The days, where people paid with credit or ec card in stores could be soon a thing of the past because of mobile payment. In the USA e.g. Apple Pay is headed in the right direction. In Germany mobile payments haven’t progressed so far because Germans are careful with new technologies.
For a lot of Germans payment by Smartphone is not an option. The causes that lie behind it, according to an analysis from PwC (Pricewaterhousekeepers) on the issue “Mobile Payment in Deutschland 2020 – Marktpotenzial und Erfolgsfaktoren” from July 2014 are the absence of added value and comfort for the user.
Therefore, a mobile payment system should provide much more than a payment function e.g. useful product information or product recommendations. Furthermore, the registration in a payment application should be very fast and straightforward and should as well correspond to safety standards. In addition a payment application, that features different mobile devices and operating systems needs to be developed. According to the analysis of PwC not only the absence added value and comfort, but also the skepticism of Germans and the few Pay-App providers are the reason why Pay-Apps are hardly used. After the launch of Apple Pay in the USA in September, experts hope for a breakthrough for mobile payment systems with the launch in Germany in 2015.
Apple Pay is growing rapidly
Apples mobile payment system brings hope for a significant breakthrough of mobile payment systems – not only in the USA. Although Apple Pay is only offered in the USA but the launch in Germany is awaited with excitement for the beginning of 2015.
But what is behind it all? Basically Apple Pay is used at the card terminal in the stationary sales (point of sale) but also for online and In-App purchases. Here by payment in stationary sales with ec or credit card should be replaced while users should pay their online or In-App purchases with Apple Pay instead of PayPal. The functionality is very easy. Next to an iPhone 6, 6 plus or an Apple Watch customers have to use an existing credit card, which is connected with the iTunes-Store. Alternative they have to add a new credit card which they have to photograph or scan before. Then the credit card will be integrated into the Passbook-App of the iPhone and defined as a standard payment method. If customers want to pay by Apple Pay they just have to go near the card terminal with their iPhone 6, 6 plus or Apple Watch. After a few seconds the iPhone notices to the NFC-Terminal and demands a fingerprint verification. Alternative to the TouchID it is possible to enter the password. For using Apple Pay there is no need to block the iPhone. Up to now the three big credit card companies MasterCard, Visa and American Express support Apple Pay. Lately SunTrust, Barclaycard, USAA, TD Bank North America and the Commerzbank have been supporting it too.
PayPal under pressure
While Apple’s mobile Payment system is going to be more and more successful the online payment service PayPal is increasingly under pressure. Founded in 1998 as a subsidiary of Ebay, PayPal is meanwhile integrated in a lot of iOS-and Android-Apps. But next to Apple Pay the banks ensure that PayPal gets competitors. So a lot of banks in Germany are joining together to develop their own mobile payment system as an alternative to PayPal. This own mobile payment system is still nameless, but has the abbreviation BV. According to an online-report of the German newspaper “DIE WELT”, the mobile payment system will start at the end of 2015. By then at the latest it might be definitively over with the monopoly position of PayPal.
Mobile Payment and Mobile Marketing
In this context, the question arises, what mobile payment systems means for the future of mobile marketing and why we should use Apple Pay, PayPal and Co. Just as mobile payment systems are underestimated, a rather marginal role is awarded to mobile marketing for mobile payment systems. Regarding to that the chances for mobile Marketing in this area are big, even though the issue of data protection plays an important role. So a lot of data privacy specialists criticize sufficient assurances during the payment by mobile payment systems. However, in the case of anonymous mass data they can be used to generate more and more significant revenue. This so called Data-Based-Marketing for example can help to recognize early trends and to realize an appropriate marketing strategy.
The time has not yet come for mobile payment systems. But if it comes, Apple, PayPal and Co. will be engaged in tough competition. At the end of the day it doesn’t matter for the users. The competition is driving the development of mobile payment systems and ensures that more and more users see the purpose and comfort of these mobile payment systems and trust in it.
 Mobile Payment in Deutschland 2020 – Marktpotenzial und Erfolgsfaktoren (http://www.pwc.de/de/digitale-transformation/assets/pwc-analyse-mobile-payment.pdf)
 DIE WELT http://www.welt.de/finanzen/article135499703/Banken-fordern-Paypal-mit-Bezahldienst-heraus.html, Abruf: 17.12.2014