Google already had a mobile payment solution in the form of Google Wallet, and many in the industry are curious as to how Android Pay will differ from its current iteration. The big difference is that AT&T, Verizon, and T-Mobile have penned deals with Google to preinstall Android Pay on phones when the service launches, targeting Q3 of 2015.
Once launched, Google states that Android Pay will be accepted by more than 700,000 physical stores and enabled in over 1,000 mobile apps. The revamped payment solution comes into a market space that has seen steady growth since Apple Pay was released in late 2014. It is important to note that while Apple Pay has seen positive growth, its user base is limited to those that own either an iPhone 6 or an iPhone 5S paired with the Apple Watch. For physical store purchases, Android Pay will be enabled on all Android-based devices with Near-Field Communication (NFC) on board. With Google’s Android operating system currently accounting for close to 80 percent of the smartphone market, many more people will now find themselves with a mobile payments app on their phone, as Android Pay helps fill the gaps that Apple Pay can’t fill.
For physical merchants, the only equipment they would need is either a terminal that can accept NFC-based transactions, or a Pin Pad with the same added NFC hardware. With many merchants currently upgrading equipment to meet the looming EMV transition date of October 1st, 2015, the solutions available that meet both EMV and NFC requirements are already here.
Contact Newtek Merchant Solutions today to discuss your mobile payments strategy.