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Mobile payments remain a tough proposition to sell in mature markets

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Mobile payments are having a tough time gaining adoption in mature markets. According to the annual “Connected Life” as per one study, only a minority of internet users surveyed in countries like the US, the UK, Canada, France and Germany preferred the use of mobile payments to other methods.

In fact, China and Mongolia were the only two countries in which a majority of respondents said they favoured using mobile payment platforms. China was something of an outlier, where 64% of respondents expressed a preference for mobile payments. Mongolia was close behind (63%).

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 The study, which surveyed internet users in 56 countries, found that just 39% of total respondents preferred the use of mobile payments. That figure sat at 45% in markets Kantar TNS defined as “emerging,” significantly higher than the 23% average in developed countries. The preference rate was highest in the “emerging Asia” region, at 48%.

China’s preference for mobile payments eclipses the average in the wider “emerging Asia” region by a significant margin, thanks to its comparatively developed digital ecosystem. The country has a relatively low rate of credit card adoption, allowing digital services like WeChat Pay to spread rapidly, especially in the country’s urban areas.

A June 2017 survey of urban WeChat Pay users in China found that 73% of respondents used cash when that was the only form of payment accepted.

Meanwhile, services like WeChat Pay have established themselves as an easy way to complete transactions in China. eMarketer estimates that 77.5% of smartphone users in China will use proximity mobile payments in 2018, compared with just 25.3% of smartphone users in the US.

There are a few factors holding back mobile payments in Western markets. According to a June 2017 survey, lack of knowledge was the primary reason mobile users in Canada, the UK and the US don’t use a mobile wallet. Other reasons included various security concerns, and some simply didn’t like taking their phone out to pay.

imageA November 2017 report on US mobile consumers stated that key obstacles to adoption in the country included “concerns about security and a lack of understanding of [mobile payments’]potential benefits.”

Regardless of such adoption barriers, providers such as Apple Pay and Android Pay are continuing to expand their reach globally. Last month, Android Pay launched in Brazil, Czech Republic, Slovakia, and Ukraine, bringing the total number of countries in which it’s available to 17—eight of which were added this year.

posted Feb 24, 2018 by Aviral Singh

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French payments company Worldline will buy the payments unit of Swiss stock exchange operator SIX Group, in the latest example of consolidation within the sector, as credit card companies and banks are keen to lock in profit from the shift towards electronic and online payments. The French company said its acquisition of SIX Payment Services would be a transaction mostly paid in shares with a cash component of 0.28 billion euros ($333.59 million), giving SIX Payment Services an enterprise value of 2.30 billion euros, or 2.75 billion Swiss francs. Worldline said the deal would result in SIX Payment Services ending up with a 27 percent stake in the French company, while Atos would retain its majority 51 percent stake in Worldline. Worldline said its offer to buy SIX Payment is composed of an offer of 49.1 million of new Worldline shares to be issued, representing 27 percent of the share capital, and 338 million Swiss francs ($337.53 million) in cash, subject to customary net debt and working capital adjustments. The European payments industry has been consolidating quickly and other recent takeover targets have included Worldpay and Paysafe, while Nets also got taken over last year by U.S. firm Hellman & Friedman.

 

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French payments company Worldline will buy thepayments unit of Swiss stock exchange operator SIX Group, in the latest example of consolidation within the sector, as credit card companies and banks are keen to lock in profit from the shift towards electronic and online payments. The French company said its acquisition of SIX Payment Services would be a transaction mostly paid in shares with a cash component of 0.28 billion euros ($333.59 million), giving SIX Payment Services an enterprise value of 2.30 billion euros, or 2.75 billion Swiss francs. Worldline said the deal would result in SIX Payment Services ending up with a 27 percent stake in the French company, while Atos would retain its majority 51 percent stake in Worldline. Worldline said its offer to buy SIX Payment is composed of an offer of 49.1 million of new Worldline shares to be issued, representing 27 percent of the share capital, and 338 million Swiss francs ($337.53 million) in cash, subject to customary net debt and working capital adjustments. The European payments industry has been consolidating quickly and other recent takeover targets have included Worldpay and Paysafe, while Nets also got taken over last year by U.S. firm Hellman & Friedman.

 

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Seven mobile wallets, acquirers and payment networks, including Diners Club, EZi Wallet, EZ-Link, Liquid Pay, MasterCard, UnionPay International and Wirecard, have formed a consortium to enable interoperable QR payments in Singapore for consumers and merchants, according to a press release.

In line with Singapore Quick Response Code initiative, the consortium will jointly support an interoperable QR framework that enables customers to pay with their mobile wallets and cards at consortium merchants. Apart from bilateral arrangements, mobile wallets and acquirers can choose to be supplemented by LiquidNet, an interoperable API platform developed by Liquid Group that is open to debit and credit cards, wallets, telecom providers, payments technology institutions as well as local and international payment apps, according to the press release.

The consortium's goal is to promote electronic payments in Singapore, in line with the Singapore Payments Roadmap, with the aim of supporting interoperability among 2 million customers and 50,000 merchants in Singapore by the end of the second quarter of 2018.

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