When Apple Pay launched in the UK, everyone was asking the same question. Which other mobile wallets will go on to become global wallets? With mobile payments now becoming 29% of all online transactions, it seems completely natural that like the credit cards in the eighties and nineties, mobile wallets too will become ubiquitous globally…
Like some pundits say, technology is an enabler and never an obstacle to achieving your objectives. With the eyebrow-raising predominance of Android operating system for smart phones and an ever maturing mobile user, chances are really higher now than ever before for a global mobile wallet to evolve.
Though this story is not without its full share of challenges. According to several surveys, a small fraction of mobile phone users actually download a mobile wallet or use it at all. The reasons are not hard to understand. First of all is the awareness. A majority of those surveyed under the Gallup Study, said that they had security concerns while using these apps. Another significant percentage of users said that they don’t know enough about it and many were completely unaware of the mobile wallet.
Otherwise, awareness issue aside, security is will remain a big concern for mobile users. With so many data breaches happening in recent memory, its unlikely that people would come to use the wallet in droves. They would rather adopt a wait-and-watch strategy and gradually embrace the technology.
Industry, on its part, needs to do a lot more. It needs to educate customers and also address their security concerns in the way of concrete steps.
Here we bring to you a list of most promising mobile wallets that are likely to shine in the future and some of them will surely don the mantle of a Global Wallet:
Apple Pay is a contact-less payment system which utilizes payment applications and near-field communications to make payments to merchants. Users can store their credit, debit, and membership cards etc to make instant payments online as well as offline. It recently launched in UK and, according to news sources, is eyeing the next launch in China. http://www.apple.com/apple-pay/
Alipay accounts for almost 50 percent of online transactions in China, clearly the world’s largest e-commerce market. China claims to have 650 Mn online users, with 80% of those likely to access internet through their mobile phones. Encashing on this huge market opportunity, Alipay could well become the biggest mobile wallet in the World! Alipay last year announced that its mobile payments volume was indeed greater than PayPal and Square combined! Believe it?
Sweden’s Seamless is aggressively expanding its SEQR mobile wallet throughout Europe. In March this year, it deployed SEQR in the Netherlands, Germany, Spain, France and Italy. It also has its eyes on the U.K. and U.S next.
The French telecom giant announced Orange Cash last year and is expanding it to Spain. The wallet operates on payWave contactless technology developed by VISA.
The fast-growing Indian mobile wallet is surely making waves. Although much smaller than the others, its nevertheless gaining traction fast and with a huge customer base of online Indians, the wallet is sure to fire up the mobile wallet space for many years to come!
The Russian internet giant also powers a mobile wallet, and has claimed that 22% of online Russians frequently use it to make payments.
Google’s second attempt at launching a mobile wallet may well bear fruit. A wallet that features contactless payments through near-field communications as well as embedded applications, it will surely be carving out a significant piece from the online payments pie. Visa, MasterCard, American Express, and Discover cards from banks can be added to Android Pay as well as loyalty program cards and gift cards that were previously stored in Google Wallet