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7 mobile wallets that are shaking things up in payments

There are umpteen mobile wallets in the marketplace angling for customer loyalty (and marketing data). Here are seven contenders to keep an eye on.

August 21, 2015

byAndy Brown, Product Marketing Manager, Alaric Systems Ltd.

Among the many innovations that have taken place in the consumer payments sector in recent years, perhaps none has had the same impact as mobile payments. With so many advanced devices now in people's pockets and handbags, it's an area with huge growth potential.

According to figures from Gartner, more than a billion smartphones were sold around the world last year, and the number is set to grow even further this year, driven by emerging markets.

With people often treating their device as their primary computer, it's only natural they'll want to make payments through it. That's why so many new players have been looking to enter the mobile payments market in recent years.

We've highlighted some of the biggest and most promising new services that you need to be aware of:

Apple Pay

These days, it's not a mainstream technology until Apple is involved. The company that shook up the MP3, smartphone and tablet markets with the iPod, iPhone and iPad, entered the mobile payment market in the U.S. last year with Apple Pay, which arrived in the U.K. to much fanfare in July.

Once users have added their payment cards to the app, they can make purchases by tapping their iPhone 6 or Apple Watch on any contactless terminal. The great allure is the integration of biometric technology, with users authenticating by fingerprint reader.

Samsung Pay

One of the newer entrants to the market, Samsung Pay is currently being piloted in South Korea. Like Apple Pay, it allows users to load their credit or debit card details into their phone, before tapping the device on a contactless payment terminal and confirming their identity through the fingerprint scanner — though you can also choose to enter a password should you prefer.

Android Pay

In the US, Google Wallet is one of the more established mobile payment solutions, though its take-up has been held back by a lack of infrastructure. However, it's now being superseded by Android Pay, which brings it more in line with Apple's system. With Android's more open platform, it should be available on far more devices than Apple Pay — any phone with an NFC chip and at least version 4.4 of the Android operating system is said to be compatible.

Microsoft Payments

This is another option still in the early stages, and there are still few details about what is expected to be the Windows-maker's answer to Apple Pay and Android Pay. However, it is known that Windows 10 — which will work across PCs, tablets and smartphones — will offer native NFC capabilities. And besides acting as a transaction platform, it's reported that Microsoft also plans to sell prepaid accounts that can be preloaded with funds, and that operate as a card from the phone.

Vodafone Wallet

Mobile operator Vodafone has offered a mobile payments app for a while, but only entered the rush to contactless technology earlier this year following an agreement with Visa. Like many of its rivals, it allows people to store details and pay via NFC, though it offers a smaller range of eligible handsets than Android Pay. 

Zapp

First announced in 2014, the U.K. banking industry's mobile payment effort is finally set to launch in the autumn with support from names such as HSBC, First Direct, Nationwide, and Santander. Users of Barclays Pingit app will be the first to be able to take advantage of Zapp's Pay by Bank app in October.

The solution also promises users more convenience, as they will be able to make real-time payments through their existing bank app. And importantly, it uses secure digital tokens that ensure customers do not have to reveal any of their financial details to retailers.

MCX

Like many of its competitors, MCX — or Merchant Customer Exchange — allows consumers to complete an in-store purchase via a smartphone app and a mobile wallet. However, unlike tools such as Apple Pay and Android Pay, the MCX app, CurrentC, is owned by a consortium of retailers, including Walmart, Best Buy and 7-Eleven, and offers a range of discounts and rewards as incentives. 

Instead of using NFC, the CurrentC wallet requires users to scan a QR code to the merchant's reader, much like the closed-loop system used by Starbucks. This method can encourage loyalty, but is less convenient than contactless as it requires the user to scan a specific code.

This post first appeared on banking.com.