Why some retailers won’t buy the ideas of mobile wallets
Some retailers are not yet blown away by the news of the early adoption of Apple Pay. According to Toys “R” Us, which supports Apple Pay in their 870 stores, even though there has been an increase in the number of mobile payments in its store after the introduction of Apple Pay, there are still relatively few mobile payments as customers are yet to learn about the new technology.
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But Google, Softcard and other Apple competitors offering mobile wallet products suggest the entrance of Apple may be good for all players offering mobile payments. According to Michael Abbott, the CEO of Soft card a mobile wallet that is backed AT&T, T-mobile and Verizon, Apple Pay is a huge tailwind. He says that as a result of Apple, many companies are willing to support the same mobile phone technology.
Since the release of Apple Pay, new customers have downloaded the app more often while existing members use it more frequently. Google has already stated that its mobile payment app, Google Wallet has become more popular since the release of Apple Pay. Mr Abott termed it as a rising tide that is lifting up all boats.
While the popularity of mobile payments has continued to grow, the overall spending by smartphone remains low. According to Gartner, a research firm, the amount spent through mobile worldwide amounted to $2535.4 billion in 2013 a rise from the figure of $163.1 billion spent in 2012. In North America, the consumers spent around $37 billion through their mobiles, a rise from the $24 billion spent in 2012.
Source: Apple Balla