3.4 Billion Smartphones Ready for Apple Pay, Samsung Pay and Android Pay by the End of 2017
April 27, 2017 | IHS MarkitEstimated reading time: 3 minutes
According to new analysis from IHS Markit 3.4 billion smartphones will be ready for Apple Pay, Samsung Pay and Android Pay by the end of 2017, and the number is expected to increase to 5.3 billion by 2021.
IHS Markit estimates that by the end of the 2017, 11 percent of active smartphones globally will be compatible with Apple Pay; 61 percent with Android Pay; and three percent with Samsung Pay, which overlaps with Android Pay, as Android Pay is also available on Samsung smartphones. “To reach these smartphones, Apple, Samsung and Android must strategically expand mobile payments services and build partnerships with banks and financial institutions,” said Ruomeng Wang, Mobile & Telecoms Analyst at IHS Markit.
By the end of the first quarter of 2017, Apple had launched Apply Pay in 15 international markets; Samsung had rolled out Samsung Pay in 14 markets; and Android Pay was available in 10 markets. “Apple and Samsung are leading the global expansion of device-based mobile payments services, Wang continued. “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.”
Reward programs are key to boosting user adoption
Developing reward programs help mobile payments services gain user adoption. At CES 2017 in January, Samsung reported that the number of daily Samsung Pay users had doubled every week since the launch of Samsung Rewards in the U.S. In addition to offering ongoing loyalty programs, mobile payment services providers can launch short-term incentive-based promotions during festivals to recruit new customers and take advantage of busy shopping seasons. “Adding entertainment elements into the reward programs, such as Android Christmas Cracker and Alipay’s Red Envelope – which emulates the Chinese tradition of sending money to family and friends during festivals – differentiates mobile payments services by creating unique user experiences,” said Wang. “Mobile payments services can use reward programs to engage retailers, banks and customers, adding co-branding value in terms of marketing spend and brand recognition.”
Moving from in-store to in-app and online
Apple and Google are working to make their mobile payments services the default payment method, tied to their own ecosystems and used across platforms. Currently there are 38 payments platforms and two million small businesses supporting Apple Pay on the web, which allows users to checkout online using an Apple device and Safari browser. Apple Pay also is available at the App Store, and integrates with apps such as Uber, AirBnB, Lyft, Groupon, Instacart, OpenTable and Starbucks. Android Pay enables users to make payments in Google Play, in apps and on mobile web sites such as Domino’s, Dunkin Donuts and Etsy in the U.S., and subscribe to the Washington Post through Android Pay at a discount.
In South Korea, Samsung is working with local online shopping platforms to launch Samsung Pay Shopping. In March 2017, the company partnered with Visa Checkout to expand Samsung Pay’s reach outside South Korea. “Compared to Apple and Google, Samsung doesn’t have the same level of content, app platforms or web browsers designed to keep customers engaged. In order to tie customers to Samsung’s ecosystem, Samsung must actively expand Samsung Pay’s support for online retail,” Wang said.
About IHS Markit
IHS Markit is a world leader in critical information, analytics and expertise for the major industries and markets that drive economies worldwide. The company delivers next-generation information, analytics and solutions to customers in business, finance and government, improving their operational efficiency and providing deep insights that lead to well-informed, confident decisions. IHS Markit has more than 50,000 key business and government customers, including 85 percent of the Fortune Global 500 and the world's leading financial institutions. Headquartered in London, IHS Markit is committed to sustainable, profitable growth.
Suggested Items
Micron First to Ship Critical Memory for AI Data Centers
05/01/2024 | MicronMicron Technology, Inc. announced it is leading the industry by validating and shipping its high-capacity monolithic 32Gb DRAM die-based 128GB DDR5 RDIMM memory in speeds up to 5,600 MT/s on all leading server platforms.
HQ NextPCB of HQ Electronics Debut on the International Stage for Electronics Manufacture at IPC APEX 2024
05/01/2024 | PRNewswireHQ NextPCB of HQ Electronics, a leading Chinese-based multilayer PCB manufacturer and assembly house showcased its industrial prowess on the international stage for the first time at the IPC APEX Expo 2024.
GPV’s Q1 2024 Interim Financial Report Shows Strong Navigation in Uncertain Times
05/01/2024 | GPVDanish-based GPV recorded an expected drop in sales to DKK 2.3 billion for the first quarter of 2024. The decline also affected the operating profit, which was DKK 155 million compared to DKK 179 million in the same quarter last year, although the EBITDA margin was maintained. In general, demand has been softer in 2024, but GPV continues to invest for the long-term and expects the trend to turn in the second half of 2024.
The Knowledge Base: A CM’s Perspective on Box Build Practices
04/30/2024 | Mike Konrad -- Column: The Knowledge BaseIn the ever-evolving landscape of electronics manufacturing, the box-build process stands out as a critical phase that bridges the gap between individual component manufacturing and the delivery of a fully functional electronic system. This intricate procedure, encompassing the assembly of everything from PCBs to wire harnesses and mechanical enclosures, demands a high level of precision, efficiency, and innovation. As the electronics assembly industry expands and diversifies, understanding the best practices within box-build assembly has become paramount for manufacturers aiming to stay ahead in a competitive market.
I-Connect007 Editor’s Choice: Five Must-Reads for the Week
04/26/2024 | Andy Shaughnessy, Design007 MagazineIn this week’s roundup, we have a variety of articles covering everything from design through assembly, and even box build. I’ve always wondered whether box build was all it was cracked up to be. Do customers really pick one EMS provider over another because one company offers box build? And if you’ve ever wanted to volunteer, IPC’s Thought Leaders Program is looking for a few good technologists to help them on their mission. Check out Stanton Rak’s article, which was published in the spring issue of IPC Community.