Over the past 18 months we have had to change so many everyday things in our lives, including how we shop and purchase items. As a result, the rise in mobile payment revolution has been swift and strong as more people choose the ease and efficiency of paying with their phones, adding to the rise of digital wallets. In fact, according to a report by ACI Worldwide, there was a 46% increase in the use of digital wallets in 2020. WorldPay’s Global Payments Report 2021 showed that both cash and card in-store payments have been overtaken by digital wallet payments over the last year. For instance, hotel payment processing has already become contactless and cashless nowadays. Not only that, digital wallets are becoming more popular in the e-commerce realm as well, and by 2024 digital wallet payments are forecasted to make up 50% of all e-commerce payments worldwide. Two of the biggest players in this space are the tech giants Apple and Google, who both offer mobile payment systems.
Apple Pay allows users to make payments in person, via iOS app and online. Apple Pay works with any merchant that accepts contactless payments and with an extra layer of security, thanks to Apple’s two-factor authentication. Apple will now be adding an ID feature to Apple Pay, which will allow people to scan their driving licence or state ID to use at airports and other locations. According to Apple vice president Jennifer Bailey, this feature is going to be released as a part of iOS 15, the next version of the tech giant’s operating system. Apple is also looking at other updates to its digital wallet which include digital car keys, which were previously only supported by BMW. If you think that’s exciting, Apple is taking it one step further with plans to include features to unlock homes, hotel rooms and even offices, and partnering with over 1000 Hyatt properties globally to enable virtual hotel room keys. Apple Pay, along with Apple News, Apple Card, Apple Music and Apple TV+ account for 16% of the company’s total revenue. How has this affected Apple shares? With the globe shifting towards a mobile way of life, big tech companies like Apple are poised to benefit, so keep an eye on Apple shares to see how this shift could impact them.
Google’s mobile payment system and digital wallet lets users make contactless payments with their Android phones, watches and even tablets, and is available in 40 countries around the world with 150 million users currently. Google Pay also supports a host of other features like car keys, boarding passes, movie tickets and more. Google Pay can even search your Gmail inbox and Google Photos to find receipts. Recently, Google partnered with Wise and Western Union (remittance firms) so that its US users can make international transfers. The plan is to expand this offering to 280 countries by the end of the year, thanks to Google’s new partnerships. Josh Woodward, director of product management at Google, explained the company’s decision: “Even with Covid-19, a lot of people have relocated around the world and we wanted to focus on how we can help facilitate these payments.” The rise of digital wallets and the extra functions being added on a consistent basis has companies like Google entering the ring with traditional financial companies as they look towards becoming an all-in-one solution for their users’ financial needs. What’s next for Google Pay? The sky is the limit for Google it seems, as the company continues to innovate and branch into different areas of tech every year.
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As brands like Apple and Google offer more services to their customers, and therefore gain more loyalty, it will be interesting to see how the price of Apple shares and Google shares continue to fare, as more people around the world are ditching their cash and even debit cards in favour of simply waving their phones to pay. In keeping with the shift towards mobile, stock trading app platforms have become popular amongst traders and are handy for those wanting to trade CFDs on-the-go. If you’d like to take a bite out of the big tech stocks in the market, without having to purchase shares, you can trade Apple shares prices in the form of Contracts for Difference (CFDs), which allow you to speculate on the rising and falling of share prices and take advantage of price movements in both directions. Learn more by downloading a reliable CFD stock app and improve your market knowledge to make more informed trading decisions.