The global expansion of Apple Pay, Samsung Pay and Android Pay will be a major factor driving the growth of mobile payments services, and attracting more entities to join the mobile payments market. According to IHS Markit press release, 3.4 billion smartphones will be ready for Apple Pay, Samsung Pay and Android Pay by the end of 2017; this number will increase to 5.3 billion by 2021.
„To reach these smartphones, Apple, Samsung and Android must strategically expand their mobile payments services and build partnerships with banks and financial institutions across many more markets.” says Ruomeng Wang, mobile and telecoms analyst at IHS Markit.
Integrating with international and local financial networks is the key to increasing service availability and user adoption. IHS Markit estimates by the end of the 2017, 10% of active smartphones globally will be compatible with Apple Pay, 55% with Android Pay, and 2% with Samsung Pay (which overlaps with Android Pay, as Android Pay is also available on Samsung smartphones).
“Apple and Samsung are leading the global expansion of device-based mobile payments services. 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.” the report say.
“Compared to Apple and Google, Samsung doesn’t have the same level of content, app platforms or web browsers designed to keep customers engaged,” Wang added. “In order to tie customers to Samsung’s ecosystem, Samsung must actively expand Samsung Pay’s support for online retail.”
Apple Pay is currently available in a total of 15 global markets, Android Pay is present in 10 markets and Samsung Pay’s recent entrance into four new countries brings its global presence to 16 markets, including its early access launches in Hong Kong and Switzerland.
„Though Libra has met with fierce resistance from central banks and supervisory authorities and might never see the light of day, in many other cases tech firms (both start-ups and established big players) have successfully captured bits and pieces of universal banks’ traditional value chain. This trend may only intensify in the coming years. In this environment, European banks remain squeezed.”