Mobile payment platforms are proliferating as Samsung rolls out Samsung Pay and PayPal picks up Paydiant. The largest players in the channel are now on track to enhance consumer adoption at the point of sale.
When Samsung announced in February that it would acquire LoopPay, it was understood that the hardware company would integrate the new technology in its mobile devices, creating a version of Apple Pay for Android users.
Google's subsequent purchase of Softcard was intended to bolster and grow Google Wallet. The acquisition is part of a deal with wireless carriers to pre-load Google Wallet on millions of handsets.
PayPal then announced it would acquire Paydiant, a platform provider that created the technology powering mobile wallet applications used by many retailers, including the Walmart-backed MCX. Sources say PayPal, the payment division of eBay, will pay roughly $280 million for the startup, according to Re/code.
And the race is on to push consumer adoption of mobile payments forward.
Apple Pay was met with early success, and each of these new platforms will reach or appeal to different customer bases.
Unlike Apple Pay, Samsung Pay is compatible with non-NFC terminals, something that ensures higher merchant acceptance. And PayPal's Paydiant allows retailers to integrate payments with loyalty programs.
Retailers now have options, but consumer adoption could take awhile.
"As with any new payment service, it will take time before we see significant adoption, whether for Samsung Pay or Apple Pay, because it requires personal time investment on the side of the consumer to learn such a new service," said Pascal Caillon, general manager North America, Proxama. "That being said, adoption may be quicker with Samsung Pay than it was with Apple Pay because Samsung Pay can be used in most POS environments, as opposed to Apple Pay which can only be used with contactless POS."
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