Apple Pay, Samsung Pay, Android Pay: What This Means for Banks

From Bank Innovation –

“Over the past 25 years digital disruption has been occurring, but nowhere are these disruptions felt the hardest than by banks. Large established bank institutions are leading the charge in the digital disruption strategy and managing the velocity of technological change. Banks that don’t adopt new technologies will have very few easy choices for growth.

Speed of adoption to new technologies, especially mobile banking, is arising from consumers’ usage. Let’s take a look at digital banking and three major providers of mobile payments: Apple Pay, Samsung Pay and Android Pay.

Mobile banking is becoming more prevalent than ever, due to ease and convenience. The major smartphone and mobile device manufacturers all seem to be getting involved with mobile banking and mobile payments.

Currently, Apple’s iPhone leads the mobile market share with regard to handsets, at 42% share of market. While Samsung is at 28%. But more importantly is the operating system, in which Android leads with 52.4%, and not too far behind is Apple’s iOS at 42.6%. Apple has showed small gains in recent months.”

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Android Pay: a mobile payments layer 'anybody can build on'

Google Announces Mobile Payments Platform Android Pay

From Forbes –

“At the Mobile World Congress event in Barcelona, Google's senior vice president of Android, Chrome and Google Apps Sundar Pichai announced an upcoming mobile payments framework called Android Pay. Android Pay will not be a separate payment app, but it is going to be a platform that enables developers to integrate mobile payments into their apps using an API layer.

“We are doing it in a way so that anybody else can build a payments service on top of Android,” said Pichai during the event via The Guardian. “In places like China and Africa, we hope that people will use Android Pay to build innovative services.” Android Pay will be able to act as a payment source within apps and stores that have NFC-capable registers.

Down the road, Google will enable Android Pay to utilize biometric devices such as fingerprint scanners — just like Apple Pay. Apple Pay can be secured using the Touch ID fingerprint sensors in some of the latest iOS devices to approve transactions. The credit card data of Android Pay users will be stored locally so that payments can be made without a data connection. To prevent fraud, Android Pay will use “tokenized” card numbers — which means that a one-time credit card number will be generated for each transaction.”

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