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Alibaba-affiliated mobile wallet Alipay will partner with point-of-sale (POS) terminal vendor Ingenico to expand its reach into Europe, according to The Wall Street Journal.
Alipay is partnering with European processors in order to make it easier for Chinese tourists to continue using Alipay while abroad. The Ingenico deal, which expands on a digital cross-border processing partnership between the two firms, is another in a series of processor partnerships including Wirecard and Concardis that expand Alipay’s reach.
Ingenico’s size in Europe could bring Alipay to a considerable number of stores. Though Ingenico didn’t disclose total merchant statistics, the firm’s Europe and Africa segment is Ingenico’s largest, comprising 36% of its Q2 2016 revenue.
Alipay will now be able to access that large and lucrative merchant base, which could substantially increase its reach in Europe. And spending from Alipay customers will reportedly give Ingenico access to service charges while growing its transaction volume, therefore making the partnership a potential booster of revenue in the European segment.
Mobile payments are becoming more popular, but they still face some high barriers, such as consumers' continued loyalty to traditional payment methods and fragmented acceptance among merchants. But as loyalty programs are integrated and more consumers rely on their mobile wallets for other features like in-app payments, adoption and usage will surge over the next few years.
Evan Bakker, research analyst for BI Intelligence, Business Insider's premium research service, has compiled a detailed report on mobile payments that forecasts the growth of in-store mobile payments in the U.S., analyzes the performance of major mobile wallets like Apple Pay, Android Pay, and Samsung Pay, and addresses the barriers holding mobile payments back as well as the benefits that will propel adoption.
Here are some key takeaways from the report:
- In our latest US in-store mobile payments forecast, we find that volume will reach $75 billion this year. We expect volume to pick up significantly by 2020, reaching $503 billion. This reflects a compound annual growth rate (CAGR) of 80% between 2015 and 2020.
- Consumer interest is the primary barrier to mobile payments adoption. Surveys indicate that the issue is less the mobile wallet itself and more that people remain loyal to traditional payment methods and show little enthusiasm for picking up new habits.
- Integrated loyalty programs and other add-on features will be key to mobile wallets taking off. Consumers are showing interest in wallets with integrated loyalty programs. Other potential add-ons, like in-app, in-browser, and P2P payments, will also start fueling adoption. This strategy has been proved successful in China with platforms like WeChat and Alipay.
In full, the report:
- Forecasts the growth of US in-store mobile payments volume and users through 2020.
- Measures mobile wallet user engagement by forecasting mobile payments' share of their annual retail spending.
- Reviews the performance of major mobile wallets like Apple Pay and Samsung Pay.
- Addresses the key barriers that are preventing mobile in-store payments from taking off.
- Identifies the growth drivers that will ultimately carve a path for mainstream adoption.
To get your copy of this invaluable guide, choose one of these options:
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The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of how mobile payments are rapidly evolving.
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