DES MOINES, Iowa (11/13/15)--Financial institution clients of The Members Group (TMG) have begun enrolling in two of the newest digital wallet solutions, Android Pay and Samsung Pay. TMG is beginning to work with interested clients and anticipates having pilots live by late 2015 or early 2016.
“Today, only the largest issuers are participating in these wallets,” said Brandon Kuehl, TMG manager of product development. “TMG is prepared to change that beginning this week. Our market-leader positioning with digital-wallet enablement has paved a quick and easy path to Android Pay and Samsung Pay access for TMG’s card-issuing clients.”
In a recent client webinar, TMG’s digital and product teams asked nearly 75 attendees if they plan to implement each solution. For both Samsung Pay and Android Pay, 86% of respondents said they plan to make the solution available to their cardholders.
TMG will enroll clients in both Android Pay and Samsung Pay via a proprietary implementation package that makes digital-wallet enrollment simple and quick for community financial institutions. It’s the same approach TMG executed during Apple Pay enrollment.
Today, more than 75% of TMG’s financial institution clients are live or have a project under way with Apple Pay. From January to October year, the number of Apple Pay transactions processed by TMG increased by a factor greater than 10. Per-transaction totals have also experienced a significant lift. Whereas the average Apple Pay transaction amount was $14.43 in January of this year, it was $36.25 in October.
McDonald’s, Starbucks, Walgreens and vending machines are the four most-popular places from which TMG’s Apple Pay transactions are originating.
When asked for their perspectives on cardholder preference for Android Pay versus Samsung Pay, 54% of TMG clients surveyed expected Samsung Pay to be more attractive to their cardholders; 40% answered Android Pay. This may be due to Samsung Pay’s promise to be available nearly anywhere credit and debit cards are accepted today. Samsung Pay uses magnetic secure transmission, which mimics the technology used by credit and debit cards.
Android Pay and Apple Pay, on the other hand, only work in point-of-sale environments where near-field communication is enabled.
According to a survey released last week from Trustev, 20% of iPhone users who have access to Apple Pay have tried it; 14% of those with a Samsung Galaxy S5 or S6 have tried Android Pay or Samsung Pay. In another survey, 30% of consumers said they would be willing to switch financial institutions to gain access to mobile payments.
“For credit unions and community banks, enabling mobile payments today is about readiness for heightened consumer demand tomorrow,” said Kuehl. “People love their plastic, but media attention to data breaches, cybersecurity attacks and the online fraud fallout from EMV chip cards in the U.S. rightly has them concerned about security. The added security offered by many of these mobile solutions is anticipated to strike a chord with consumers, giving them a real reason to demand their financial institutions allow them access to digital wallets.”