Contactless Payment – Apple Pay, Android Pay and Samsung Pay

Contactless Payment – Apple Pay, Android Pay and Samsung Pay

For those of you who dont know: Contactless payment systems are credit cards and debit cards, key fobs, smart cards or other devices, including smartphones and other mobile devices, that use radio-frequency identification (RFID) or near field communication (NFC) for making securepayments.


As you all know Apple Pay, Android Pay, and Samsung Pay – will should be available in the U.S. by the end of September. Android Pay should be anytime soon or early September, but we do know many of the Android Pay partners have begun promoting it. Samsung Pay is officially arriving September 28th. Since Apple Pay has been the major contactless payment provider available for quite some time, this marks a big change for the entire contactless payment and mobile wallet industry. And it’s a change that should be good for everyone.


There has been much talk about but there have been a very few adopters. This is dues to the unending circle of people waiting for each other. Vendors waiting for the the customers to start using the tech and customer waiting for the vendors to implement it. This inability to capture the market by one bran has let to competitors which actually might make the adoption of this tech much easier and faster. If you have a brief look at the market shares it will give us an idea of who will get there first and the fastest. It also give us a glimpse into a possibility of contactless payment actually spreading globally much faster then it would have been with a single brand dominating the market.

Android dominated the market with a 78.0% share. Samsung, a #1 contributor, managed to increase its volumes quarter on quarter with strong sales channel, wide product portfolio, and particularly a greater focus on low-midrange devices. However, it was still down year over year by 8%, unlike the other top Android players such as Lenovo, Huawei, LG, Xiaomi, and ZTE which ranged from flat to 28% YoY growth.

iOS saw its market share for 1Q15 decline slightly to 18.3% with 61.2 million shipments. Given the post-holiday seasonality, Apple’s follow-up quarter appeared strong and was in itself surprising. It enjoyed success thanks to consumers’ insatiable appetite for larger screened iOS devices in many key markets including Greater China, even though China’s overall year-on-year market growth in the quarter flattened significantly.



Mobile payments have already led to an increase in tips at restaurants and analysts are predicting that it will cause a rise in spending just as credit cards did. And that isn’t the only thing that will help your business make more money through contactless payments. You can also move your loyalty and rewards programs into the mobile wallet. Research shows that 57% of US online adult smartphone users are interested in having access to loyalty program points and rewards within a mobile wallet. So far it seems that consumers are simply responding better when their buying experience is intertwined with their mobile phone. Time will tell the full effect that contactless payments will have on consumer behaviour, but as the big 3 force retailers to adopt, it doesn’t appear that contactless payments are going away anytime soon.