Quantcast
Channel: iTWire - author
Viewing all 58 articles
Browse latest View live

CBA says tap and pay transactions have surged in six months

0
0
CBA says tap and pay transactions have surged in six months

The Commonwealth Bank says there’s been a surge in tap and pay transactions over six months, with its own customers increasingly using their smartphones instead of their wallets when making payments.

According to new research, the CBA — one of Australia big four banks — says with its five million customer app users, tap and pay transactions have reached 16.8 million for the six months to June 2018, an increase of more than 35%.

The bank says the research shows that:

  • Major supermarkets account for one in every five tap and pay transactions, one in 10 take place at major fast food chains and petrol stations and other major retailers account for one in every 20 transactions.
  • Men make up the majority (75%) of digital wallet customers.
  • Half of digital wallet users are aged between 20-29 years old and around one third are 30-39 years old.
  • The average number of monthly transactions per user is 13 and the average dollar value per transaction is about $25.

{loadposition peter}Release of the research comes as the CBA announced that Visa cardholders can now make contactless payments via its tap and pay functionality in the app.

Samsung Pay and Google Pay are also now available for Visa cardholders as well as payments via Fitbit and Garmin’s payment-enabled smartwatches.

According to Michael Baumann, CBA’s acting executive general manager, Everyday Banking, by enabling Visa across the suite of CBA supported digital wallets the bank was combining “choice and convenience for more customers”.

“Since 2013, our customers have been able to use their smartphones to make payments. By extending the suite of CBA supported digital wallets to our Visa cardholders, we’re providing our customers with even more options to make a payment at the point of sale, whether that be through the CommBank app or their smartwatch.

“We’re seeing customers who are stretched for time taking advantage of the ease and convenience of digital payments. Our data has revealed that groceries, food and beverages and petrol are the most commonly purchased goods.”

Axel Boye-Moller, Visa’s head of Product for Australia, New Zealand and South Pacific, said that in addition to convenience, mobile payments offered enhanced customer control.

“Mobile payments bring even more to the customer experience than just convenience. Each time a payment is made, these devices can deliver instant alerts and enable customers to manage their accounts while on the go. This is a great example of enhancing the customer experience by increasing both ease of use and control.”


Mobile payment survey predicts cash will be around for a long time

0
0
Mobile payment survey predicts cash will be around for a long time

A survey of mobile payments by research service Venture Insights indicates that it will take much more than two decades for Australia to become a cashless society.

The survey, conducted in September and covering 1005 people in the metro areas of Sydney, Melbourne and Brisbane, found that about a third used their smartphones at least once weekly to pay for a product or a service.

More than half (52%) who used smartphones to pay used the app supplied by their bank, with Apple Pay (25%), Android Pay (17%) and Samsung Pay (6%) following.

The survey found the use of Apple Pay, Android Pay and Samsung Pay to be highest in the 25-34 age group, with 56.5% using at least one of these services.

{loadposition sam08}People with higher incomes tended to use their bank payment apps less and vice versa.

Those who had never used their smartphones to pay for anything comprised 42.5% of the sample.

The survey said that while data for other countries varied, there was a consensus that small, wealthy countries like Singapore and Sweden would become cashless societies ahead of others.

"Accounting for generational shift, Venture Insights projects that overall cash payments will reduce to 22% within a decade, and to around 16% by 2034," the company said.

"Even our aggressive forecast (assuming the same rate of decline as between 2007-2016 which included the introduction of tap'n'go payments and mobile payments) predicts cash usages of 19% in 2025 and 9% in 2034, suggesting it will be well over two decades before Australia becomes a true cashless society."

CBA folds, to offer Apple Pay from January 2019

0
0
CBA folds, to offer Apple Pay from January 2019

The Commonwealth Bank appears to have thrown in the towel as far as keeping Apple Pay out goes, and has said the payment option will be made available to its own customers and those of Bankwest.

In a statement issued on Friday, the bank said this move constituted part of its "commitment to becoming a better, simpler bank and providing the best digital banking experience for our customers".

The CBA, along with Bendigo and Adelaide Bank, National Australia Bank and Westpac, attempted to cut a deal with Apple over Apple Pay, but the Australian Competition and Consumer Commission last year denied them the right to negotiate collectively.

Subsequently, Bendigo and Adelaide Bank quietly adopted Apple Pay.

{loadposition sam08}ANZ was not part of this cartel, and has been offering Apple Pay since April 2016.

No mention was made of the tussle in Friday's statement. Angus Sullivan, group executive of Retail Banking Services at CBA, said: “We recently wrote to our customers asking them what the bank could do differently and we received lots of excellent suggestions.

“One of the things we heard repeatedly from our customers is that they want Apple Pay and we’re delighted to be making it available in January 2019.

“We are committed to making changes that benefit our customers and simplify our business. We will continue to look for more opportunities to innovate and listen, to ensure our customers get the best experience when they bank with us. Responding to customer demand for Apple Pay underscores our commitment to becoming a better, simpler bank.

“Launching Apple Pay, alongside our No.1 rated CommBank app, will ensure our customers have the very best mobile banking experience."

A survey conducted by analyst group Telsyte in February indicated the CBA customers were likely to switch banks if their existing bank did not provide their choice of payment mechanism.

When CBA was asked at the time about the reaction from customers, a spokesman told iTWire: "When customers consider who they want to bank with, they take into account a number of factors. A bank's digital banking and payments offering is an important factor.

"Our award-winning CommBank app is the number one free banking app in Australia, with 4.8 million CommBank app users able to take advantage of its tools including Spend Tracker and PayID."

Jennifer Bailey, Apple’s vice-president of Internet Services, said on Friday: “Apple Pay is the No.1 mobile contactless payment service worldwide and we are thrilled Commonwealth Bank customers will soon be able to benefit from a convenient and secure way to pay using the Apple devices they love or within their favourite apps or on the Web.”

It remains to be seen what Westpac and NAB will do with regards to Apple Pay. All four of the big banks offer Samsung Pay and NAB last month signed an agreement with Alipay to make the service available in 2019.

Australians boost take-up of digital payments: report

0
0
Australians boost take-up of digital payments: report

A majority of Australians now use digital payments, according to a new report revealing that awareness of digital payments is now an almost universal 93.9%, with 72.4% using at least one digital payment method over an average 12-month period.

According to the survey by Roy Morgan Research, the increasing use of digital payments is likely to continue increasing and to move Australia more towards a cashless and cardless society – posing a potential threat to existing banks if they don’t take on the new disrupters and technologies.

The survey found that over the last 12 months, 7.2% of the Australian population over 14 (1.5 million) have used the relatively new and much publicised "buy now, pay later" systems such as Afterpay, zipMoney and zipPay.

And other newer digital payment systems outside of the major banks are the fintechs, (including; Android Pay, Apple Pay, Samsung Pay and Google Wallet) which were used by 6.8% (1.4 million) over the last 12 months – a result higher than the banks' own mobile payments systems which were used by 5.8% or 1.2 million.

{loadposition peter}Roy Morgan says that although the well-established bill payment services (BPAY and Australia Post BillPay) are the market leaders with 59.1%, and 43.9% using online payment platforms (PayPal, Visa Checkout, MasterPass and Western Union Pay), the newer systems represent a major challenge to these systems.

peter roy morgan

According to Roy Morgan, the use of "buy now, pay later" is well above the average (7.2%) as a payment method for Gen Z (11.6%) and millennials (11.4%) – and older generations make very little use of "buy now, pay later" with pre-boomers only 0.2% and baby boomers 1.8%. Gen X (6.0%) is only marginally below average.

Females (9.8%) are well above males (4.4%) when it comes to their use of "buy now, pay later".

The survey showed that, in a similar pattern to "buy now, pay later", Gen Z with 10.6% and millennials with 10.4% are the greatest users of fintechs, including Android Pay, Apple Pay, Samsung Pay and Google Wallet. By contrast, only 0.6% of pre-boomers and 2.2% of baby boomers use these fintechs.

But, a big difference to users of "buy now, pay later" where females are ahead, is the fact that 8.8% of males use fintechs compared to only 5.0% of females.

Users of the latest technology, as shown by the Roy Morgan Technology Adoption Segments, are the most likely to use fintechs. These "technology early adopters" have a very high 12.4% using fintechs, compared to only 2.4% of those considered to be "technophobes".

“Australians are moving rapidly towards new ways of making payments, changing from the traditional dominance of the major banks to using new entrants such as technology companies (fintechs) and the new innovative start-ups such as Afterpay with their highly successful ‘buy now, pay later’,” says Norman Morris, industry communications director, Roy Morgan.

“As the users of the new payment technologies move from the domain of the ‘technology early adopters’ through to ‘professional technology mainstream’ and other segments, they are likely to become more universal. The increasing use of new payment technologies is being aided by the growing proliferation and development of smart phones and wearables with integrated technology such as Apple Pay and Google Pay, and an increasing number of financial institutions enabling their customers to make payments with these devices.

“All these changes pose a threat to traditional payment types such as credit cards and cash as consumers in effect can access small amounts of credit instantly. Consumers will increasingly want simplified and convenient payment systems and the industry will need to adapt to these expectations by providing more innovative solutions. Traditional financial institutions may need to collaborate with Fintechs and other third parties to keep up with the rapidly changing digital payment environment.”

Graphic: courtesy Roy Morgan

Samsung Pay taps on to Opal

0
0
Samsung Pay taps on to Opal

A new update to the Samsung Pay app allows use with NSW Opal public transport terminals.

The updated Samsung Pay app allows users to set a default payment card to tap on and off Opal terminals with their phone while still locked.

Australians will be among the first to have access to this feature.

“Samsung is investing in delivering cutting-edge solutions for Samsung Pay to help provide customers with maximum convenience and security for their mobile wallet," said head of Samsung Pay in Australia Mark Hodgson.

{loadposition stephen08}"As a first step, we are rolling out this technology to work with the Opal system in NSW.

“We worked with Transport for NSW to build a solution that is designed to offer a seamless experience for people choosing to use Samsung Pay when commuting across the NSW Opal network.

“We pride ourselves on working with organisations to help create convenient solutions for customers, and we are constantly on the lookout for new opportunities to make this happen."

With the updated app, people will be able to use Samsung phones with any Opal terminal that accepts credit or debit cards. That includes Sydney Trains, NSW TrainLink Intercity rail services, light rail and Sydney Ferries services, but not buses (yet).

Contactless fares are charged at the peak adult Opal fare for the trip.

Samsung Pay Opal portrait

Contactless payments — including those made with a phone or other device that's connected to a credit card — have been available for certain Opal trips for around a year, following an earlier trial on the Manly-Circular Quay ferry.

Public Transport Victoria recently introduced a digital myki card that works with Google Pay, but not Apple Pay.

Latitude launches 5th new payment platform for the year

0
0
Latitude launches 5th new payment platform for the year

Melbourne-based consumer finance business Latituide Financial Services has launched its fifth mobile payment platform this year, with the launch of Fitbit Pay and Garmin Pay.

Latitude Managing Director Commercial, Dave Gelbak says with Fitbit Pay and Garmin Pay, customers that have Latitude’s Mastercard products will be able to tap and pay with their eligible devices to make contactless payments.  

Gelbak says customers’ card details are stored securely and never exposed in the open as part of the transaction process.

The Thursday launch of Fitbit Pay and Garmin Pay caps off a series of launches for Latitude this year, including a total of five mobile payment platforms since August – releasing Apple Pay, Android Pay, Samsung Pay, Fitbit Pay and Garmin Pay.

{loadposition peter}According to Gelbak this latest launch makes Latitude just the second issuer in Australia with integration in all five wallets, and heralded another milestone for Latitude and an important new offering for its customers.

“Latitude is committed to bringing payments innovations to its customer base as fast as possible, and wearables have been growing exponentially globally with the ability to make payments, which further enhances the customer experience.

“Latitude is capitalising on this new technology to provide a seamless payments experience and to enable customers to have their choice of preferred digital payment provider.”

Latitude claims 2.6 million existing customers operating across a range of financial services products including personal loans, credit cards, insurance, and interest-free promotional and retail offers, in the Australian and New Zealand markets.

CBA adds Samsung Pay to MasterCard options

0
0
CBA adds Samsung Pay to MasterCard options

Commonwealth Bank MasterCard holders are now able to use Samsung Pay for transactions.

Samsung Pay users can add their Commonwealth Bank MasterCard credit or debit cards to the app, and then make payments with their compatible Samsung tablets and wearables.

"With more than $6 billion of transactions across the CommBank app each week we know that our customers love using their phones to make payments," said Commonwealth Bank general manager of everyday banking and payments, Michael Baumann.

"Since 2013 our customers have been able to use their smartphones to make payments. By offering customers the ability to pay with Samsung Pay we are combining choice and convenience."

{loadposition stephen08}Security features of Samsung Pay include the use of the company's Knox security platform, tokenised card numbers, and a requirement for PIN, iris or fingerprint authentication prior to payment.

Compatible devices include all Galaxy S6, Galaxy S7 and Galaxy S8 models, plus Gear S2 and S3 smart watches.

As reported earlier today, there is no indication that the Commonwealth Bank is planning to support Apple Pay.

CUA offers PayID payments facility to members

0
0
CUA offers PayID payments facility to members

Members of CUA, Australia’s largest credit union, can now register a PayID access, a faster, simple and smarter way to make and receive payments.

After an initial rollout of PayID and faster payments for CUA team members, to coincide with the national launch of the New Payments Platform earlier this month, CUA head of Payments, Matthew Lobdell, said CUA was now offering the functionality to all members.

“In the first 10 days following the introduction of the NPP and PayID, we had 70% of our CUA team members register a PayID and start sending and receiving faster payments,” Lobdell said.

“We’ve had plenty of enthusiastic members asking us about the NPP since its industry launch, and we’ve had a really positive reception from our own team members. So we are pleased to now be bringing the ability to both send and receive faster payments, and to register an easy-to-remember PayID, to all CUA members.”

{loadposition peter}CUA members can now register their PayID using CUA online banking, as an alternative way to send and receive money, without needing to remember their BSB and account number. Members have a choice of whether they’d prefer to use their mobile phone number, email address or ABN (for businesses) as their PayID. Members can also send and receive faster payments using a BSB and account number, as they do right now.

Lobdell said over the coming months, CUA would look to also integrate NPP functionality into its new mobile banking app, which is in the final stages of development – and encouraged those CUA members who aren’t already using online banking to also set-up online banking and register their PayID.

“This faster way to pay will dramatically change the way that Australians manage their money. When you make a payment from a CUA account or someone sends money to you, the funds will generally be received in less than a minute between participating financial institutions, 24/7 and 365 days a year.

“That is a significant change from the current system, where it can take up to three days for funds to clear and then appear in the destination account.

“Another key benefit is that it is a simpler way to pay. Gone are the days of having to look up your BSB and account number when you’re requesting a payment – now you can simply give your PayID to the person making the payment to you.

“The third benefit is that it is a smarter way to pay, as you can include a much more detailed description of up to 280 characters with each payment, making it easier to keep a record of your payments.”

Lobdell said the rollout of faster payments and PayID was another example of how CUA was working to be available to members anywhere, anytime, by improving the digital experience and choice of channels for members.

“CUA is committed to continually innovating and offering our members a choice of new digital channels. That’s why we’ve invested significant time and resources into the NPP project, and we are excited to be amongst the early adopters across the industry,” he said.

“This builds on the continually expanding digital offering that our members are already benefitting from, like our mobile wallet offering, with CUA among a limited number of financial institutions to be offering members a choice between all three digital wallets – Apple Pay, Google Pay or Samsung Pay.

“We were also the first financial institution to sign on to trial Australia’s Post’s new online identity verification tool, Digital iD, which is now being trialled for members applying to open selected transaction accounts online.”


Samsung nabs NAB as all four big banks now offer Samsung Pay

0
0
Samsung nabs NAB as all four big banks now offer Samsung Pay

Samsung has nabbed victory by nabbing major Aussie bank NAB in its quest to see Australia's four big banks all offering access to Samsung Pay, as ever more consumers make payments via mobile devices.

Samsung proudly boasts its Samsung Pay service "has become the first smartphone mobile wallet provider in Australia to be made available to customers of the ‘Big Four’ banks in Australia, following today’s partnership announcement with National Australia Bank", as part of the NAB's "NAB Pay" system.

We're told that "NAB’s customers — along with those of the three other ‘Big Four’ banks and over 45 financial institutions in Australia — now have access to Samsung Pay and can load their Visa credit and / or debit cards to make payments via compatible Samsung smartphone devices and wearable products".

As you'd expect, Samsung says this announcement demonstrates its "pledge to making mobile wallets a convenient part of everyday life for millions of Australians", and naturally, Samsung states that today’s announcement positions the company "as a leading player in the mobile payments landscape", which certainly makes it quite the Samsung Pay day!

{loadposition alex08}The service is described as not only providing "users with a simple and secure way to pay, but also allows users to load their loyalty cards to capture reward points at the point of sale, which lessens their reliance on a physical wallet".

Mark Hodgson, head of Product and Services at Samsung Electronics Australia, said: “We’re thrilled to be able provide the Samsung Pay experience to even more Australians. Our partnership with NAB builds on our commitment to providing a simple and secure digital wallet experience to every Australian using a Samsung smartphone or wearable.

“Today’s announcement also represents an important milestone as we are now able to provide Samsung Pay to all major banking customers across the nation. We believe that our collaboration with partners like NAB will help further enhance our mobile experience for Australians and look forward evolving the portfolio further over the upcoming year.”

Article continues below image, please read on!

The announcement comes after the very recent launch of the Galaxy S9 and S9+ smartphones which Samsung states "have received positive reviews from many technology experts and customers alike. In Australia, pre-sales results for the S9 and S9+ have broken previous records for Samsung in this market".

Angus Gilfillan, NAB executive general manager of Consumer Lending, said: "NAB is giving customers more choice when it comes to digital wallets.

“In addition to our own mobile banking app and NAB Pay, we are continuing to invest in giving our customers the best digital payments experience. We know our customers increasingly want to be able to pay for their purchases quickly and conveniently, and Samsung Pay is a safe and secure digital wallet that they can now use."

Samsung reminds us that Samsung Pay "offers multiple security features; a tokenised card number for the user, which means no sensitive payment card information is stored on the device, and it also requires pre-payment authentication via PIN, iris or fingerprint".

The Samsung Pay app is housed on Samsung’s "Knox" security platform, which the company says "has undergone a series of rigorous security procedures making Samsung Pay a secure and trusted payment platform".

Additionally, Samsung says, "Users also receive remote access to the Find My Mobile website to easily lock their mobile phone device and prevent access to Samsung Pay if their device is misplaced."

Samsung explains that "in order to prevent access to Samsung Pay if the device is misplaced, users must log into Samsung's Find My Mobile site using their Samsung Account login details, select ‘Lock my Device’ and then click ‘Lock’.”

Having first launched in Australia in June 2016, Samsung Pay has "partnered with hundreds of banks worldwide, processing millions of transactions via the Samsung Pay payments platform".

Compatible Samsung smartphones include:

Galaxy S9 and S9+, Galaxy Note8, Galaxy S8 and S8+, Galaxy S7 and 7 edge, Galaxy S6 edge+, Galaxy S6 and S6 edge, Galaxy A7, Galaxy A5, Galaxy Note5, Galaxy J5 Pro.

Compatible Galaxy wearables include:

Gear S3, Gear S2, Gear Sport.

More about Samsung Pay is here.

iTWire's coverage of CBA's Samsung Pay service is here, ANZ is here, Westpac is here, Suncorp is here, Bendigo Bank is here, with stacks of other Australian financial institutions here.

VIDEO INTERVIEW: Samsung Pay's Australian success also now available in six continents

0
0
VIDEO INTERVIEW: Samsung Pay's Australian success also now available in six continents

We recently spoke to Mark Hodgson, head of Samsung Pay in Australia, who shared his thoughts on the convenience of mobile wallets; in the meantime, Samsung has announced 1.3 billion Samsung Pay transactions.

Billed as being "simple, secure and almost anywhere", Samsung Pay has reached that milestone globally in 24 markets – which has included Australia since June 2015, and which secured Australia's four major banks by March 2018, for a total of 45 financial institutions in Australia at that time. 

Now comes Samsung Pay's third anniversary, having originally launched in South Korea on 20 August 2015.

Since then, Samsung reports its payment service having "experienced significant global growth and is now available in six continents and 24 markets, including the latest market, South Africa".

{loadposition alex08}Samsung stated: "Thanks to the support and partnership of thousands of banks and countless network, merchant and service providers across the globe, Samsung recently passed more than 1.3 billion transactions globally."

The six continents are: North America, South America, Europe, Asia, Africa and Oceania.

The 24 markets are: South Korea, the US, China, Spain, Singapore, Australia, Brazil, Puerto Rico, Russia, Thailand, Malaysia, India, Sweden, the UAE, Taiwan, Switzerland, Hong Kong, the UK, Vietnam, Mexico, Italy, Canada and South Africa, with "preliminary access" available in France.

D.J. Koh, president and chief executive of IT and Mobile Communications Division, Samsung Electronics, said: “Since we launched Samsung Pay three years ago, we have been dedicated to delivering a mobile wallet platform that is simple, secure and works almost anywhere. We have been expanding its availability and forming strategic partnerships in each market to meet the unique needs of their users.

“And we’re not limiting ourselves to a mobile wallet – by integrating with our other mobile services, consumers will be able to earn Samsung Rewards points, use Bixby for a more seamless payment experience and more.”

In Australia, before the above news was launched, I conducted a video interview with Hodgson, to share his thoughts on why using mobile wallets is the perfect balance of secure and convenient.

Here is the video interview; the article continues thereafter, please read on!

As we all know, consumers these days value convenience above all else.

They’re looking for things to be quick and easy, and that’s why mobile payments and digital wallets have become such a popular way to make purchases. But letting a phone hold access to you bank accounts and credit cards can be risky.

With recent events like [the] Facebook/Cambridge Analytica [scandal], it’s now more important than ever for consumers to take a look at how they are protecting their personal data.

That’s why it’s so important for consumers to use technology that offers a balance of security with convenience.

Samsung Pay is meeting this fine line between convenient and secure, and Samsung states its Knox Technology mobile payments are both secure and protected, as Knox uses tokenisation of card details.

Payment card information is protected by substituting card numbers with a unique code identified using algorithms. This ‘token’ is then used to send the transaction, meaning your direct card details like the card number have not been transmitted in the transaction.

But protecting consumer’s personal data goes far beyond tokenisation. Technologies like one-time password requirements and user authentication through iris scans, fingerprint or passcode are all equally important to protecting consumers banking details.

Ultimately, with the right security in place, digital wallets can offer the ability to pay with peace of mind.

So, what is more news of Samsung Pay's global growth?

Well, we're told the growth of Samsung Pay highlights the company’s localised and open approach to mobile payments.

With approximately 2000 banking and financial partners globally, we're told Samsung Pay offers value-added services based on local market needs, including:

  • Online payments, now available in 15 markets, including Australia, Brazil, Switzerland and Taiwan.
  • Transit cards in 5 markets, including China, Hong Kong, Singapore, South Korea and the UK.
  • Loyalty and membership cards in 20 markets, including Canada, France, Mexico and Sweden.
  • ATM transactions in 5 markets including Russia, South Korea, the UAE, the US and Vietnam.
  • Samsung Rewards, offering points to purchase merchant partner vouchers and Samsung products and services, available in 10 markets, including India, Malaysia, Spain and the US.
  • Pay Planner, helping users spend more wisely by tracking their transaction history and analysing their consumption pattern in South Korea and the UAE.
  • Bixby integration, allowing users to make purchases at popular merchants with one simple request.

Samsung tells us that it takes "a localised approach for every launch, ensuring that the partnerships, value-added services and capabilities of Samsung Pay are customised for each market to provide the optimum mobile wallet service".

"Samsung also works with existing payment services so that when the service is introduced in the market, it’s seamlessly integrated into the payment infrastructure.

"For example, in Hong Kong, Samsung exclusively partnered with Octopus Card to bring NFC-enabled Octopus payments to the market’s diverse transit and retail establishments, offering customers a fast and simple payment experience.

"Samsung’s partnership network extends with support from retail and corporate leaders, including 'Ticket', one of the largest benefits card providers for organisations in Brazil, and El Corte Inglés department store in Spain.

"By taking a localised approach to partnerships like these, millions of users benefit from having a centralized and secure payments platform across multiple card types, and exclusive rewards such as product vouchers, instant rebates and extra loyalty points."

Samsung states its "model of open collaboration extends into the broader payments industry through partnerships with major financial institutions, including Alipay (China), WeChat Pay (China), BHIM UPI (India), PAYCO (South Korea), Chase Pay (US), PayPal (US), and NAPAS (Vietnam).

"By partnering with these financial leaders", Samsung says its service "provides consumers with a more functional mobile payment platform. Additionally, with PayPal, users can now pay offline, and soon online via Samsung Pay".

"Other partnerships, such as those with Chase Pay and PAYCO (South Korea) use Samsung’s MST technology, giving customers even greater flexibility in how they make payments."

Here's the Samsung Pay infographic, which you can see in full resolution by clicking here or the image below:

CBA says tap and pay transactions have surged in six months

0
0
CBA says tap and pay transactions have surged in six months

The Commonwealth Bank says there’s been a surge in tap and pay transactions over six months, with its own customers increasingly using their smartphones instead of their wallets when making payments.

According to new research, the CBA — one of Australia big four banks — says with its five million customer app users, tap and pay transactions have reached 16.8 million for the six months to June 2018, an increase of more than 35%.

The bank says the research shows that:

  • Major supermarkets account for one in every five tap and pay transactions, one in 10 take place at major fast food chains and petrol stations and other major retailers account for one in every 20 transactions.
  • Men make up the majority (75%) of digital wallet customers.
  • Half of digital wallet users are aged between 20-29 years old and around one third are 30-39 years old.
  • The average number of monthly transactions per user is 13 and the average dollar value per transaction is about $25.

{loadposition peter}Release of the research comes as the CBA announced that Visa cardholders can now make contactless payments via its tap and pay functionality in the app.

Samsung Pay and Google Pay are also now available for Visa cardholders as well as payments via Fitbit and Garmin’s payment-enabled smartwatches.

According to Michael Baumann, CBA’s acting executive general manager, Everyday Banking, by enabling Visa across the suite of CBA supported digital wallets the bank was combining “choice and convenience for more customers”.

“Since 2013, our customers have been able to use their smartphones to make payments. By extending the suite of CBA supported digital wallets to our Visa cardholders, we’re providing our customers with even more options to make a payment at the point of sale, whether that be through the CommBank app or their smartwatch.

“We’re seeing customers who are stretched for time taking advantage of the ease and convenience of digital payments. Our data has revealed that groceries, food and beverages and petrol are the most commonly purchased goods.”

Axel Boye-Moller, Visa’s head of Product for Australia, New Zealand and South Pacific, said that in addition to convenience, mobile payments offered enhanced customer control.

“Mobile payments bring even more to the customer experience than just convenience. Each time a payment is made, these devices can deliver instant alerts and enable customers to manage their accounts while on the go. This is a great example of enhancing the customer experience by increasing both ease of use and control.”

Mobile payment survey predicts cash will be around for a long time

0
0
Mobile payment survey predicts cash will be around for a long time

A survey of mobile payments by research service Venture Insights indicates that it will take much more than two decades for Australia to become a cashless society.

The survey, conducted in September and covering 1005 people in the metro areas of Sydney, Melbourne and Brisbane, found that about a third used their smartphones at least once weekly to pay for a product or a service.

More than half (52%) who used smartphones to pay used the app supplied by their bank, with Apple Pay (25%), Android Pay (17%) and Samsung Pay (6%) following.

The survey found the use of Apple Pay, Android Pay and Samsung Pay to be highest in the 25-34 age group, with 56.5% using at least one of these services.

{loadposition sam08}People with higher incomes tended to use their bank payment apps less and vice versa.

Those who had never used their smartphones to pay for anything comprised 42.5% of the sample.

The survey said that while data for other countries varied, there was a consensus that small, wealthy countries like Singapore and Sweden would become cashless societies ahead of others.

"Accounting for generational shift, Venture Insights projects that overall cash payments will reduce to 22% within a decade, and to around 16% by 2034," the company said.

"Even our aggressive forecast (assuming the same rate of decline as between 2007-2016 which included the introduction of tap'n'go payments and mobile payments) predicts cash usages of 19% in 2025 and 9% in 2034, suggesting it will be well over two decades before Australia becomes a true cashless society."

CBA folds, to offer Apple Pay from January 2019

0
0
CBA folds, to offer Apple Pay from January 2019

The Commonwealth Bank appears to have thrown in the towel as far as keeping Apple Pay out goes, and has said the payment option will be made available to its own customers and those of Bankwest.

In a statement issued on Friday, the bank said this move constituted part of its "commitment to becoming a better, simpler bank and providing the best digital banking experience for our customers".

The CBA, along with Bendigo and Adelaide Bank, National Australia Bank and Westpac, attempted to cut a deal with Apple over Apple Pay, but the Australian Competition and Consumer Commission last year denied them the right to negotiate collectively.

Subsequently, Bendigo and Adelaide Bank quietly adopted Apple Pay.

{loadposition sam08}ANZ was not part of this cartel, and has been offering Apple Pay since April 2016.

No mention was made of the tussle in Friday's statement. Angus Sullivan, group executive of Retail Banking Services at CBA, said: “We recently wrote to our customers asking them what the bank could do differently and we received lots of excellent suggestions.

“One of the things we heard repeatedly from our customers is that they want Apple Pay and we’re delighted to be making it available in January 2019.

“We are committed to making changes that benefit our customers and simplify our business. We will continue to look for more opportunities to innovate and listen, to ensure our customers get the best experience when they bank with us. Responding to customer demand for Apple Pay underscores our commitment to becoming a better, simpler bank.

“Launching Apple Pay, alongside our No.1 rated CommBank app, will ensure our customers have the very best mobile banking experience."

A survey conducted by analyst group Telsyte in February indicated the CBA customers were likely to switch banks if their existing bank did not provide their choice of payment mechanism.

When CBA was asked at the time about the reaction from customers, a spokesman told iTWire: "When customers consider who they want to bank with, they take into account a number of factors. A bank's digital banking and payments offering is an important factor.

"Our award-winning CommBank app is the number one free banking app in Australia, with 4.8 million CommBank app users able to take advantage of its tools including Spend Tracker and PayID."

Jennifer Bailey, Apple’s vice-president of Internet Services, said on Friday: “Apple Pay is the No.1 mobile contactless payment service worldwide and we are thrilled Commonwealth Bank customers will soon be able to benefit from a convenient and secure way to pay using the Apple devices they love or within their favourite apps or on the Web.”

It remains to be seen what Westpac and NAB will do with regards to Apple Pay. All four of the big banks offer Samsung Pay and NAB last month signed an agreement with Alipay to make the service available in 2019.

Australians boost take-up of digital payments: report

0
0
Australians boost take-up of digital payments: report

A majority of Australians now use digital payments, according to a new report revealing that awareness of digital payments is now an almost universal 93.9%, with 72.4% using at least one digital payment method over an average 12-month period.

According to the survey by Roy Morgan Research, the increasing use of digital payments is likely to continue increasing and to move Australia more towards a cashless and cardless society – posing a potential threat to existing banks if they don’t take on the new disrupters and technologies.

The survey found that over the last 12 months, 7.2% of the Australian population over 14 (1.5 million) have used the relatively new and much publicised "buy now, pay later" systems such as Afterpay, zipMoney and zipPay.

And other newer digital payment systems outside of the major banks are the fintechs, (including; Android Pay, Apple Pay, Samsung Pay and Google Wallet) which were used by 6.8% (1.4 million) over the last 12 months – a result higher than the banks' own mobile payments systems which were used by 5.8% or 1.2 million.

{loadposition peter}Roy Morgan says that although the well-established bill payment services (BPAY and Australia Post BillPay) are the market leaders with 59.1%, and 43.9% using online payment platforms (PayPal, Visa Checkout, MasterPass and Western Union Pay), the newer systems represent a major challenge to these systems.

peter roy morgan

According to Roy Morgan, the use of "buy now, pay later" is well above the average (7.2%) as a payment method for Gen Z (11.6%) and millennials (11.4%) – and older generations make very little use of "buy now, pay later" with pre-boomers only 0.2% and baby boomers 1.8%. Gen X (6.0%) is only marginally below average.

Females (9.8%) are well above males (4.4%) when it comes to their use of "buy now, pay later".

The survey showed that, in a similar pattern to "buy now, pay later", Gen Z with 10.6% and millennials with 10.4% are the greatest users of fintechs, including Android Pay, Apple Pay, Samsung Pay and Google Wallet. By contrast, only 0.6% of pre-boomers and 2.2% of baby boomers use these fintechs.

But, a big difference to users of "buy now, pay later" where females are ahead, is the fact that 8.8% of males use fintechs compared to only 5.0% of females.

Users of the latest technology, as shown by the Roy Morgan Technology Adoption Segments, are the most likely to use fintechs. These "technology early adopters" have a very high 12.4% using fintechs, compared to only 2.4% of those considered to be "technophobes".

“Australians are moving rapidly towards new ways of making payments, changing from the traditional dominance of the major banks to using new entrants such as technology companies (fintechs) and the new innovative start-ups such as Afterpay with their highly successful ‘buy now, pay later’,” says Norman Morris, industry communications director, Roy Morgan.

“As the users of the new payment technologies move from the domain of the ‘technology early adopters’ through to ‘professional technology mainstream’ and other segments, they are likely to become more universal. The increasing use of new payment technologies is being aided by the growing proliferation and development of smart phones and wearables with integrated technology such as Apple Pay and Google Pay, and an increasing number of financial institutions enabling their customers to make payments with these devices.

“All these changes pose a threat to traditional payment types such as credit cards and cash as consumers in effect can access small amounts of credit instantly. Consumers will increasingly want simplified and convenient payment systems and the industry will need to adapt to these expectations by providing more innovative solutions. Traditional financial institutions may need to collaborate with Fintechs and other third parties to keep up with the rapidly changing digital payment environment.”

Graphic: courtesy Roy Morgan

Samsung Pay taps on to Opal

0
0
Samsung Pay taps on to Opal

A new update to the Samsung Pay app allows use with NSW Opal public transport terminals.

The updated Samsung Pay app allows users to set a default payment card to tap on and off Opal terminals with their phone while still locked.

Australians will be among the first to have access to this feature.

“Samsung is investing in delivering cutting-edge solutions for Samsung Pay to help provide customers with maximum convenience and security for their mobile wallet," said head of Samsung Pay in Australia Mark Hodgson.

{loadposition stephen08}"As a first step, we are rolling out this technology to work with the Opal system in NSW.

“We worked with Transport for NSW to build a solution that is designed to offer a seamless experience for people choosing to use Samsung Pay when commuting across the NSW Opal network.

“We pride ourselves on working with organisations to help create convenient solutions for customers, and we are constantly on the lookout for new opportunities to make this happen."

With the updated app, people will be able to use Samsung phones with any Opal terminal that accepts credit or debit cards. That includes Sydney Trains, NSW TrainLink Intercity rail services, light rail and Sydney Ferries services, but not buses (yet).

Contactless fares are charged at the peak adult Opal fare for the trip.

Samsung Pay Opal portrait

Contactless payments — including those made with a phone or other device that's connected to a credit card — have been available for certain Opal trips for around a year, following an earlier trial on the Manly-Circular Quay ferry.

Public Transport Victoria recently introduced a digital myki card that works with Google Pay, but not Apple Pay.


Samsung teams up with Finablr to offer money transfers in US

0
0
Samsung teams up with Finablr to offer money transfers in US

Global payments platform Finablr and Samsung Electronics America have launched a Money Transfer feature in Samsung Pay, whereby users in the US can send money to people in 47 other countries. At the moment, the feature is available within the US, but there are plans to extend it to other countries next year.

A statement from Finablr said Samsung Pay users in the US could use existing eligible pre-registered debit or credit cards to send money in most major currencies via Finablr global network.

Money Transfer is powered by Travelex, a foreign exchange firm in the Finablr group, and will show users the fees and exchange rates associated with a transfer before the money is sent.

"Finablr’s network of trusted brands, including Travelex, with its 40 years of experience in cross-border payments, and licensed by over 100 regulators globally, bring security, reliability and peace of mind to the Samsung Pay users of this feature, which uses tokenised credentials and is backed by Samsung Knox security," the company said.

{loadposition sam08}“Our consumers are global and have friends and family around the world. Samsung is excited to enable users to send money from the US to the rest of world by making it simple, secure and transparent,” said Sang Ahn, vice-president and division head, Content & Services, Samsung Electronics America.

“Money Transfer is a first step in our vision to evolve Samsung Pay into a platform that makes users’ financial lives more convenient. The range of services in Samsung Pay, developed in close collaboration with industry leaders such as Finablr, positions us to positively impact consumers’ everyday financial experiences.”

Promoth Manghat, group chief executive officer at Finablr, commented: “We are delighted to be partnering with Samsung to launch this new in-app cross-border payments capability. Underpinned by our integrated technology platform, this service demonstrates our ability to drive payments innovation.

"Combining our industry-leading network and pioneering technology with Samsung’s leadership in the mobile device market allows us to innovate at a scale that is unique in the US$127 trillion global cross-border payments market.

"This partnership advances our mission to meet the evolving needs of financial consumers and further strengthens our position as a partner of choice for global payments and technology companies.”

Samsung Pay and Finder launch 'Promoted Cards', a new credit card shopping feature

0
0
Samsung Pay and Finder launch 'Promoted Cards', a new credit card shopping feature

A first-of-its-kind feature in Australia has launched through Samsung Pay and comparison service Finder, promising to take "shopping for credit cards to the next level of convenience" via Samsung's "Samsung Pay" digital wallet mobile payment app.

Samsung Electronics Australia and Finder have announced the launch of "Promoted Cards".

We're told this is "a new credit card shopping feature for Samsung Pay, enabling everyday Australians to discover compelling credit card offers from participating financial institutions (which at the time of launch include Amex, Citibank and Virgin Money, with more issuers being promised to be added over time).

Obviously to be even more useful, you'd want to see more cards from the well-known banks, credit unions and other relevant financial institutions, but things have to start somewhere, and its not as if American Express, Citibank or Virgin Money are unheard of entities, they represent three of the biggest brands in finance globally.

Now, if you already have a Samsung smartphone with Samsung Pay and are looking for this feature, we're informed that "Promoted Cards is available to all Australian Samsung Pay users from today with the latest Samsung Pay software update".

{loadposition alex08}I've used Samsung Pay - Samsung sent me $100 electronically to test the service out with a little while back, and I can happily report that it works exactly as advertised. I was even able to transfer the unused balance from one Samsung Galaxy device to another, and moving the remaining balance across was easy and painless. I was able to effortlessly use Samsung Pay in supermarkerts, convenience stores and service stations - it worked!

All I had to do was set up Samsung Pay on the Samsung smartphone I was using, add the relevant card, and then "swipe up" from the home screen to get into the Samsung Pay interface. It authenticates with my fingerprint, or a pin, and you simply tap the phone onto the usual "tap and go" card reader, and the payment is made. Naturally, Samsung Pay wants to become your default payment service, instead of Google Pay, and fi you choose to use Samsung Pay, it makes naturally sense that you make it your default payment service.

You can also use Samsung Pay with the Opal transport payment system in NSW, without the need to unlock your phone, which is a very handy feature, something that was introduced earlier in the year - and all of this has helped Samsung to double the number of transactions it has done this year, as one of its representatives confirms below. 

Article continues after this screenshot. 

So, what is more info on Samsung and Finder's new "first-of-its-kind" feature in Australia?

We're told the new feature "combines Samsung Pay’s secure digital payments platform and Finder’s deep understanding of the Australian credit card market, to empower Australians to explore and choose credit cards that best suit their interests and priorities.

"Samsung Pay users can filter offers based on categories of their choice including balance transfer, frequent flyer, rewards program, no annual fee and low interest rate. Once an offer is selected, users need only to click to complete their application via the issuer site.

"The adoption of digital wallets is rapidly growing in Australia, putting convenience at the front and centre. According to research from Finder, more than a quarter (26%) of Australians use their smartphone or smartwatch to make transactions. In fact, nearly one-in-ten (8%) say they use a digital wallet all the time".

Mark Hodgson, Head of Samsung Pay Australia said: “Samsung Pay is committed to empowering Australians’ on-the go lifestyles. Australians are embracing the convenience of using digital wallets. This year, we have seen the number of transactions in Samsung Pay double.

“Promoted Cards enables Samsung Pay users to easily and conveniently ­­discover and apply for some of the most competitive credit card offers available through the app they already use and trust to pay, all on the go.

“Our partnership with Finder, a market leader in credit card research and comparison, reflects our commitment to collaborating with partners to innovate and make life easier for Australians,” Hodgson added.

Frank Restuccia, Co-Founder and Director of Finder said: “This is the first time Finder has entered into a partnership with an app in Australia. The partnership has seen the alignment of two innovative and customer-centric brands, who are committed to providing Australians with the information they need and the latest technology to make personal finance easier.”

So, where else has the Promoted Cards feature been unveiled?

Samsung says the new Australian launch "follows the success of similar solutions driven by Samsung in other countries including France, Switzerland, Mexico and Malaysia".

And, as noted earlier above, the launch of Promoted Cards "follows Samsung Pay’s announcement earlier this year to enable users to pay on the NSW Transport Opal system without unlocking their Samsung phone. In 2018, Samsung Pay also became the first smartphone digital wallet provider to partner with all of Australia’s four major banks".

More information on Promoted Cards can be found at this "Terms and Conditions" PDF file

Here are two more screenshots:

 

Afterpay, Apple Pay, Google Pay ‘drive adoption’ of new digital payment services

0
0
Afterpay, Apple Pay, Google Pay ‘drive adoption’ of new digital payment services

Afterpay, Apple Pay and Google Pay are driving the adoption of new digital payment services according to a new report that shows an increasing proportion of Australians are utilising new digital payment methods such as buy-now-pay-later services, contactless mobile payments and wearable payment devices.

According to data from the Roy Morgan Digital Payments Report a total of 10.2% of Australians now use buy-now-pay-later services such as Afterpay or Zip Pay in an average twelve-month period (up from 7.4% a year ago).

The report also reveals that growth in the digital payments sector is being driven by Afterpay, now used by 9% (up from 6.6%), Zip Pay used by 2.4% (up from 1.5%) and Zip Money used by 1.2% (up from 0.7%).

Also increasing are contactless mobile payment services such as Apple Pay and Google Pay now used by 9.8% of Australians - up from 6.8% a year ago - with Apple Pay now used by 5.9% (up from 4%) and Google Pay now used by 3.9% (up from 3.1%). Samsung Pay was unchanged at 1%.

{loadposition peter}Roy Morgan says that while used by fewer Australians there has also been an increase for wearable payment devices, up from 0.3% a year ago to 0.4%, with the main wearable payment device Fitbit Pay used by 0.3%, up from 0.2%.

peter roy morgan one

Roy Morgan chief executive Michele Levine says marketing of technological advances in the digital payment space is paying dividends with Afterpay, Apple Pay and Google Pay attracting more customers.

“Introducing new technology to large cross-sections of society is never easy. Part of the challenge that digital payment companies face is making people aware of what exists,” says Roy Morgan CEO Michele Levine.

“Taking buy-now-pay-later technology as an example, awareness of these services has grown from 41.5% of the population a year ago, to 55.5% today. This growth in awareness is the first step to higher rates of adoption.

“Afterpay, Apple Pay, and Google Pay are expending a great deal of effort to developing new options that appeal to consumers, and clearly it’s paying off for them,” Levine said.

According to Roy Morgan, growth in newer digital payment services is coming at the expense of existing payment methods, with the use of bill payment services dropping to 56.3% of Australians from 58.8% a year ago, due to declines for both BPay, down to 50.8% from 53.1%, and Australia Post Billpay down to 15% from 16.4%.

Also declining over the past 12 months are online payment platforms such as PayPal, Western Union and Masterpass now used by 40.5% of Australians down from 43.8%.

peter roy morgan two

And use of PayPal dropped to 38% from 41.3%, MasterPass is now used by 1.6%, down from 1.9% and Western Union Pay is now used by 2% down from 2.2%. Visa Checkout held steady at 3.7%.

Roy Morgan says another digital payment service to decline is the banks’ own contactless payment services now used by 4.4% of Australians, down from 5.8% a year ago.

And now 2.7% use Commbank Tap & Pay down from 3.9%, 1% use ANZ Mobile Pay, down from 1.1% and 0.5% use NAB Pay down from 0.6%.

“Not so long ago payment systems such as BPay and PayPal were breaking new ground, but consumers are turning to technologies that promise even more convenience, especially those offered via the ubiquitous smartphone,” Levine added.

Viewing all 58 articles
Browse latest View live




Latest Images