The world of mobile payments is evolving at a rapid rate as the OEMs vie for market share, banks assess their myriad of options and new service providers enter the market on an almost daily basis. Android Pay is one of the banks’ key options when offering mobile payments to their customers, but what is all the fuss about?
What is Android Pay?
Launched in September 2015, Android Pay is a mobile payment solution that offers people simplicity and security when paying for things with and within their Android devices.
Android Pay utilizes near field communication (NFC) technology to allow consumers to pay for goods with a simple tap in store. In addition, Android Pay enables users to easily make payments in select Android apps, reducing friction during checkout.
But what does Android Pay mean for banks, and why should they be looking to integrate?
How Big is the Opportunity?
Integrating with Android Pay represents a significant opportunity for banks to maintain and expand their customer base.
Firstly, the majority of their customers will no doubt be Android users. Seven out of ten of Android devices in the US already support Android Pay, and regular software updates and device launches mean that the number of compatible devices is only going to increase. If banks want to offer a range of options and convenience to many of their customers, they should integrate with Android Pay.
Also, people want to use mobile payments, and are more than willing to move around to access the latest payments technology. For example, 44% of UK consumers say they are prepared to switch bank accounts if their current bank does not offer mobile payments. Integrating with Android Pay, therefore, is a no-brainer for banks looking to show the market that they are up-to-speed with the latest technology by providing a large portion of their customer base with a mobile payments service.
With these market factors in mind, the question banks should be asking is not whether to integrate with Android Pay, but how soon can they integrate with Android Pay.
Is it Secure?
With tokenization, the actual 16-digit card number is never shared with merchants during the transaction and not stored on the phone. In addition, a dynamic security code is used that changes with each transaction. The role of the token service provider has come to the fore to manage the tokenization process, including hosting the secure token vault and ensuring customers’ and banks’ sensitive data is kept secure. When deploying tokenization technology to integrate with platforms like Android pay, banks have a number of options. Here’s a few tips on selecting a platform.
Check out this news announcement to learn more about Bell ID’s role in Android Pay integration.
