It’s a bird! It’s a plane! It’s Samsung Pay!
What’s as common as the number of superhero movies released each year? The number of mobile payment options. Next to be released into the market, arriving as early as this summer, is Samsung Pay, which was introduced in March of this year at Mobile World Congress.
As noted in our 2015 Mobile Payments and Fraud Survey, the South Korean smartphone giant acquired mobile payment company LoopPay, and quickly incorporated the company’s technology into its new Samsung Pay wallet. Unlike many of the other mobile wallets out there, LoopPay’s technology enables contactless mobile payments at traditional POS terminals that accept magstripe cards in addition to NFC-enabled systems. Also giving Samsung Pay a leg up on the competition are the 30 million merchants around the world that will be able to accept Samsung Pay payments at launch. Apple Pay currently works with about 700,000 merchants.
The battle of the mobile wallets is fierce: Apple Pay continues to grow, Google has plans for Android Pay and original mobile wallet Google Wallet, not to mention the number of retailers who are developing their own payment apps. It’s still up in the air which of these is going to dominate as consumers pick their favorites. So what does this mean for merchants?
All players in the retail space need to understand that mobile payment options – and the fraud they’re susceptible to – are evolving faster than most can keep up with. In fact, mobile users are three times more likely to be vulnerable to fraud compared to their desktop counterparts. It’s critical that merchants have security top of mind when it comes to putting together their mobile strategy and adopting these new solutions.
The emergence of so many payment choices, for both merchants and consumers, leaves businesses with a list of tasks: they must ensure they understand what devices their consumers are transacting with, which can vary in spending patterns and transaction costs, as well as ensure their bottom line is protected by pushing good orders through without delay. Having a few tools is not enough. Merchants need to adopt a full-service platform that’s comprehensive and flexible so they can combat fraud in real-time and as it continues to develop.
It’s uncertain when a clear winner in the mobile payment space will emerge. It may happen as soon as the release of “Batman vs. Superman” …or it could be as long as it takes for a remake to enter theaters. But in the meantime, retailers and merchants should work closely with their tech teams and third party vendors to have a thoughtful plan for mobile fraud protection to accommodate growing mobile payment adoption. See you at the movies.