Tag Archives: mobile payment technology

Mobile Wallet War | Abtek

The Mobile Wallet War

Mobile wallets continue to gain popularity among consumers, but they’re struggling to gain wide-spread adoption amidst a market of competing platforms. A survey by Trustev showed that only about 20% of compatible iPhone users and 14% of compatible Galaxy users have ever used the mobile payment feature on their phone.

So what’s holding people back? According to recent reports, the top challenges facing mobile wallet adoption are fear of identity theft (68%) and merchant acceptability (33%). But, as security technology continues to improve and more and more merchants upgrade their POS systems, we expect these concerns to dwindle in the not-so-distant future.

With each new mobile payment platform launch, the payment landscape is gaining complexity. To help you get up-to-speed on the latest and greatest in mobile wallets, we’ve provided a comprehensive list of the current options and the pros and cons of each platform.

Apple Pay

Apple Pay | AbtekArguably the most popular mobile wallet platform to-date, Apple Pay, is a payment system that allows users to make purchases via their smartphone by hovering it near an NFC-enabled credit card terminal.

  • Pros: Apple Pay is accepted at more than 700,000 retail locations and is supported by 2,500 banks and credit card issuers. Transactions made through Apple Pay are tokenized, which maximizes data security. A fingerprint scanning feature also boosts security.
  • Cons: The provisioning process for adding a payment card to an Apple Pay account lacks security, which is causing credit card thieves to turn to this platform to make fraudulent purchases. Additionally, Apple Pay is not accepted at Wal-Mart.
  • Compatible Devices: iPhone 6/6s, 6/6s Plus and Apple Watch for in-store purchases and iPad Air 2, iPad Pro and iPad Mini 3/4 for online purchases

Android Pay (Previously Google Wallet)

Android Pay | AbtekAndroid’s answer to Apple Pay, Android Pay is a similar platform in which users can make payments from their smartphones to an NFC-enabled terminal.

  • Pros: By the end of the year, Android Pay is expected to be accepted at just as many stores as Apple Pay (more than 700,000) as well as in a large number of apps. The platform, powered by Google, also uses the secure payment process of tokenization.
  • Cons: Fingerprint scanning is not available on older Android phones.
  • Compatible Devices: Android phones that have NFC technology

Samsung Pay

Samsung Pay | AbtekSamsung Pay is a payment app that allows users to complete transactions via NFC connection or magnetic stripe.

  • Pros: Users are able to make mobile payments at terminals that are not NFC-enabled. The phones are equipped with technology that allows them to be “swiped” like a magnetic stripe card, making Samsung Pay is the most widely accepted mobile wallet.
  • Cons: The magnetic stripe feature doesn’t always work as well as intended.
  • Compatible Devices: Samsung Galaxy S6 and Samsung Note5 or later

Chase Pay

Chase Pay | AbtekJP Morgan Chase has partnered with MCX and is expected to launch a new mobile wallet platform, Chase Pay, in mid-2016. Instead of using NFC technology like its competitors, Chase Pay will generate a unique QR code for each transaction that the cashier can scan.

  • Pros: Not all terminals are equipped with NFC technology, so the fact that this platform uses QR codes will significantly increase its acceptability. Additionally, since Chase has partnered with MCX, the wallet may have an edge with retailers who are resisting Apple Pay, such as Wal-Mart, Target, Best Buy and Shell.
  • Cons: The QR code process may not be as simple and efficient as competing NFC methods.
  • Compatible Devices: The app is expected to work with most Android and Apple phones

On top of these mobile wallets, other digital platforms, such as Snapchat and Facebook, now enable users to send money via personal message. With this rapid expansion of digital and mobile payment capabilities, the near future of the payment industry holds a lot of promise for change and growth. Stay tuned on the latest industry trends by following Abtek on Facebook, Twitter and LinkedIn.

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PaymentsSource: Tami Cohorst Explores the Future of Mobile Payments

Tami Cohorst, our vice president, was recently featured on PaymentsSource, a global online resource for all things payment-related. Take a look at what she had to say about the future of mobile payments, according to data collected from social media:

Mobile payments are quickly becoming an integral part of consumers’ daily lives. In order for businesses to stay competitive, it’s important for them to stay on top of the trends in the industry.

Social media is an important way to accomplish that. It has emerged as a major influence on the mobile payment processing landscape. Payment service providers, financial institutions and merchants are monitoring online conversations and developing processes and technology based on what consumers want in terms of mobile payment experiences.

Keep reading at PaymentsSource.com

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Featured on Entrepreneur: Tami Cohorst Discusses Mobile Loyalty Programs

Vice President of Abtek, Tami Cohorst,  recently discussed mobile wallets and the future of mobile loyalty programs on Entrepreneur, a prominent online resource for business development news.

She writes:

“What many merchants don’t realize is that mobile wallets can also be used as strategic marketing tools to help increase their bottom lines. The solution is in mobile loyalty programs.

Find out how this mobile wallet trend will effect business loyalty programs on Entrepreneur →

 

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How Will Consumer Concerns Shape the Payments Industry Future?

Did you know that payment service providers are taking note of online conversations and shaping their processes and technology based on what consumers want in terms of mobile payment experiences? Here’s a peek at what that looks like:

ABT_Social-Media_TILES_1What’s Coming Up?

After analyzing 19.1 million social posts across Twitter, Facebook, Instagram, forums, Weibo, Google+ and YouTube, the study uncovered a number of trends in social media conversations:

  • Consumers are interested in learning more about “enriched experiences delivered through mobile payments, such as convenience, loyalty and rewards.”
  • 94% of online conversations lean favorably towards mobile payments..
  • Consumers are excited to share their purchases made via mobile payments on social.

Major companies across the globe are playing a vital role in the online mobile payment atmosphere. Key players driving the competition include brands like Apple, PayPal, Starbucks, and eBay, among others.

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So what do these conversation trends tell us about what to expect in mobile payment technology? We can anticipate the following:

  • Better consumer experience
  • Improved, more user-friendly mobile wallet experiences
  • More businesses accepting mobile payments

Mobile payments are quickly becoming an integral part of consumers’ daily lives. In order for businesses to stay competitive, it’s important for them to stay on top of the trends in the industry.


Stay updated on payment processing trends by following Abtek on Twitter and Facebook. Sign up to receive our newsletter, too.

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Can Apple Pay Put Your Credit Card Security at Risk?

Recently, the payment industry has been a-buzz about reports that Apple Pay may be suffering from security weaknesses. While Apple Pay offers simplicity and speed for users, it is really worth the risks? Or is all the discussion of potential fraud just a bunch of media hype?

ABT_Apple-Pay_ICON1Apple Pay 101

Apple Pay is a mobile payment service that allows consumers to make credit and debit payments directly from their iPhone 6, 6 Plus and the highly anticipated Apple Watch.

Think of it like a digital, mobile wallet.

Apple pay allows users to import their credit card information from their iTunes account into the Passbook application on their device. Once set up, customers can simply wave their phone over a Near Field Communication (NFC) terminal, located in a wide range of retail stores across the country, to make a purchase.

How Secure is the Apple Pay System?

When Apple Pay launched in October 2014, it was touted as being an “easy, secure and private” mobile payment solution. And up until recently, all was going smoothly. So what’s the real deal with all of this talk about fraud and security risks?

Fact: Fraudulent charges are being made through Apple Pay. Some estimates report that upwards of 6% of transactions made via Apple Pay are fraudulent.

ABT_Apple-Pay_ICON2However, it’s important for consumers to understand that Apple Pay accounts are not being hacked. The data infrastructure on Apple’s part is up to standards. The problem lies within the provisioning; a process in which banks verify the legitimacy of cards when they’re uploaded to Apple Pay. What’s happening is that criminals are taking stolen credit card information, creating iTunes accounts, using those accounts to provision Apple Pay accounts and then making fraudulent purchases.

At this time, consumers do not need to be overly concerned about the security of their credit card data once it’s uploaded to Apple Pay, but that doesn’t mean they’re not at risk. Consumers should always take extreme caution when sharing their credit card information to ensure that it’s going into the right hands.

Be Prepared! What Merchants Need to Know

The payment landscape is changing rapidly and for merchants, the most critical thing to take away from this discussion is an understanding of the importance of payment processing security.

Even the most diligent merchants experience fraud, but there are a number of ways that businesses can make transactions more secure for their customers. As Apple Pay and other mobile payment technologies become more integrated into the payment industry, more security weaknesses will likely emerge, and alternate solutions will need to be implemented.

During this time of transition, it’s important for you, as a business owner, to stay informed on all of the latest payment technologies and trends, and be sure that you have systems in place to ensure maximum security for your customers’ payment information.


Stay updated on payment processing trends by following Abtek on Twitter and Facebook. Sign up to receive our newsletter, too.

 

 

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