerce initiatives. In other words, developing a synergistic payment and security strategy.

“While EMV has received most of the attention in the last few years, there are several other critical security strategies that play a much greater role in protecting sensitive payment card and personal information,” said Perry Kramer, vice president and practice lead at BRP. “It is imperative that retailers have the right strategies and controls in place to thwart the ever-increasing advances made by fraudsters.”

So why aren’t more retailers implementing these extra security measures?

Kramer explains that there are two large obstacles for retailers when they attempt to implement payment security strategies. The first is the ability to align the vision of a customer journey with the security and IT teams’ requirements and resources.

“In many cases, the business has not taken the time to step back and clearly define what they want the customer journey and experience to be,” he told FierceRetail. “This makes it impossible for the IT and security teams to create the environment that achieves the right customer experience and appropriate level of security.”

Read Full Article: Online fraud spikes 137% despite new chip-based security measures, study says

Online Fraud has increased 137% post-EMV – Are you Protected?

Online Fraud has increased 137% post-EMV – Are you Protected?

According to a new white paper from BRP, fraudsters have become more sophisticated and retailers need to adapt new security tactics to protect their customers’ payment card and personal data. The Payment Security Update: What’s Next After EMV white paper provides retailers practical tips on how to improve payment and data security across all channels.

“While EMV has received most of the attention in the last few years, there are several other critical security strategies that play a much greater role in protecting sensitive payment card and personal information,” said Perry Kramer, vice president and practice lead at BRP. “It is imperative that retailers have the right strategies and controls in place to thwart the ever-increasing advances made by fraudsters.”

EMV doesn’t really offer data security functionality, for that, retailers need to look to end-to-end encryption (E2EE) and tokenization. BRP’s 2017 POS/Customer Engagement Survey recently found that 68% of retailers have implemented E2EE and 48% have implemented tokenization of payment data. Increasingly, retailers realize that simply meeting PCI compliance standards is no longer sufficient to protect customer data.

“Hackers are becoming increasingly sophisticated, requiring organizations to re-analyze and revamp their current security protocols to adequately protect their customers’ payment and personal data,” said Ryan Grogman, vice president at BRP. “Retailers who have not implemented these technologies are at high risk, as the likelihood of being targeted by hackers increases every day.”

This white paper provides insights on the following topics:

  • Baseline Payment Security Measures
  • A Multi-Tiered Security Approach
  • The Rapid Growth of Omni-Channel Transactions’ Impact on Tokens
  • The Shift to Online Fraud
  • Increased Mobile Transactions Create Additional Security Complexities
  • Quick Wins to Beat Online Fraud
  • Quick Hit Protective Tactics

I encourage you to download and read the complete white paper:

Payment Security Update: What’s Next After EMV?

I appreciate your opinions and insights on this topic.  Please share your comments below.

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

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?

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

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