This story was delivered to BI Intelligence "Payments Briefing" subscribers. To learn more and subscribe, please click here.Apple gained a key victory following a preliminary decision from the Australian Competition and Consumer Commission (ACCC) against several of Australia's largest banks, which are fighting to collectively negotiate with Apple over access to its mobile wallet technology,according to Bloomberg.For context, these banks, whichinclude Commonwealth Bank, National Australia Bank, and Westpac, are looking to gain access to the iPhone hardware necessary to build their own mobile wallets rather than joining Apple Pay. The banks plan to bring additional information forward to reverse the decision before a final opinion is due in March.Partnering with Apple could actually be more beneficial for the banks than continuing to fight the technology giant.It's likely that a significant share of these banks' customers are Apple users. Apple users represent a significant portion of the Australian smartphone marketthe phone provider had 40% of the Australian smartphone market share in Q2 2016, according to IDC. These consumers who may be interested in leveraging their smartphone's mobile wallet could become frustrated with these banks for not offering the payment option, and may look for other options such as a new bank or card issuer.For now, it seems like Australian consumers want Apple Pay. ANZ, the fourth major Australian bank, launched Apple Pay for its Visa, MasterCard, and Amex holders earlier this year. Following the partnership, demand for deposit accounts "skyrocketed" almost immediately. And since then, 20% of the banks customers have reportedly uploaded their payment information into the service, according toThe Australian. ANZ shows that, though banks could gain from a proprietary productbank-based Android wallets are very popular in Australiaworking with Apple could help them quickly capitalize on pent-up mobile payment demand from iPhone users, who have largely been left out of the ecosystem in the country to now.The preliminary ruling is a good sign for Apple, because allowing banks to build their own NFC-based wallets for iPhones could have major implications.Beyond the potential implications in Australia, the decision could set a precedent in other regions, like South Korea, that have companies looking for similar access to iPhone hardware.In addition, the move could limit adoption, by pushing users away from Apple's proprietary product and towards an equivalent or better competitor. For Apple, that could ultimately impact revenue in some markets, because the firm could lose out on the per-transaction fee it charges card providers for payments through Apple Pay.Mobile payments are becoming more popular thanks to services such as Apple Pay, but they still face some high barriers, such asconsumers' continued loyalty to traditional payment methods and fragmented acceptance among merchants. But as loyalty programs are integrated and more consumers rely on their mobile wallets for other features like in-app payments, adoption and usage will surge over the next few years.BI Intelligence, Business Insider's premium research service, has compiled a detailed report on mobile payments that forecasts the growth of in-store mobile payments in the U.S., analyzes the performance of major mobile wallets like Apple Pay, Android Pay, and Samsung Pay, and addresses the barriers holding mobile payments back as well as the benefits that will propel adoption.Here are some key takeaways from the report:In our latest US in-store mobile payments forecast, we find that volume will reach $75 billion this year. We expect volume to pick up significantly by 2020, reaching $503 billion. This reflects a compound annual growth rate (CAGR) of 80% between 2015 and 2020.Consumer interest is the primary barrier to mobile payments adoption. Surveys indicate that the issue is less the mobile wallet itself and more that people remain loyal to traditional payment methods and show little enthusiasm for picking up new habits.Integrated loyalty programs and other add-on features will be key to mobile wallets taking off. Consumers are showing interest in wallets with integrated loyalty programs. Other potential add-ons, like in-app, in-browser, and P2P payments, will also start fueling adoption. This strategy has been proved successful in China with platforms like WeChat and Alipay.In full, the report: Forecasts the growth of US in-store mobile payments volume and users through 2020.Measures mobile wallet user engagement by forecasting mobile payments' share of their annual retail spending.Reviews the performance of major mobile wallets like Apple Pay and Samsung Pay.Addresses the key barriers that are preventing mobile in-store payments from taking off.Identifies the growth drivers that will ultimately carve a path for mainstream adoption.To get your copy of this invaluable guide, choose one of these options:Subscribe to an ALL-ACCESS Membership with BI Intelligence and gain immediate access to this report AND over 100 other expertly researched deep-dive reports, subscriptions to all of our daily newsletters, and much more. >> START A MEMBERSHIPPurchase the report and download it immediately from our research store. >> BUY THE REPORTThe choice is yours. But however you decide to acquire this report, youve given yourself a powerful advantage in your understanding of how mobile payments are rapidly evolving.Join the conversation about this story
Click here to read full news..
