If you’ve ever wished for the ability to pay for your coffee or groceries with your smartphone, the chances of that capability already being built into your device are now better than ever.
According to a new report from IHS Markit, some 3.4 billion smartphones will be compatible with Apple Pay, Samsung Pay, or Android Pay by the end of this year. And that figure is only expected to continue to rise to hit 5.3 billion by 2021.
As of the close of the first quarter, IHS Markit noted Apple Pay had already been launched in 15 markets across the globe. Similarly, Samsung Pay was available in 14 markets and Android Pay was available in 10 markets.
“Apple and Samsung are leading the global expansion of device-based mobile payments services,” IHS Markit Mobile and Telecoms Analyst Ruomeng Wang observed. “Despite Apple Pay having a 10-month head start on Samsung Pay, Samsung has been catching up with Apple in terms of total available markets.”
So which of these is statistically in your pocket?
Well, IHS Markit predicted that by the end of this year, 61 percent of active smartphones globally will be Android Pay compatible. Around 11 percent of devices will be Apple Pay enabled, and 3 percent will have access to Samsung Pay, the firm estimated.
IHS Markit said things like rewards and loyalty programs can help mobile payment services draw in new users and provide differentiated experiences. Enabling mobile payments on the web is another way the companies behind these services can expand their ecosystems, Wang noted.
“Apple, Samsung, and Android must strategically expand mobile payments services and build partnerships with banks and financial institutions,” Wang added. “Adding entertainment elements into the reward programs, such as Android Christmas Cracker and Alipay’s Red Envelope – which emulates the Chinese tradition of sending money to family and friends during festivals – differentiates mobile payments services by creating unique user experiences. Mobile payments services can use reward programs to engage retailers, banks, and customers, adding co-branding value in terms of marketing spend and brand recognition.”
Filed Under: Devices
