Apple To Gain Market Dominance With New M-payment Platform
Mobile payment (m-payment) adoption across the globe is expected to see moderate growth in the next one year. However, Apple, which is ready to launch a new m-payment platform in the coming months that will allow users to make payments using an iPhone will give a significant boost to the overall sluggish market, says a recent Ovum study.
The research firm states that in the last few years, Apple has been putting in place the pieces that in 2014 will see it finally launch a fully-fledged, unified m-payments platform. This will have a positive impact on consumer uptake and use of m-payments, but may have a negative impact on other players that are hoping to gain market dominance in the space.
Last year, there have been rumors of Apple adding m-payments to its devices when it added a fingerprint sensor to its new iPhone. Many debated whether it would allow mobile payments to be verified or not.
The only other company besides Apple that will gain some prominence in the m-payment market is Amazon which has declared its “big ambitions for mobile” that include its reported acquisition of GoPago’s mPOS technology. According to researchers this will help them gain a strong foothold in the mobile payments market.
As far its prediction of the entire mobile payments market goes, Ovum scaled back its expectations on near field communication (NFC) by stating that it would not take off in the next two years as “a growing number of alternative enabling technologies are readily available, and at lower cost to merchants and consumers.” However, it predicts NFC with hosted card emulation is one area that could help open the NFC market up to increased innovation and competition, just so long as the security concerns are addressed.
According to Ovum, tablet-based mobile commerce is an area that is expected to see high growth during this year and beyond and will increase opportunities for mobile advertising.
Eden Zoller, principal analyst with Ovum’s Consumer Practice, sees a consolidation in the digital wallets space. There has been an explosion in digital wallet launches over the last two years and this is not sustainable. Consumers will not adopt multiple digital wallets and over the next year or so will consolidate their loyalty and spending into one or possibly two digital wallet services.
“The best-positioned digital wallets will be those run by the financial and retail brands that consumers trust and are familiar with, putting players such as PayPal and Visa in a strong position. Wallets of this kind will be able to achieve scale and attract the advertising dollars that are needed to bolster the digital wallet business model,” he sums up.
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