Digital Transactions Authoritative, insightful and timely information for payments professionals
By Kevin Woodward
@DTPaymentNews
Consumers will use Apple Pay and Alphabet Inc.’s Android Pay online and in-app to make $8 billion in payments for digital and physical goods by 2018, almost 15 times more than the $540 million forecast for 2016, according to Juniper Research, a U.K.-based research firm.
Juniper released its projection as part of its “OS-Pay To Shake Up Remote Retail” white paper released Tuesday.
Integration of the payment mechanism into the app or mobile browser is viewed as less cumbersome than having to enter a password, Juniper says. Apple Inc. is expected to offer Apple Pay as a browser-based service when it releases updated iPhone and macOS software this fall.
Consumers are beginning to use smart phones for purchasing as well as discovery, Juniper says. “This trend appears to be a natural progression from the relatively stagnant consumer-tablet industry, and the prevalence of larger-screened smartphones offering an improved-purchasing experience.”
“It is clear that even in markets where PCs and laptops have a high installed base that the smartphone is playing an increasingly important role where remote goods purchases are concerned,” research author Steffen Sorrell, said in a press release. “For merchants, this means that the buyer experience must be made as frictionless as possible–from product search and discovery to purchase.”
PayPal Holdings Inc., with its Express Checkout service that requires entering only a password to access stored payment credentials, has had a measure of m-commerce success because it is able to reduce the friction of shopping on a small device. Merchants, cognizant of this, increasingly will adopt Apple Pay and Android Pay to offer the same benefit to customers, Juniper said.
“…The integration of an OS-Pay service, either into the app or mobile Web site, means that the consumer is presented with an increasing choice in terms of payment options where card or bank account details are no longer required to be entered,” the Juniper report concludes.
