Adoption of Smart Wallets; Apple Pay, Google Wallet and Wocket; Ultimately Consumers Will Have the Final Decision
13 Apr, 2015, 08:00 ET
NEW YORK, April 13, 2015 /PRNewswire/ --
Investorideas.com (http://www.investorideas.com), a global news source covering leading sectors including mobile payments and biometrics reports on user experience and the adoption of new payment technologies including Apple Pay, Google Wallet and the Wocket®.
With Apple Pay users reporting limited retailer acceptance and problems at checkout, even with its growing adoption rate, it is not the 'holy grail' for new payment technologies. This opens the door for competition - and the game is definitely on.
Everyone seems to be taking a different approach, but most are similar in that they are still focusing on mobile payments.
Wocket is taking a different path; a smart wallet designed to protect your identity and replace all the cards in your wallet, with no smart phone or cloud required.
The Company has released user video testimonials for Wocket smart wallet on social media for http://www.wocketwallet.com. The payment technology is currently being used and tested by early access pre-order customers and is still expected to ship to pre-paid consumers this spring.
One video shows a user at Whole Foods and paying for a taxi with the Wocket Smart Wallet: http://youtu.be/DQ7pyFQ8fs0
The other video shows a transaction with the Wocket smart wallet at an ATM, something that obviously can't be done with a smartphone. http://youtu.be/PT8ORiYlam4
Gino Pereira, Chief Executive Officer of NXT-ID, Inc. (NASDAQ: NXTD) said: "Wocket® is a 'smart wallet' so users expect us to be convenient and secure. What's special though and makes Wocket stand out from competitors is its ubiquitous acceptance. While other digital payment solutions are convenient, they can only be used at limited locations. Wocket truly replaces your entire wallet because it is accepted everywhere you use your cards today - even ATM's."
According to a recently published report from Phoenix Marketing International, *'Apple Pay: The First Four Months': "Just four months after Apple Pay went live on October 20, the Apple Pay adoption rate came in at an impressive 11% of all credit card-owning households and 66% of iPhone 6 owners, according to new research from Phoenix Marketing International among 3,002 credit cardholders. Most adopters (82%) linked a credit card to Apple Pay but over half (53%) linked a debit card and 20% included a GPR prepaid card in the new wallet."
"However, the early-on transaction potential is being undercut by low repeat usage and lost payment opportunities," said Greg Weed, Director of Card Research at Phoenix. "The demand is there: 59% of Apple Pay users have gone into a store and asked to make a purchase with Apple Pay. But so is the disappointment: 47% visited a store that was listed as an Apple Pay merchant only to find out that the specific store they visited did not accept (or were not ready to accept) Apple Pay."
"Even though Apple Pay users generally give the scheme high marks and 23% expect to significantly increase use over the next 3 months, problems at check-out are downgrading transaction potential," said Leon Majors, Senior Vice President at Phoenix. "Two-out-of-three Apple Pay users have reported a problem at checkout - mostly related to terminals not working or taking too long to make the transaction, inaccurate posting of transactions and the inability of cashiers to help buyers who needed assistance in using Apple Pay," Majors added.
"Since Apple Pay is still in an introductory mode and the NFC acceptance network still has a long way to go, adding a continuously updated 'local store directory' to the Passbook app is a necessary, short-term product improvement," said Mr. Weed. "Posting a list of participating retailers on a website is not cutting it. In the last four months, 48% of users have paid with Apple Pay just one time and that's not going to cut it either."
Jean-Noel Georges from Frost & Sullivan recently told InvestorIdeas "Apple's announcement of their decision to use NFC technology surprised the payment industry. In 2014 it was unexpected news because at this time, many firms were looking at alternative payment solutions such as HCE.
In 2013, Samsung and VISA did a global strategic alliance to offer the NFC payment service to clients without the need to involve Telecom operators. With the LoopPay acquisition (also financed by Visa) Samsung could address magnetic stripe technology. This would guarantee a bigger market adoption rate as this solution could work with traditional payment terminals, thus, merchants would not need to upgrade their existing terminals.
As a result of the two previous announcements, Google was forced to react. ApplePay has had a really good start in the US market and has whetted the appetite of Google for mobile payment. According to Frost & Sullivan research, Google, an OS Maker, attained 72.8 percent of the global market share in 2013 and is expected to reach 78.5 percent by 2018.
Even if Google's strategy initially appears as a reaction rather than a forecasted response, I think that the company already has deep payment knowledge and a large smartphone portfolio to include in their payment offering; the firm is well placed in the mobile payment race.
Ultimately, consumers will have the final decision."
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