Since Apple Pay’s launch in the UK last month, there seems to have been mixed reactions to the tech giant’s foray into the world of payments. Although there has been excitement from Apple fans and digital enthusiasts alike, disappointment stems from expectant banking customers who are not yet supported with the mobile payment solution, while Android users and those who simply favour their leather wallet remain indifferent.
Yet, with Google tipped to launch Android Pay imminently in the US and Samsung planning its US launch of Samsung Pay in September, we are just beginning to see the start of the mobile wallet wars.
With all three mobile wallet offerings likely to be available in the UK by the end of the year, we thought it would be helpful to compare the tech giants’ offerings.
Consistent across all three solutions is the NFC technology for contactless payments, secure card storage, tokenisation to secure transactions and biometric authentication (when supported by the device and operating system).
Apple Pay
As the early entrant Apple Pay certainly has first mover advantage, but what else makes it stand out? A key selling point Apple Pay has over its rivals is in the wearable technology space. The seamless integration of Apple Pay across its latest devices enables contactless payments through the Apple Watch when paired with a compatible device.
Contactless payments are not currently available on Android Wear or Samsung Gear smartwatches, although this is likely to change with Qualcomm and NXP joining forces to develop NFC capable chips for Android Wear smartwatches.
Apple Pay is also available to developers as a buy button which can be integrated into their app’s purchase flow, with iPhone 6, iPhone 6 Plus, iPad Air 2 and iPad mini 3 compatibility.
Samsung Pay
One of the key differentiators for Samsung Pay is the incorporation of Magnetic Secure Transmission (MST) technology, which it acquired through its purchase of LoopPay earlier this year. Whereas Apple Pay and Android Pay require NFC capable payment terminals in store, Samsung Pay can also operate with magnetic stripe terminals, providing compatibility with a considerable number of terminals that don’t yet support contactless payments. This feature gives Samsung Pay broader acceptance, with retailers being able to accept Samsung Pay without having to upgrade their payment terminals.
Another interesting extension of Samsung Pay is the partnership with PayPal which will allow users to purchase apps and content on a select number of Samsung Smart TVs using a stored payment card and PIN authentication.
Android Pay
While Samsung Pay may have broad acceptance, Android Pay has the potential for wide consumer adoption.
Android Pay will be compatible with all NFC capable smartphones with Android 4.4 KitKat and later versions, which covers a large number of devices in the market.
Like Apple Pay, Android Pay also offers developers the ability to integrate a buy button into their app’s purchase flow. Where Android Pay differentiates itself is by offering seamless loyalty integration. With the ‘Save to Android Pay’ API, retailers will be able to integrate loyalty cards, offers and gift cards, with Android Pay enabling redemption via barcode and NFC. Apple has also recently integrated a number of US retailers’ loyalty programs with Apple Pay; however at this stage the list of integrated retailers remains relatively small.
2016 is certainly shaping up to be an interesting year for the mobile wallet wars with other innovation solutions due to launch later this year, so we’ll be keeping a close eye on how the landscape evolves.