Menu
INSIGHT: How does Google’s Android Pay stack up against Apple and Samsung?

INSIGHT: How does Google’s Android Pay stack up against Apple and Samsung?

Will Android Pay dominate the market for mobile payments and go head to head with Apple Pay? Currently, it is looking unlikely.

Google recently announced Android Pay at its I/O conference. The internet giant outlined a set of APIs that will allow developers to add an Android Pay button to their app and banks to enable payments in their existing applications, facilitating in-app and in-store payments on Android devices with KitKat 4.4 and above.

This is a big deal. With 70 percent of Android handsets incorporating NFC and 50% supporting KitKat 4.4+, that’s a big audience.

We already know that American Express, Discover, MasterCard and Visa are on board. MasterCard has mooted its launch date to be ‘in the coming months’.

So, the global support network is in place, but broader questions remain: Will it take on Apple Pay? How will it compare, or even compete, with Samsung’s offering?

Comparing Android Pay to Apple Pay & Samsung Pay

Google’s open approach contrasts starkly with that of Apple, which has continued to maintain tight control over all integrated hardware and software components.

Meanwhile, Apple Pay utilises an embedded secure element (eSE) in its proprietary handsets.

Conversely, Google holds just a tiny percentage of the device market (with its Nexus handsets). Its strategy is to win the battle for OS dominance and leave dedicated device manufacturers like Samsung to do battle with Apple in the hardware space.

It is winning, too; in Q1/15 the Android OS accounted for 78 percent of the global market.

By rolling Android Pay into its OS Google can, over time, enable more than three quarters of all handsets, everywhere.

Samsung’s proprietary offering, Samsung Pay, like Apple Pay, makes use of embedded secure elements (eSE). It doesn’t, however, control the end-to-end process and still supports host card emulation (HCE) leaving the issuers with options, unlike with Apple’s solution.

What does Android Pay mean for banks?

If the issuing bank is hidden behind the ‘Pay’ button, they lose their branding and give up their independence.

They can launch only when the schemes are ready and have to send all transactions to the schemes for de-tokenisation. This is already a concern with the Apple Pay model, but banks have no other choice.

Android Pay offers banks more options, however, so they may well look for other routes to market in addition to the schemes.

Currently, the issuer-controlled HCE option seems to offer more flexibility, more control and lower long-term costs. It also has the added benefit of supporting all Android NFC/4.4 devices across the world, unlike Apple Pay and Samsung Pay which are, for now, limited to the US.

Additionally, the launch of Android M (the next Android operating system) with its fingerprint authentication API’s, will allow this functionality to be implemented and driven right from the issuer’s own mobile banking app. An attractive prospect indeed.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags mobileApple PaySamsung PayAndroid Pay

Featured

Slideshows

EDGE 2018: Kiwis kick back with Super Rugby before NZ session

EDGE 2018: Kiwis kick back with Super Rugby before NZ session

New Zealanders kick-started EDGE 2018 with a bout of Super Rugby before a dedicated New Zealand session, in front of more than 50 partners, vendors and distributors on Hamilton Island.​

EDGE 2018: Kiwis kick back with Super Rugby before NZ session
EDGE 2018: Kiwis assess key customer priorities through NZ research

EDGE 2018: Kiwis assess key customer priorities through NZ research

EDGE 2018 kicked off with a dedicated New Zealand track, highlighting the key customer priorities across the local market, in association with Dell EMC. Delivered through EDGE Research - leveraging Kiwi data through Tech Research Asia - more than 50 partners, vendors and distributors combined during an interactive session to assess the changing spending patterns of the end-user and the subsequent impact to the channel.

EDGE 2018: Kiwis assess key customer priorities through NZ research
Show Comments