An opportunity for increased sales and conversions
Mobile wallets have been in the news recently, with much of the focus on the relatively slow adoption of mobile wallets in North America. When looking at statistics though, the answer we get often depends on the question we ask. Rather focus on a few mobile wallets, we might instead ask, “What percentage of online purchases are made using stored credentials?”
According to Mckinsey, the answer to this question is a much bigger number - already around 50 percent. Every time we purchase an app or movie in the Play Store, buy something on Amazon Prime, or shop at our favorite web store, the chances are good that we’re using digitally-stored credentials. Mobile wallets represent just a slice of a broader set of digital payment options already accessible from mobile devices.
For online shoppers, convenience is king
Few customers have the patience to key in payment card and address details on a small screen device like a phone. Unlike the point of sale, where mobile wallets provide only minimal added convenience, for online purchases the difference in convenience is huge. For online merchants, providing access to stored credentials is essential. Consumers purchasing online would much prefer to authenticate themselves with a thumbprint or password than key in a hundred or more characters. This consumer behavior explains why according to the same Mckinsey study, total U.S. digital wallet transactions (broader than just mobile wallets) is forecast to grow to $1.2 trillion by 2020, representing approximately 18-20 percent of retail spending. For wallets, online commerce is where the action is.
About Google Pay
Google Pay is a new service offered by Google, implemented using the new Google Pay API. Google is one of the world’s most recognized brands and Google users across the globe have hundreds of millions of credit and debit cards saved to various Google accounts. These users make purchases on Google properties like the Google Play, YouTube, Chrome and more.
With the new Google Pay API, merchants can reach these same customers by letting them use their cards on file with Google to make quick, easy purchases from mobile apps and websites when they’re shopping from mobile devices or using the Chrome browser.
For mobile users, this offers a new level of convenience. Even if I’ve never visited a merchant before, as a consumer, I can select “Google Pay” as an alternative to keying in payment card details. Google will look up any payment cards I have on file, present them to me, and allow me to choose the credential to use as shown above.
Google Pay extends Android Pay functionality, however unlike Android Pay which can be used at the point of sale (tapping your phone in a store or restaurant) Google Pay is designed for online purchases only. Consumers that have already activated their Android Pay wallet can continue to use their Android Pay credentials, providing a seamless transition for users and merchants already supporting Android Pay. The main difference when users Google Pay is that they can access any payment card on file with Google, even if they’ve never activated a mobile wallet.
Lowering the barriers to online commerce
For merchants, Google Pay is an important innovation. Juniper Research estimates approximately 24 million Android Pay users in 2017, and Google already has hundreds of millions of cards on file across its various platforms. By removing the need for consumers to pre-load a payment card into a wallet, merchants can benefit from faster checkouts, more conversions, and increased sales.
While Google Pay is significant for all merchants, it may be especially important for small merchants competing with larger online retailers. Google Pay helps level the playing field, providing all merchants with the opportunity to offer the same streamlined purchase experience that users expect from tier-one retailers. Consumers can enjoy a seamless checkout experience even if they’re visiting a merchant’s website for the first time making it easier to attract new customers.
Google Pay and Vantiv
Vantiv is presently one of just a few payment providers able to offer Google Pay functionality for merchants. Vantiv’s Google Pay integration utilizes an existing server-to-server connection between Vantiv and Google that facilitates the secure and efficient transfer of payment credentials and provides developers and merchants with a straightforward integration experience.
Whether merchants are already using Android Pay with Vantiv, or are just getting started with digital wallets, Vantiv can help merchants get up and running quickly.
Developer resources for Google Pay will be available at Vantiv’s developer portal, Vantiv O.N.E., in the Mobile & Digital Wallets section once Google officially unveils the Google Pay API. Extensive documentation and code examples on Vantiv O.N.E explain how developers can add Google Pay functionality to their Android App or their website.
If you have questions or comments about Google Pay or any other digital wallet, we’d love to get your thoughts and comments.