Tech Media Alert; Adoption of Smart Wallets; Apple Pay,
Google Wallet and Wocket (NASDAQ:NXTD); Ultimately Consumers Will Have the
Final Decision
NEW YORK
- April 13, 2015 (Investorideas.com Newswire) Investorideas.com (http://www.investorideas.com),
a global news source covering leading sectors including mobile payments and
biometrics reports on user experience and the adoption of new payment
technologies including Apple Pay, Google Wallet and the Wocket®.
With
Apple Pay users reporting limited retailer acceptance and problems at checkout,
even with its growing adoption rate, it is not the 'holy grail' for new payment
technologies. This opens the door for competition - and the game is definitely
on.
Everyone
seems to be taking a different approach, but most are similar in that they are
still focusing on mobile payments.
Wocket is
taking a different path; a smart wallet designed to protect your identity and
replace all the cards in your wallet, with no smart phone or cloud required.
The
Company has released user video testimonials for Wocket smart wallet on social
media for http://www.wocketwallet.com. The payment technology
is currently being used and tested by early access pre-order customers and is
still expected to ship to pre-paid consumers this spring.
One video
shows a user at Whole Foods and paying for a taxi with the Wocket Smart Wallet:
http://youtu.be/DQ7pyFQ8fs0
The other
video shows a transaction with the Wocket smart wallet at an ATM, something
that obviously can't be done with a smartphone:
Gino Pereira, Chief Executive Officer of NXT-ID, Inc. (NXTD) said: "Wocket® is a 'smart wallet' so users expect us to be convenient and secure. What's special though and makes Wocket stand out from competitors is its ubiquitous acceptance. While other digital payment solutions are convenient, they can only be used at limited locations. Wocket truly replaces your entire wallet because it is accepted everywhere you use your cards today - even ATM's."
According
to a recently published report from Phoenix Marketing International, *'Apple
Pay: The First Four Months': "Just four months after Apple Pay went live
on October 20, the Apple Pay adoption rate came in at an impressive 11% of all
credit card-owning households and 66% of iPhone 6 owners, according to new
research from Phoenix Marketing International among 3,002 credit cardholders.
Most adopters (82%) linked a credit card to Apple Pay but over half (53%)
linked a debit card and 20% included a GPR prepaid card in the new
wallet."
"However,
the early-on transaction potential is being undercut by low repeat usage and
lost payment opportunities," said Greg Weed, Director of Card Research at
Phoenix. "The demand is there: 59% of Apple Pay users have gone into a
store and asked to make a purchase with Apple Pay. But so is the
disappointment: 47% visited a store that was listed as an Apple Pay merchant
only to find out that the specific store they visited did not accept (or were not
ready to accept) Apple Pay."
"Even
though Apple Pay users generally give the scheme high marks and 23% expect to
significantly increase use over the next 3 months, problems at check-out are
downgrading transaction potential," said Leon Majors, Senior Vice
President at Phoenix. "Two-out-of-three Apple Pay users have reported a
problem at checkout - mostly related to terminals not working or taking too
long to make the transaction, inaccurate posting of transactions and the
inability of cashiers to help buyers who needed assistance in using Apple
Pay," Majors added.
"Since
Apple Pay is still in an introductory mode and the NFC acceptance network still
has a long way to go, adding a continuously updated 'local store directory' to
the Passbook app is a necessary, short-term product improvement," said Mr.
Weed. "Posting a list of participating retailers on a website is not
cutting it. In the last four months, 48% of users have paid with Apple Pay just
one time and that's not going to cut it either."
Jean-Noel
Georges from Frost & Sullivan recently told InvestorIdeas "Apple's
announcement of their decision to use NFC technology surprised the payment
industry. In 2014 it was unexpected news because at this time, many firms were
looking at alternative payment solutions such as HCE.
In 2013,
Samsung and VISA did a global strategic alliance to offer the NFC payment
service to clients without the need to involve Telecom operators. With the LoopPay
acquisition (also financed by Visa) Samsung could address magnetic stripe
technology. This would guarantee a bigger market adoption rate as this solution
could work with traditional payment terminals, thus, merchants would not need
to upgrade their existing terminals.
As a
result of the two previous announcements, Google was forced to react. ApplePay
has had a really good start in the US market and has whetted the appetite of
Google for mobile payment. According to Frost & Sullivan research, Google,
an OS Maker, attained 72.8 percent of the global market share in 2013 and is
expected to reach 78.5 percent by 2018.
Even if
Google's strategy initially appears as a reaction rather than a forecasted
response, I think that the company already has deep payment knowledge and a
large smartphone portfolio to include in their payment offering; the firm is
well placed in the mobile payment race.
Ultimately,
consumers will have the final decision."
Read this release in full at http://www.investorideas.com/CO/NXT/news/2015/04131.asp
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