Apple Pay, Android Pay and Samsung Pay for Businesses – A Contactless Wake-up Call

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Apple Pay, Android Pay and Samsung Pay represent a big opportunity for merchants, retailers and other businesses in Asia – but are you ready for more contactless customers?

Apple Pay finally landed in Singapore on 19 April 2016, the sixth country in the world to offer the service starting with American Express card holders, followed by Visa and MasterCard debit and credit cards issued by the five major banks - DBS, POSB, OCBC, UOB and Standard Chartered on 25 May 2016.

In addition to Singapore, Apple Pay is currently available in the US, China, Australia, UK and Canada, and is expected to land in Hong Kong and Spain later this year.

Meanwhile, Samsung Pay is reported to go live in Singapore by Q2 2016. Its partners are set to include American Express, MasterCard and Visa, alongside local banks DBS/POSB, OCBC Bank and Standard Chartered. Samsung Pay is currently available in South Korea, the US and China and is expected to expand into Hong Kong and Malaysia within the year.

This is great news for consumers, as it will give them another convenient way to pay for purchases. It’s good for businesses too, as it represents another way for customers to make quick ‘tap and go’ transactions that do away with the need for cash.

You don’t want to be left on the back foot because you can’t take contactless payments. Whether you’re a retailer, running a hair salon or taking the bill at a restaurant, the inability to accept Apple Pay, for instance, could disappoint latest iPhone and Apple Watch users and could lead to you being perceived as old hat.

Potential Uptake

The adoption of Apple Pay is slow among the US iPhone users according to a recent survey by research firm First Annapolis with 580 iPhone owners. It was reported that 20 per cent of the iPhone 6 owners reported using Apple Pay at least once last December, down from 22 percent last spring. Among those who have adopted Apple Pay, 15 per cent reported using it regularly compared with 19 per cent last spring.

In another survey of 3,0002 people by Phoenix Marketing published late last year, it was found that after the payment system launched in 2014, it was adopted by 11 per cent of cardholding households in February 2015. That figure increased to 13 per cent of households in July, then to 14 percent by September, according to Phoenix.

Analysts are predicting a slow adoption rate3 of Apple Pay in Singapore as local consumers may need some time to warm up as the use of contactless card payments has been increasing in Singapore. While consumers are comfortable with using contactless, it will take time before these wallets become more convenient for customers and for customers to realise the benefits and additional value that digital wallets bring.

According to a study4 commissioned by Samsung in February this year, 71 per cent of Samsung users indicated interest in using Samsung Pay once it becomes available. The study polled about 400 Singaporeans.

What This Means for Your Business

If you can’t take Apple Pay, Android Pay or Samsung Pay at the POS, you risk disappointing your customers. With the service only just released, it will carry a novelty factor for a period of time. Consumers will be excited to try out this new way of paying. Failure to deliver this on your part might damage your relationship with that customer.

Once Apple Pay, Android Pay and Samsung Pay become more popular, failure to provide facilities to accept this kind of payment could be seen as an inconvenience to customers. It might also lead to you being seen as behind the times – contactless card payment is now becoming expected rather than being seen as a luxury, a trend that will only continue with the introduction of this new service.

Stay Ahead of the Game

When it comes to your point-of-sale terminals, you want to know that you’re prepared for whatever gets thrown at your business.

At First Data, our contactless terminals are already enabled to accept Apple Pay, Android Pay and Samsung Pay.

To learn more about how to accept Apple Pay, Android Pay and Samsung Pay at your stores, call our business consultants today!

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1 http://www.cnbc.com/2016/02/17/adoption-of-apple-pay-slows-survey-suggests.html

2 http://phoenixmi.com/pr/phoenix-marketing-international-releases-new-data-revealing-the-ongoing-challenges-surrounding-apple-pay/

3 http://www.channelnewsasia.com/news/business/apple-pay-to-see-slow/2710322.html

4 http://www.channelnewsasia.com/news/technology/samsung-pay-launches-in/2713214.html 02 JUN 2016 Increase Sales and Mobility with Wireless POS Terminals Continue Reading