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NEWS
Mobile, contactless and wearables pave way for alternative payments
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n the UK, contactless payments have become ubiquitous, with six in 10 Brits paying by tapping their card or phone. According to data from Barclaycard, more than £60 billion has been spent using contactless cards and devices in the decade since the technology was first introduced, and the usage is projected to rise by a further 317% by 2021. In particular, the clothing and retail industry has seen the highest growth, with an increase of 321% year on year.
“Retailers are simultaneously embracing cards over cash, with two in five either solely accepting card payments or considering going entirely cash-free within the next five years – and the business benefits are clear to see,” said Adam Herson, business development director at Barclaycard Mobile Payments.
“Over three-quarters of retailers who have introduced contactless payments are processing an average of 30% more transactions each day, meaning those yet to start accepting ‘touch and go’ are potentially missing out on sales to their savvier competitors.”
Contactless payments are on the rise The big wearable apple
Mobile payments, such as Apple Pay and Android Pay, have become increasingly popular, with Apple having advanced its technology to now allow users to pay with a single tap on iOS apps and websites on Safari, making it easier to pay on the go.
Kerv, the contactless payment ring, is linked to a prepaid account that can be topped up on the mobile phone. BPay, by Barclaycard, allows users to pay with keys, a wristband, a sticker or fob.
Over half (51%) of eligible transactions up to the £30 limit are now made contactlessly. Visa research shows that 72% of UK consumers expect to be using mobile or smart devices to make payments in three years’ time.
Apple Pay Cash
Apple’s advance into the world of payments has been delayed, if ever so slightly. The ApplePay feature that allows users to transfer money via text message, and which was to be introduced with the iOS 11, has been pushed back. It will available on the Apple Watch too.
“Apple Pay users will be able to send and receive money from friends and family quickly, easily and securely,” it said in the latest information published about the update. “Pay and get paid right in Messages, or tell Siri to pay someone, using the credit and debit cards they have in Wallet. When users get paid, they receive the money in their new Apple Pay Cash card in Apple Wallet and can use the money instantly.”
Apple Pay Cash follows the giant’s venture into fintech with Apple Pay, which came to the UK last year. The feature is similar to PayPal and Square Cash in the US, where the Venmo money messaging app is hugely popular among millennials.
In the UK, Transferwise added the ability to send cash via Facebook Messenger earlier this year, and money transfer via messaging is also an element of other fintech apps, such as Circle. Google has just launched Tez in India, its first standalone app for money transfers.
Alternative payments
Other forms of alternative payment are also on the rise. GoCardless, a direct debit network based in London, has raised a further $22.5 million in funding from existing investors Accel, Balderton Capital, Notion, and Passion. The company has now raised a total of $47.5 million since its inception in 2011.
With this funding, the company is expanding to Spain, the Netherlands and Sweden; joining the UK, France and Germany. Australia and Denmark are in the pipeline. The network is currently handling $4 billion in annual transactions across 30,000 businesses.
“As more businesses become international, they face endless frustrations in managing payments across multiple territories,” said Hiroki Takeuchi, CEO. “What we have engineered is a way to simply plug recurring payments into their existing systems, across the world, so they can focus on the challenges that really matter.”
www.ibsintelligence.com | © IBS Intelligence 2017
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