The Payments News You Need: October 2015

It’s time to round up the biggest stories in the payments industry—the top scoops and developing trends that stand to change this space and herald innovation. In this edition, we’re covering October 2015. Let’s dive in!  

Mobile Payments 

Samsung Pay’s First Month in the US: After being welcomed with open arms in Korea, where 1.5 million transactions were made in a month, Samsung Pay made its US debut at the end of September. Its first month of challenging Apple Pay and Android Pay has come to a close, and now, the service plans to add 14 banks and allow gift card integration. 

Verizon Gets on Board with Samsung: After resisting support of Samsung Pay, the carrier ultimately got on board just over a week after the mobile payment service’s US launch. Verizon users need to update their phones to access the new way to pay. 

Apple Pay Had a Slow First Year: The numbers are in, and year one with Apple Pay shows that the mobile payments option wasn’t an instant hit. Aite Group found that it was only used for about 1 percent of US purchases. Still, with more players joining the mobile game in 2015, the future of these offerings could be very different come next year.

Capital One Enters the Mobile Payments Game: This month, Capital One announced a wallet service to rival those from Apple Pay, Android Pay and Samsung Pay. It was the first big bank to do so, but not the last in October. The decision highlights the fact that many shoppers aren’t strangers to banking with their phones, so using them to make payments could be a natural next step. 

Chase Also Joins the Mobile Payments Market: Chase joined Capital One this month with the announcement of Chase Pay, which works both online and in-store. Chase Pay does differ from services like Apple Pay and Android Pay as it uses a QR code, sidestepping NFC-based payments. 

Omnichannel 

Target and Kohl’s Amp Up Omnichannel Efforts: Both retailers are taking more steps to get ahead of the competition. Target is promising to beat or match the prices of competing stores like Costco, Sam’s Club and even Amazon—online and in-store. Kohl’s, meanwhile, is experimenting with same-day delivery and improving its mobile app to make navigating the store’s departments a better experience. 

Finish Line Debuts “Epic Finish” Program: The store is making an omnichannel push to help shoppers better identify with its products. Among materials contributing to the experience are videos, ads, photos of famous brand partners (think NBA players) and increased online and social media communication with shoppers. 

Retail and Payments Trends and Technologies

Study Finds that Buying Habits and Drivers Vary by Generation: A new study broke down what shoppers look for in a retail experience. It found that millennials are swayed by same-day delivery more than those ages 35 to 69. Millennials are also fans of heading into a physical store to buy—more so than older generations. They’re also bigger fans of mobile wallets. 

Music App Shazam Identifies More Than Music: Once an app that let users identify a song on the radio, Shazam has now teamed up with Target to serve up a “Shazam to Shop” experience both via TV ads and in a print magazine campaign. By scanning the app’s logo on a page or screen, users will be greeted with an experience that lets them interact with and buy the items they see.  

Citi Takes ATMs Beyond the Card (and Screen): Dipping a card at the ATM and following on-screen prompts may soon be a thing of the past for Citi cardholders. With the new system, customers use a mobile app to walk through each step of the process and authenticate their transaction of choice using one of three security options: NFC, a QR code or an eye scan. 

Security

Talk of EMV Scam: While EMV as a whole may be a step toward making shopping safer, some scammers are using the fact that not all cardholders have received a chip card to collect customer information. Their approach is to email a fake link so users can sign up for an EMV card, then steal the information they’ve gathered. 

Goode Intelligence Report Talks Biometrics:  The report had high hopes for the future of biometrics, predicting that $5.6 trillion worth of mobile transactions will be secured by biometrics in the next five years. That number, says Goode, will account for 226 billion purchases. 

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