Google has announced a new mobile payment system coming out soon for all Android users: Android Pay. Similar to Apple Pay, Android Pay allows users with Android systems on their cellular devices to upload credit, debit, and pre-paid card information into a digital wallet.
Android Pay will have several advantages over its competitors in the mobile payment industry, including the accessibility offered for Android device users. Android Pay will be available to “seven out of 10” Android device owners on devices that operate with NFC and are running on Android KitKat 4.4 and higher. Apple Pay, which is Android Pay’s largest competitor, is only featured on the iPhone 6, 6 Plus, or Apple Watch.
As merchants move toward offering more payment options for consumers, Android Pay, along with its competitor, Apple Pay, are options that should be evaluated. Merchants can take advantage of accepting these types of payments with a terminal equipped with a contactless or NFC reader. In most cases, merchants are already upgrading for EMV so purchasing a terminal for both EMV and NFC payments would be ideal.
Let’s explore the benefits of Android Pay specifically:
One of the benefits of using Android Pay for in-store transactions is the speed in which a consumer can check out. Consumers will simply have to unlock their phones, place their phone by the merchant’s contactless payment terminal, and they are finished. This is a positive benefit for you, the merchant, as the time to process a transaction will be shortened significantly. In addition, the transaction details and payment confirmation from the purchase will be sent to the consumers phone.
Another perk of using Android Pay for in-store purchases is that select retailers will automatically apply the consumers loyalty program and/or special offers at checkout. This helps simplify the transaction for the consumer significantly, as the payment and application of loyalty/special offers are all done in one step. Furthermore, consumers who are involved with a loyalty program or receive special offers from a merchant using Android Pay are more likely to be returning customers, thus profiting the merchant.
Not only is Android Pay compatible for in-store purchases, but also for online retailers and purchasing apps. Instead of one having to enter in their billing/shipping information, Android Pay simplifies the online checkout experience by having a “Buy with Android Pay” option; all the consumer has to do yet again is “tap and go”, making the transaction process quick and easy. Merchants who have the option for consumers to purchase products on their website would benefit from this feature, as the expedited transaction time appeals for customers to come back and make more purchases on your site using Android Pay.
Security is Top Priority
Android Pay is teaming up with leading financial institutions and payment network systems to integrate tokenization – the new and secure option for mobile payments. When a consumer shops at a store or online with Android Pay, their credit/debit card number will not be sent over with their payment. In its place, will be a “virtual account number” that will represent their account information. Not only does this help protect the consumers personal card information, but also protects both the consumer and merchant’s safety in case a credit card data breach occurs.
A consumer can also have peace of mind in case their phone was to ever to get lost or stolen. Instead of the consumer having to call their credit/debit card companies to cancel their cards, an Android Pay user would just have to access their “Android Device Manager”, which would give them the options to instantly lock their device, secure it with a new password, and wipe the system clean of all personal information instantly.
Compatible with More Phones
Unlike Apple Pay, which only works on Apple phones, Android Pay is more accessible on a variety of different phones. Some examples of compatible phones that will have access to Android Pay include Samsung, HTC, LG, and Motorola. According to Statista, there were approximately 76 million Android usersin 2014. Having a multitude of phone companies selling phones with the Android operating system will allow the opportunity for the merchant to receive more business.
Although there is no official release date yet, Android Pay will be accessible on Google Play to download in the near future.