Is $75 Billion In 2016 Mobile In-Store Payments Realistic?

At least one research firm thinks in-store mobile payments, mobile wallets usage, is set to explode in the U.S., despite accounts of slow uptake by consumers and crawling installation of NFC terminals by retailers.

The Business Insider Intelligence’s 2016 Mobile Payments Report predicts volume of in-store mobile payments will hit $75 billion this year and $503 billion by 2020. The authors say despite the hurdles of consumer habit and spotty availability, wallets’ benefits to both retailers and shoppers, such as security, speedier checkout process and app integration will boost usage quickly and heavily.

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It Was Hip To Be Square In Portland

Not only can small merchants ride the coming wave of mobile payments, they can make more in tips. That was part of the fun learned from a two-month Square promotion in Portland, Ore., that ended last week. The drive highlighted the company’s NFC/chip readers in a marketing siege of a city chosen for the tactic because of its high implementation of the new Square hardware and its commerce counterculture.

Apple got in on the techfest because its wallet Apple Pay is the other side of the two-way connection Square needs to boost not only wallet use but comfort with wallet use. Apple hosted a merchant tutorial on Apple Pay in one of its stores one day during the Square campaign.

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Apple Pay Announcement Looks Like A Zero But Could Be A Hero

As exciting as Apple’s annual World Wide Developers Conference can be, the news from Monday’s keynote seemed on its face sort of ho-hum for payment facilitators. The new abilities within the upcoming release of the iOS 10 mobile and macOS desktop software updates are for now merely more options that PFs have to consider along with their merchant clients. The long term view of these Apple payment moves is scintillating however, given the higher incomes of iOS and MacOS users and the huge gap between what they spend on apps compared to Android users.

The features will allow merchants to add Apple Pay to their Safari browser shopping portal’s payment suite, and for merchants to develop apps for iMessage users to use for P2P transactions. In the short term, there are challenges. Shoppers with desktops must have not only a Mac, for communicating with the iPhone or Apple Watch that authenticates the payment, but the Safari browser that Apple owns.

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Ford’s Mobile Wallet TipToes Into IoT Payments

When Ford rolled out its mobile wallet this month, it took to heart the concept of contextual payments, focusing on paying for parking from within the vehicle as well as leasing alternative vehicles. But it’s view of mobile was using a smartphone, rather than making the payments automobile-embedded. Although iPhones may weigh much less than two tons, few Apple Pay transactions will work at 80 MPH.

“FordPass, part of Ford’s transformation into an auto and mobility company, aims to do for car owners what iTunes did for music fans,” Ford said. “Launching in April, FordPass reimagines the relationship between automaker and consumer. Membership is free—whether you own a Ford vehicle or not—by registering online.” *Sigh* It’s not a good sign for business when Visa talks about integrating payments in cars and Ford thinks it can accomplish anything with a mobile app on someone else’s hardware. It owns the cars and that’s where its customers are. Why not place the payments apparatus right there in the car’s dashboard, in a place where rivals can’t reach?

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Can Starbucks Pull A Payments Pied Piper With Musical Mobile Money?

Starbucks is working with Spotify on a music deal, one where Starbucks customers will be able to easily download songs from the Starbucks playlist. Here’s the hook: It’s a backdoor route to more mobile payments.

Before you dismiss this as too bizarre to have any payments impact, music has had some surprising influences on retail purchases. To be precise, it’s not the music itself as much as allowing the shopper to be in control of the music.

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Apple Envisions P2P In Every Possible Way

With Apple’s P2P rollout and partnerships getting closer, it’s not surprising that Apple was granted a Patent for the approach last month. But what was not expected was how inclusive and extensive Cupertino envisions P2P being, with the capability integrated into almost every iPhone function.

“It’s clear that Apple is planning to provide an OS-wide payments integration that provides merchants with marketing benefits such as the ability to promote certain deals directly into the OS, such as geo-location based promotions into Maps, or via e-mails or instant messages, all with the ability to compete purchase/pre-order with one click based on Apple Pay enrollment and identity information stored on the device,” said Rick Oglesby, a senior analyst with payments consulting firm Double Diamond Group, Oglesby argues that this is the logical next move for Apple, as Apple Pay moves into its second-year year with growing market maturity and acceptance.

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