San Antonio-based grocery company H-E-B has recently announced that all of its stores will now accept SNAP EBT (Supplemental Nutrition Assistance Program Electronic Benefit Transfer) payments directly via its mobile app or website, www.heb.com, for all curbside and home delivery orders.
The Process – HEB.com
To do so, customers need to already have or sign up for a SNAP EBT account. Customers input their SNAP EBT information into their H-E-B account on their website, heb.com, or through the My H-E-B app. After the registration is done, customers can place their orders.
During checkout, they can choose the SNAP EBT option where they simply need to enter their PIN. Electronic Benefits Transfer, or EBT, is an electronic system designed to enable a SNAP participant to pay for their food order using the benefits offered by SNAP.
However, for items or payments not eligible on SNAP EBT, one would need a debit or credit card. The company offers options for making payments using gift cards as well. One can view their SNAP EBT card balance by logging into the My H-E-B app or at heb.com. The app is available for both Android and iOS devices and is easily accessible from mobile phones or tablets.
To ensure you are buying SNAP-eligible items at HEB, you can use the filter function while doing a product search. Moreover, one can also check which items are SNAP-eligible on their online shopping cart, which gives a clear indication of the same. The contactless payment option is available at all the curbside and delivery store locations of H-E-B.
This announcement made by the grocery giant on Friday, 18 December 2020, in a news release, has made it easier for consumers to make contactless digital payments for their food or grocery orders, both for curbside or home delivery.
Currently, the grocery chain has over 230 stores having curbside services. Further, the company is planning to expand across over 20 more locations in the state by the end of 2021. The company also added that most of those locations providing curbside services will be offering home delivery facilities as well.
As per the statements of the vice president of H-E-B digital commerce operations, Esther Castelo, this is one of the most essential initiatives that their team has come up with. He further said that the team members are excited to offer their customers this convenience.
According to Texas Health and Human Services, the total number of benefit cases associated with SNAP food purchases was higher than 131,000 in the previous month of November. The best thing about H-E-B is that they provide either same-day or next-day curbside pickup services, in which the stores load the customers’ vehicles with their groceries. This service carries a $4.95 personal shopper charge.
Further, all curbside orders are made free for those who have placed their orders more than 2 days out. And the company will charge a delivery fee of $5 for all home delivery orders. You can place your home delivery or curbside orders seven days in advance.
This new feature is considered a part of the company’s expansion of the SNAP EBT facility, which H-E-B implemented as a pilot to some of its locations in May.
Under the SNAP Online Purchasing Pilot, which was launched by FNS (Food and Nutrition Service) of the US Department of Agriculture, 46 states as well as the District of Columbia are now allowing SNAP beneficiaries to purchase and pay for food and groceries digitally. The retailers participating in this program include Amazon, Walmart, ShopRite, and Aldi, among many others.
SNAP food benefits are included onto a Lone Star Card, and is designed to help people having budget constraints. These cards let people meet certain program rules, such as work rules and income limits.
Previously, H-E-B has said that it will carry the COVID-19 vaccine after it is made available at its pharmaceutical chains, and will distribute it to the public.
In fact, the grocery brand began to foresee the aftermath of the coronavirus pandemic on their industry. Many of its stores started to see much reduced traffic since the lockdown restrictions were declared worldwide. The issue was more prominently seen by mid-April when the company was experiencing initial supply issues.
It also gave rise to the number of digital app use cases among the audience willing to purchase food and groceries, which are the daily essentials. According to research, food was seen as the number one pick to make expenses after federal stimulus funds were distributed to Americans during the early days of the pandemic outbreak.
Meal kit businesses emerged victorious from the crisis, especially when restaurants were closing their doors. Following this trend, the supermarkets like HEB attempted to sell pre-made meals to their consumers.
About H-E-B (and HEB.com)
H-E-B is an American supermarket chain based in the City of San Antonio, Texas. Today, it has more than 340 stores in 150+ communities spread across the state and in northeast Mexico.
As per the 2014 revenue reports, H-E-B was ranked the 20th largest retailer in the US. The grocer donates 5% of its annual pre-tax earnings to charity in and around its store locations. The common institutions the company distributes the money to include educational institutions and food banks.
H-E-B was founded on 26 November 1905 by Florence Butt, who first opened the C.C. Butt Grocery Store at her Kerrville family home. She opened the store with her savings of $60 by realizing her need to support her poor family. The current CEO of the brand is Charles Butt, who inherited his family business in 1971.
The H-E-B Plus team aims to cater to the unique needs of the different lifestyles followed by the people of Texas. HEB is known for selling and delivering a range of services, including fruits and vegetables, bakery products, meat and seafood items, dairy products, pantry items, deli and prepared foods, frozen foods, beverages, health and beauty products, everyday essentials, baby foods and healthcare products, home and outdoor decor items, pet supplies, etc.
The company also has provisions for allowing its visitors to make charity donations of their choice with a minimum of one dollar.
Mobile technology continually improves and 2021 is bound to see some of the greatest changes. As we move into another year of living with social distancing, consumers want contactless payments and more capabilities from the comfort and safety of their own homes.
Mobile Wallet Security
It’s not enough to offer mobile wallet payment options next year. While customers want contactless payments, they also want security. Double authentication with mobile wallet payments is crucial.
Rather than just scanning the payment, users will need to enter a PIN or use the facial recognition feature. While it’s another step in the payment process, it’s still touchless and it decreases the risk of fraudulent charges.
Mobile Point of Sale
The Apple store used to be one of the only places you’d find a mobile ‘register.’ Today because of the need to have contactless payments and a way to get in and out of a store fast, mobile point of sale is more common everywhere.
mPOS units are great inside a store, checking customers out where they are rather than making them stand in line. Even big stores like Target are doing this. But, mPOS also helps merchants sell their products anywhere – farmer’s markets, trade shows, or mobile trucks.
Increased Use of AR and VR
Augmented Reality and Virtual Reality are becoming more mainstream for all industries, not just by technical companies. Healthcare companies travel, and educational companies are taking advantage too. They also provide more opportunities for companies to increase sales without seeing customers in the physical store.
Increased use of Chatbots
No one likes to sit on hold waiting for a customer service representative. Chatbots are making it easier than ever to answer customer questions instantly. This is just what customers want. In addition to everything mobile and touchless, they want instant answers without wasting time sitting on hold. Chatbots answer the most frequently asked questions quickly and if they can’t answer the question, they pass the customer onto a human advisor.
Social Shopping
There’s a reason social media influencers are the ‘big thing’ right now. Everyone wants what everyone else, which is why the rise in social shopping is so great. With the ability to scroll through Instagram or Facebook and buy what you see others buying, it increases sales quickly. Social shopping decreases the lag time between seeing an item and finding it in store or even online. It uses that instant gratification that customers love, making it easy to make impulse buys or just buy products/services they wanted while they’re thinking about it.
Mobile Technology is Making Changes
2021 is bound to be a year of big changes in the mobile technology industry. With possibilities abound, merchants can make the most of the opportunities to serve customers where and how they want service. With the ability to offer mobile and contactless payments, shopping opportunities, and even sales demonstrations, 2021 should be a year of promise and growth for merchants in all industries.
The cashless paradigm has gone from credit and debit cards to smartphones, and the next logical step appears to be wearable devices such as smartwatches and fitness trackers; however, it should be noted that wearable digital payment systems do not necessarily need to be part of smart devices. In early 2017, market research firm Tractica issued a forecast that suggested more than $500 billion worth of wearable retail transactions will be made in the year 2020; nonetheless, a more recent estimate by MasterCard Europe revises this projection closer to a billion dollars.
Contact-less payments technology is at the heart of this wearable digital wallet revolution, which is powered by Radio-Frequency Identification (RFID) and Near-Field Communications (NFC). These solutions are not exactly new; in the United States, RFID key fobs were marketed to drivers about a decade ago for the purpose of facilitating the process of paying for fuel purchases right at the pump. NFC payments were initially designed almost exclusively for smartphone, but smart wearable devices such as the Apple Watch, which links with the iPhone and the iPad, are making more sense as digital wallets.
MasterCard has a good reason to follow the wearable payments segment; the debit and credit card giant has a good opportunity to catch up to its rival visa in terms of global market share through wearable devices, which are not limited to smartwatches. Consumers who do not particularly care for smartwatches and prefer more traditional analog and digital versions can get watch straps equipped with contact-less payment technology, and MasterCard wants to be the primary processor in this regard. The company started working with luxury watchmakers in Sweden and Switzerland about a year ago, but MasterCard has recently struck partnerships with manufacturers of aftermarket watch straps to give more consumers the ability to pay with accessories they wear.
Mobile point-of-sale transactions are taking hold in Asia and Europe more so than in North America. At European brick-and-mortar stores, 61% of transactions are already contact-less, and about 16% are made with wearable devices. One aspect of wearable devices that is resonating with consumers is that many of them coming on the market are of the passive kind, which means that they do not rely on smartphone batteries to operate; this technology has been around since the key fob days, and it is regaining interest as an alternative to mobile devices such as smartwatches and smartphones, which only allow digital wallet transactions as long as their batteries will last.
Mobile payments have moved from a novelty to a necessity in recent years. In the United States, over three-quarters of consumers now use some form of mobile payment, and more businesses are adapting to this cashless, app-driven economy. With digital wallets, tap-to-pay cards, and phone apps becoming ubiquitous, in-store contactless transactions accounted for over 50% of U.S. in-person payments in 2023.
This rapid shift means that business owners – from small retailers to enterprise executives – must stay on top of the latest mobile payment trends. Adopting the right payment technologies can enhance customer experience, improve security, and even boost sales. Below, we break down the new mobile payment trends in the U.S. that your business should investigate.
New Mobile Payment Trends – Watch Out in 2025
1. Mobile Wallets Go Mainstream
Digital mobile wallets like Apple Pay, Google Pay, and Samsung Pay have become the most popular payment method worldwide, accounting for 49% of all transactions in 2022. In the U.S., adoption has skyrocketed in the past couple of years – a 2023 study found that the share of consumers using digital wallets jumped from 12% in 2022 to 48% in 2023. Mobile wallets let customers store credit/debit cards, loyalty cards, transit passes, and more on their phone, enabling fast, contactless payments with a tap or scan.
This matters because accepting mobile wallets at checkout (both in-store and online) is increasingly expected by customers. Over 75% of U.S. consumers now use mobile payment apps or accounts like PayPal, Venmo, Zelle, or Cash App, meaning your patrons likely have a preferred mobile wallet ready to use.
By enabling Apple Pay, Google Pay, and similar payment methods on your point-of-sale (POS) system or e-commerce site, you offer a faster, more convenient checkout experience. Mobile wallet transactions are encrypted and tokenized (a random token replaces the card number), which also improves security and trust. In short, mobile wallets have gone mainstream – and businesses that don’t accommodate them risk falling behind customer expectations.
2. Contactless Payments Are the New Normal
Hand-in-hand with mobile wallets is the rise of contactless payments – tapping a phone or contactless card on a reader for instant payment. What was once a nice-to-have convenience is now the norm across the United States. The COVID-19 pandemic dramatically accelerated this trend, as consumers and merchants sought safer, touch-free payment methods. The result? By 2023, more than 50% of all in-store transactions in the U.S. were contactless.
Additionally, over 70% of U.S. merchants now offer contactless payment options to their customers. Whether it’s tapping a physical NFC-enabled credit card or using a smartphone’s wallet app, Americans have come to love the speed and ease of “tap-and-go” payments.
If your business hasn’t upgraded to contactless-capable payment terminals, now is the time to do so. Customers increasingly expect to “tap to pay” at checkout for speed and hygiene reasons – one survey found 79% of Americans view contactless payments as more hygienic than handling cash or cards. Contactless transactions are also faster, reducing lines and improving throughput for stores and restaurants.
Security is strong as well: each tap-to-pay transaction uses one-time, encrypted tokens, making it extremely difficult for fraudsters to intercept payment information. Embracing contactless payments (including mobile wallet taps) not only meets customer demand but can also lead to higher customer satisfaction and loyalty. Many retailers report that once they adopted contactless payments, a majority of customers quickly adopted them for the convenience, speed, and safety they offer.
3. Mobile Point-of-Sale (mPOS) and Phone-as-Terminal Technology
Accepting payments via mobile point-of-sale (mPOS) is nothing new – for years, small businesses have used plugins or dongles (like Square readers) with phones or tablets to swipe cards at farmers’ markets and pop-up shops. What’s new is the evolution of this trend into truly hardware-free POS solutions. Tech giants have introduced “Tap to Pay” functionality that turns a standard smartphone into a payment terminal. For example, Apple’s Tap to Pay on iPhone now allows merchants to accept any contactless card or mobile wallet payment using only an iPhone – no extra card reader needed.
The phone itself can securely receive a tap from a customer’s card or smartphone. This SoftPOS (Software Point-of-Sale) approach is rolling out through payment providers such as Stripe, Square, PayPal, and others partnering with Apple and Android solutions.
mPOS and SoftPOS technology empower businesses to take payments anywhere, anytime, with minimal equipment. A craft vendor at a street fair, a food truck operator, or even an in-home service provider can accept a quick tap payment on a phone, eliminating the need to carry cash or set up a bulky register. Even in retail stores, sales associates with a phone or tablet can bust checkout lines by ringing up customers on the sales floor.
This flexibility not only improves customer experience (no one likes waiting in long lines) but can also boost sales – customers are more likely to complete a purchase if you make payment frictionless. Additionally, using phones as terminals can be cost-effective for small businesses, since you don’t need to invest in dedicated POS hardware or pay high card terminal rental fees. The bottom line: modern mobile POS solutions let you meet your customers where they are and never miss a sale, whether in-store, curbside, or at an off-site event.
4. Buy Now, Pay Later (BNPL) Options
Another payment trend that has surged via mobile and online channels is Buy Now, Pay Later (BNPL) financing. BNPL services like Affirm, Klarna, Afterpay, and PayPal Pay in 4 allow customers to split purchases into installment payments (often interest-free) at checkout. This trend has gained traction in recent years, especially among younger shoppers who prefer not to incur credit card debt. Global BNPL transaction volume has grown rapidly, reaching approximately $310 billion in 2023 and projected to exceed $565 billion by 2026.
In the U.S., millions of consumers have embraced BNPL for both online and in-store purchases (e.g., using a BNPL app’s virtual card via a mobile wallet). Retailers, from fashion brands to travel sites, now prominently offer these flexible payment plans at checkout.
Offering BNPL at checkout can be a powerful tool to boost sales and customer acquisition. Many shoppers are more likely to make a purchase or buy a more expensive item if they can pay in smaller installments over time. Studies show BNPL can increase conversion rates and average order values for merchants, especially in e-commerce. It’s essentially a modern layaway: the customer receives the product immediately, while the BNPL provider pays the merchant upfront (the merchant then pays the provider a fee).
For businesses, partnering with a BNPL provider requires minimal integration – often it’s an API or plugin for your online store or POS. Given the rapid growth of BNPL, customers may start to expect it as a payment choice alongside credit cards and PayPal. However, use it judiciously: consider your customer demographics and ticket sizes. When deployed effectively, “buy now, pay later” options can attract budget-conscious shoppers and reduce cart abandonment, giving your business an edge in conversion rate.
5. Social Commerce and In-App Purchases
Social media is no longer just for marketing – it’s becoming a direct sales channel. Social commerce is the sale of products directly through social media platforms, driven by heavy mobile usage. Shoppers can discover and purchase items without leaving apps such as Instagram, Facebook, Pinterest, or TikTok.
Instagram and Facebook offer in-app checkout for products featured in posts or ads, and TikTok launched its TikTok Shop for seamless buying while scrolling through videos. This fusion of social media and e-commerce is growing rapidly: U.S. social commerce sales jumped 26% in 2024 to $71.6 billion and are expected to surpass $100 billion by 2026. A significant portion of this growth comes from mobile users seeing a product on social media and instantly tapping “Buy” or “Shop Now.”
If your business has a social media presence, integrating shopping features can open a new revenue stream. Rather than redirecting a follower to your website, you can enable them to purchase the item they see in your post right within the app. This streamlines the customer journey and reduces friction – fewer clicks means a higher chance of conversion. Social commerce is especially popular with younger demographics (Gen Z and Millennials) who are very comfortable with mobile shopping.
Businesses can start by setting up a product catalog on Facebook/Instagram Shops or experimenting with TikTok Shop if it fits the brand. Additionally, chatbot-assisted purchases (for instance, a customer buys through Facebook Messenger or WhatsApp after interacting with a bot) are emerging, making the buying process feel like a natural conversation. While social commerce is still developing – and some users remain hesitant due to trust concerns – it’s definitely a mobile-driven trend to watch. Even if you don’t sell directly in-app yet, ensure your social profiles showcase your products and link to a mobile-friendly store, because consumers are increasingly inspired to buy through social feeds.
6. Biometric Authentication and Enhanced Security
As mobile payments proliferate, security and fraud prevention have become top priorities. One major trend is the use of biometric authentication – leveraging unique user traits like fingerprints, facial recognition, or even iris scans to verify identity for payments. If you use Apple Pay or Google Pay, you’re already familiar with this: a fingerprint or Face ID scan authorizes the transaction instead of a PIN. Biometrics are also used to unlock banking apps, approve payments, and at physical checkouts (e.g., Amazon’s palm-scanning payment at some stores). The biometric payments market is growing rapidly, with a 2022 value of $7.4 billion and projected to exceed $19 billion by 2029.
Beyond biometrics, tokenization and encryption are widely used to secure mobile transactions. For example, mobile wallet payments never transmit your actual card number, only a scrambled token. With high-profile data breaches and card fraud, many platforms now require multi-factor authentication (such as an SMS code or biometric scan) for higher-risk transactions.
All of this matters because trust and security are critical for any payment method – customers won’t use mobile payments if they feel unsafe. Fortunately, the latest mobile payment tech is making transactions more secure than traditional cards in many ways. Merchants benefit from lower fraud and chargebacks when strong authentication (like biometrics) is in place. You should ensure your payment systems support the newest security standards. For instance, if you have a mobile app or website, use payment gateways that offer 3D Secure 2.0, biometric verification, or tokenization to protect card data.
Embracing biometric-enabled payments can also speed up checkout. Customers appreciate the convenience of paying with a touch of a finger or a quick face scan, and they’re increasingly confident in the safety – 90% of U.S. consumers feel optimistic about the security of contactless payments (which often use biometrics on smartphones). By staying current with security trends such as biometrics and encryption, and with standards such as PCI DSS, your business can prevent fraud, build customer trust, and deliver a seamless payment experience.
7. Artificial Intelligence in Payments
Artificial Intelligence (AI) and Machine Learning are injecting new intelligence into the payments process. In fact, 2023 saw AI take center stage in tech (with the popularity of ChatGPT), and this is spilling into fintech and payments. AI is being used to fight fraud, personalize customer experiences, and even enable new payment interfaces. For example, machine learning models can analyze transaction patterns in real time and flag suspicious activity far more effectively than older rule-based systems. This helps payment providers and banks prevent fraud before it happens, saving merchants from costly chargebacks.
AI can also power more innovative chatbots and voice assistants – we’re seeing early versions of voice-enabled shopping where you might ask Alexa or Google Assistant to order and pay for an item. On the back end, AI supports risk assessment (deciding to approve or decline a transaction within milliseconds) and personalized offers (such as your banking app suggesting a better credit product based on your spending). AI technology could add trillions in value across industries, and the payments sector is leveraging it to enhance everything from fraud detection to customer service.
Many of these AI-driven improvements operate behind the scenes, but they have real impacts on merchants. Advanced fraud detection means fewer fraudulent transactions and chargeback headaches for business owners. If you’ve ever had to deal with chargeback disputes, you’ll appreciate that AI is helping catch fraudsters using stolen cards or testing card numbers on websites, etc. AI can also enable smoother customer experiences – for instance, an AI might auto-fill payment details, recommend the best payment option for a customer, or power a virtual assistant that answers billing questions.
AI could enable innovations such as dynamic pricing and optimized payment routing to minimize fees. For a business, the key is to partner with payment processors or platforms that leverage modern AI tools. You may not implement these technologies yourself, but when evaluating payment solutions, ask about their fraud prevention and AI capabilities. A forward-thinking payment provider using AI and machine learning will help ensure your transactions are secure and your customers have a frictionless experience.
8. Open Banking and Account-to-Account Payments
Open banking is an emerging trend that could reshape how payments work, even though it’s still early-stage in the U.S. Open banking refers to banks securely sharing financial data and payment capabilities with third-party fintech apps via APIs (with customer consent). One result of open banking is the rise of account-to-account (A2A) payments, in which funds move directly from the customer’s bank account to the merchant’s account, bypassing card networks as intermediaries.
In some regions, such as Europe and the UK (where open banking is mandated by regulation), A2A payments and instant bank transfers are becoming popular alternatives to card payments. Globally, this trend is accelerating. In 2022, A2A payments accounted for an estimated $525 billion in e-commerce transaction value (about 13% of online payments), and they’re projected to reach 11% of e-commerce payments by 2026. In the U.S., we don’t have a blanket open banking law yet. Still, fintech companies like Plaid enable consumers to link their bank accounts to apps, and new instant payment networks like FedNow (launched in 2023) and Zelle facilitate real-time bank-to-bank transfers.
Open banking and A2A payment solutions can offer lower-cost, faster payments for merchants. When a customer pays directly from their bank account (such as via ACH or open banking instant payments), transaction fees are often much lower than credit card processing fees. This can be especially attractive for industries with thin margins or for accepting large payments (where percentage-based card fees really bite). Open banking can also enable innovative financial services – for instance, an app that integrates with a user’s bank could combine payments with personal finance insights or lending offers.
While still emerging, some U.S. businesses are already accepting bank-to-bank payments via services like Venmo (which ultimately debits bank accounts) or via eCheck/ACH at checkout for online bill pay. As open banking technology matures, we may see more customers opting to pay via their banking app or via ACH on mobile, skipping card entry entirely. For now, consider offering ACH or bank transfer options for large transactions, or keep an eye on open banking payment apps as they gain traction. This trend signals a future with more payment options beyond traditional card networks, which could lead to cost savings and improved financial control for businesses.
Conclusion
Mobile payment technology is evolving at a blistering pace, and U.S. consumers are embracing these new options for convenience and security. From the ubiquity of mobile wallets and contactless taps to the rise of BNPL financing and social commerce, the way people pay is fundamentally changing. Small business owners and enterprise leaders alike should regularly assess which of these trends align with their customer needs and business goals.
Adopting mobile payment innovations can lead to faster checkouts, higher sales, and more satisfied customers – but it’s important to prioritize those that add real value to your operations. As you investigate these trends, consider starting with the basics (such as enabling mobile wallets and contactless payments if you haven’t yet), then explore strategic additions (such as offering BNPL or experimenting with social selling) based on your industry. Ensure security measures, such as biometrics and tokenization, are in place as you expand payment options, and select payment partners that leverage modern technologies, including AI and open banking, to support future growth.
Frequently Asked Questions
What are the most important mobile payment trends to focus on first?
Start with the “table stakes”: mobile wallets (Apple Pay/Google Pay) and contactless tap-to-pay, because customers increasingly expect them and they speed up checkout. Then evaluate BNPL, social commerce, and mobile POS/phone-as-terminal based on your average order value, sales channels, and where customers buy.
Do I need new hardware to accept mobile wallets and contactless payments?
Often, yes, you need NFC/contactless-capable terminals to accept tap payments in-store. The good news is that many businesses can upgrade easily through their existing payment processor or POS provider, and some “phone-as-terminal” options may reduce or eliminate extra hardware in specific setups.
Are mobile wallets and contactless payments secure for my customers and my business?
Generally, they’re very secure because they use protections like tokenization and encryption, and many payments require biometric authentication (Face ID/fingerprint). For businesses, this can reduce exposure to card data and help lower fraud risk, especially when paired with strong security standards and updated payment gateways.
Will offering Buy Now, Pay Later (BNPL) actually increase sales?
BNPL can often increase conversion rates and average order value, especially for higher-priced items and online purchases. It’s best for businesses serving customers who want flexibility (typically younger shoppers), but you should factor in provider fees and ensure it aligns with your brand and ticket sizes.
How do I know which payment options my customers actually want?
Use a mix of data and direct feedback: review your POS/POS/e-commerce reports for abandoned carts and payment method usage, ask customers at checkout, and test options (e.g., add BNPL for 60-90 days). If you sell on social platforms, monitor which posts drive clicks and consider enabling in-app checkout where it makes sense.
Mobile payments have moved from a novelty to a necessity in recent years. In the United States, over three-quarters of consumers now use some form of mobile payment, and more businesses are adapting to this cashless, app-driven economy. With digital wallets, tap-to-pay cards, and phone apps becoming ubiquitous, in-store contactless transactions accounted for over 50% of U.S. in-person payments in 2023.
This rapid shift means that business owners – from small retailers to enterprise executives – must stay on top of the latest mobile payment trends. Adopting the right payment technologies can enhance customer experience, improve security, and even boost sales. Below, we break down the new mobile payment trends in the U.S. that your business should investigate.
Mobile Payment Trends: Businesses Should Watch Out for in 2026
1. Mobile Wallets Go Mainstream
Digital mobile wallets like Apple Pay, Google Pay, and Samsung Pay have become the most popular payment method worldwide, accounting for 49% of all transactions in 2022. In the U.S., adoption has skyrocketed in the past couple of years – a 2023 study found that the share of consumers using digital wallets jumped from 12% in 2022 to 48% in 2023. Mobile wallets let customers store credit/debit cards, loyalty cards, transit passes, and more on their phone, enabling fast, contactless payments with a tap or scan.
This matters because accepting mobile wallets at checkout (both in-store and online) is increasingly expected by customers. Over 75% of U.S. consumers now use mobile payment apps or accounts like PayPal, Venmo, Zelle, or Cash App, meaning your patrons likely have a preferred mobile wallet ready to use.
By enabling Apple Pay, Google Pay, and similar options in your point-of-sale (POS) system or e-commerce site, you offer a faster, more convenient checkout experience. Mobile wallet transactions are encrypted and tokenized (a random token replaces the card number), which also improves security and trust. In short, mobile wallets have gone mainstream – and businesses that don’t accommodate them risk falling behind customer expectations.
2. Contactless Payments Are the New Normal
Hand-in-hand with mobile wallets is the rise of contactless payments – tapping a phone or contactless card on a reader for instant payment. What was once a nice-to-have convenience is now the norm across the United States. The COVID-19 pandemic dramatically accelerated this trend as consumers and merchants sought safer, touch-free payment methods. The result? By 2023, more than 50% of all in-store transactions in the U.S. were contactless.
Additionally, over 70% of U.S. merchants now offer contactless payment options to their customers. Whether it’s tapping a physical NFC-enabled credit card or using a smartphone’s wallet app, Americans have come to love the speed and ease of “tap-and-go” payments.
If your business hasn’t upgraded to contactless-capable payment terminals, now is the time. Customers increasingly expect to “tap to pay” at checkout for speed and hygiene reasons – one survey found 79% of Americans view contactless payments as more hygienic than handling cash or cards. Contactless transactions are also faster, resulting in shorter lines and higher throughput for stores or restaurants.
Security is strong as well: each tap transaction uses one-time encrypted tokens, making it extremely difficult for fraudsters to intercept payment info. Embracing contactless payments (including mobile wallet taps) not only meets customer demand but can also lead to higher customer satisfaction and loyalty. Many retailers report that once they accepted contactless, a majority of customers quickly adopted it for the convenience, speed, and safety it offers.
3. Mobile Point-of-Sale (mPOS) and Phone-as-Terminal Technology
Accepting payments via mobile point-of-sale (mPOS) is nothing new – for years, small businesses have used plugins or dongles (like Square readers) with phones or tablets to swipe cards at farmers’ markets and pop-up shops. What’s new is the evolution of this trend into truly hardware-free POS solutions. Tech giants have introduced “Tap to Pay” functionality that turns a standard smartphone into a payment terminal. For example, Apple’s Tap to Pay on iPhone now allows merchants to accept any contactless card or mobile wallet payment using only an iPhone – no extra card reader needed.
The phone itself can securely receive a tap from a customer’s card or smartphone. This SoftPOS (Software Point-of-Sale) approach is rolling out via payment providers like Stripe, Square, and PayPal, as well as Apple and Android solutions.
mPOS and SoftPOS technology empower businesses to take payments anywhere, anytime, with minimal equipment. A craft vendor at a street fair, a food truck operator, or even an in-home service provider can accept a quick tap payment on a phone, eliminating the need to carry cash or set up a bulky register. Even in retail stores, sales associates with a phone or tablet can bust checkout lines by ringing up customers on the sales floor.
This flexibility not only improves customer experience (no one likes waiting in long lines) but can also boost sales – customers are more likely to complete a purchase if you make payment frictionless. Additionally, using phones as terminals can be cost-effective for small businesses, since you don’t need to invest in dedicated POS hardware or pay high card terminal rental fees. The bottom line: modern mobile POS solutions let you meet your customers where they are and never miss a sale, whether in-store, curbside, or at an off-site event.
4. Buy Now, Pay Later (BNPL) Options
Another payment trend that has surged via mobile and online channels is Buy Now, Pay Later (BNPL) financing. BNPL services like Affirm, Klarna, Afterpay, and PayPal Pay in 4 allow customers to split purchases into installment payments (often interest-free) at checkout. This trend took off in the past few years, especially among younger shoppers who prefer not to rack up credit card debt. Global BNPL transaction volume has boomed, reaching around $310 billion in 2023 and projected to exceed $565 billion by 2026.
In the U.S., millions of consumers have embraced BNPL for both online and in-store purchases (e.g., using a BNPL app’s virtual card via a mobile wallet). Retailers, from fashion brands to travel sites, now prominently offer these flexible payment plans at checkout.
Offering BNPL at checkout can be a powerful tool to boost sales and customer acquisition. Many shoppers are more likely to make a purchase or buy a more expensive item if they can pay in smaller chunks over time. Studies show BNPL can increase conversion rates and average order values for merchants, especially in e-commerce. It’s essentially modern layaway, but the customer gets the product immediately while the BNPL provider pays the merchant upfront (the merchant then pays the provider a fee).
For businesses, partnering with a BNPL provider requires minimal integration – often it’s an API or plugin for your online store or POS. Given the rapid growth of BNPL, customers may start to expect it as a payment choice alongside credit cards and PayPal. However, use it judiciously: consider your customer demographics and ticket sizes. When deployed well, “buy now, pay later” options can attract budget-conscious shoppers and reduce cart abandonment, giving your business an edge in conversion.
5. Social Commerce and In-App Purchases
Social media is no longer just for marketing – it’s becoming a direct sales channel. Social commerce refers to selling products directly through social media platforms, and it’s a trend driven heavily by mobile usage. Shoppers can discover and purchase items without ever leaving apps like Instagram, Facebook, Pinterest, or TikTok.
Instagram and Facebook offer in-app checkout for products featured in posts or ads, and TikTok launched its TikTok Shop for seamless buying while scrolling through videos. This fusion of social media and e-commerce is growing fast: U.S. social commerce sales jumped 26% in 2024 to reach $71.6 billion, and are expected to surpass $100 billion by 2026. A major portion of this growth comes from mobile users seeing a product on social media and instantly tapping “Buy” or “Shop Now.”
If your business has a social media presence, integrating shopping features can open a new revenue stream. Rather than redirecting a follower to your website, you can enable them to purchase the item they see in your post right within the app. This streamlines the customer journey and reduces friction – fewer clicks increase the likelihood of conversion. Social commerce is especially popular with younger demographics (Gen Z and Millennials) who are very comfortable with mobile shopping.
Businesses can start by setting up a product catalog on Facebook/Instagram Shops or experimenting with TikTok Shop if it fits the brand. Additionally, chatbot-assisted purchases (for instance, a customer buys through Facebook Messenger or WhatsApp after interacting with a bot) are emerging, making the buying process feel like a natural conversation. While social commerce is still developing – and some users remain hesitant due to trust concerns – it’s definitely a mobile-driven trend to watch. Even if you don’t sell directly in-app yet, ensure your social profiles showcase your products and link to a mobile-friendly store, because consumers are increasingly inspired to buy through social feeds.
6. Biometric Authentication and Enhanced Security
As mobile payments proliferate, security and fraud prevention have become top priorities. One major trend is the use of biometric authentication – leveraging unique user traits such as fingerprints, facial recognition, or iris scans to verify identity for payments. If you use Apple Pay or Google Pay, you’re already familiar with this: a fingerprint or Face ID scan authorizes the transaction instead of a PIN. Biometrics are also used to unlock banking apps, approve payments, and even at physical checkouts (e.g., Amazon’s palm-scanning payments at some stores). The biometric payments market is growing rapidly – valued at $7.4 billion in 2022 and expected to exceed $19 billion by 2029.
Beyond biometrics, tokenization and encryption are being employed everywhere to secure mobile transactions. For example, mobile wallet payments never transmit your actual card number, only a scrambled token. And amid high-profile data breaches and card fraud, many platforms now require multi-factor authentication (such as an SMS code or biometric scan) for higher-risk transactions.
All of this matters because trust and security are critical for any payment method – customers won’t use mobile payments if they feel unsafe. Fortunately, the latest mobile payment technology is making transactions more secure than traditional card transactions in many ways. Merchants benefit from lower fraud and chargebacks when strong authentication (like biometrics) is in place. You should ensure your payment systems support the newest security standards – for instance, if you have a mobile app or website, use payment gateways that offer 3D Secure 2.0, biometric verification, or tokenization to protect card data.
Embracing biometric-enabled payments can also speed up checkout. Customers appreciate the convenience of paying with a touch of a finger or a quick face scan, and they’re increasingly confident in the safety – 90% of U.S. consumers feel confident about the security of contactless payments (which often use biometrics on smartphones). By staying current with security trends such as biometrics and encryption, and complying with standards like PCI DSS, your business can prevent fraud and build customer trust, all while providing a seamless payment experience.
7. Artificial Intelligence in Payments
Artificial Intelligence (AI) and Machine Learning are injecting new intelligence into the payments process. In fact, 2023 saw AI take center stage in tech (with the popularity of ChatGPT), and this is spilling into fintech and payments. AI is being used to fight fraud, personalize customer experiences, and even enable new payment interfaces. For example, machine learning models can analyze transaction patterns in real time and flag suspicious activity far more effectively than older rule-based systems. This helps payment providers and banks prevent fraud before it happens, saving merchants from costly chargebacks.
AI can also power smarter chatbots and voice assistants – we’re seeing early versions of voice-enabled shopping where you might ask Alexa or Google Assistant to order and pay for an item. On the back end, AI helps with risk assessment (deciding to approve or decline a transaction within milliseconds) and with personalized offers (such as your banking app suggesting a better credit product based on your spending). AI technology could add trillions of dollars in value across industries, and the payments sector is tapping into it by using AI to enhance everything from fraud detection to customer service.
Many of these AI-driven improvements operate behind the scenes, but they have real impacts on merchants. Advanced fraud detection means fewer fraudulent transactions and chargeback headaches for business owners. If you’ve ever had to deal with chargeback disputes, you’ll appreciate that AI is helping catch fraudsters using stolen cards or testing card numbers on websites, etc. AI can also enable smoother customer experiences – for instance, an AI might auto-fill payment details, recommend the best payment option for a customer, or power a virtual assistant that answers billing questions.
AI could enable innovations such as dynamic pricing and optimized payment routing to minimize fees. For a business, the key is to partner with payment processors or platforms that leverage modern AI tools. You may not implement these technologies yourself, but when evaluating payment solutions, ask about their fraud prevention and AI capabilities. A forward-thinking payment provider using AI and machine learning will help ensure your transactions are secure and your customers have a frictionless experience.
8. Open Banking and Account-to-Account Payments
Open banking is an emerging trend that could reshape how payments work, even though it’s still early-stage in the U.S. Open banking refers to banks securely sharing financial data and payment capabilities with third-party fintech apps via APIs (with customer consent). One result of open banking is the rise of account-to-account (A2A) payments, in which money moves directly from the customer’s bank account to the merchant’s account, bypassing card networks as middlemen.
In some regions like Europe and the UK (where open banking is mandated by regulations), A2A payments and instant bank transfers are becoming popular alternatives to card payments. Globally, this trend is picking up speed – in 2022, A2A payments accounted for an estimated $525 billion in e-commerce transaction value (about 13% of online payments), and they’re projected to reach 11% of e-commerce payments by 2026. In the U.S., we don’t have a blanket open banking law yet, but fintech companies like Plaid enable consumers to link their bank accounts to apps, and new instant payment networks like FedNow (launched in 2023) and Zelle are facilitating bank-to-bank transfers in real time.
Open banking and A2A payment solutions can offer merchants lower-cost, faster payments. When a customer pays directly from their bank account (such as an ACH transfer or an open banking instant payment), the transaction fees are often much smaller than credit card processing fees. This can be especially attractive for industries with thin margins or for accepting large payments (where the percentage-based card fees really cut in). Open banking can also enable innovative financial services – for instance, an app that integrates with a user’s bank could combine payments with personal finance insights or lending offers.
While still emerging, some U.S. businesses are already taking bank-to-bank payments via services like Venmo (which ultimately pulls from bank accounts), or via eCheck/ACH at checkout for online bill pay. As open banking technology matures, we may see more customers opt to pay through their banking app or via ACH on mobile, skipping card entry entirely. For now, consider offering an ACH or bank transfer option for large transactions, or keep an eye on open banking payment apps making inroads. This trend promises a future with more payment options beyond traditional card networks, which could lead to cost savings and better financial control for businesses.
Conclusion
Mobile payment technology is evolving at a blistering pace, and U.S. consumers are embracing these new options for convenience and security. From the ubiquity of mobile wallets and contactless taps to the rise of BNPL financing and social commerce, the way people pay is fundamentally changing. Small business owners and enterprise leaders alike should regularly assess which of these trends align with their customer needs and business goals.
Adopting mobile payment innovations can lead to faster checkouts, higher sales, and more satisfied customers – but it’s important to prioritize those that add real value to your operations. As you investigate these trends, consider starting with the basics (such as enabling mobile wallets and contactless payments if you haven’t yet), then explore strategic additions (such as offering BNPL or experimenting with social selling) based on your industry. Ensure that security measures, such as biometrics and tokenization, are in place as you expand payment options, and choose payment partners that leverage modern technologies, such as AI and open banking, to support future growth.
Frequently Asked Questions
What are the most important mobile payment trends to focus on first?
Start with the “table stakes”: mobile wallets (Apple Pay/Google Pay) and contactless tap-to-pay, because customers increasingly expect them and they speed up checkout. Then evaluate BNPL, social commerce, and mobile POS/phone-as-terminal based on your average order value, sales channels, and where customers buy.
Do I need new hardware to accept mobile wallets and contactless payments?
Often, yes, you need NFC- or contactless-capable terminals to accept tap payments in-store. The good news is that many businesses can upgrade easily through their existing payment processor or POS provider, and some “phone-as-terminal” options may reduce or eliminate the need for extra hardware in specific setups.
Are mobile wallets and contactless payments secure for my customers and my business?
Generally, they’re very secure because they use protections like tokenization and encryption, and many payments require biometric authentication (Face ID/fingerprint). For businesses, this can reduce exposure to card data and help lower fraud risk, especially when paired with strong security standards and updated payment gateways.
Will offering Buy Now, Pay Later (BNPL) actually increase sales?
It often can—BNPL can increase conversion rates and average order value, especially for higher-priced items and online purchases. It’s best for businesses with customers who want flexibility (often younger shoppers), but you should factor in provider fees and ensure it fits your brand and ticket sizes.
How do I know which payment options my customers actually want?
Use a mix of data and direct feedback: check your POS/e-commerce reports for abandoned carts and payment-method usage, ask customers at checkout, and test options (e.g., add BNPL for 60-90 days). If you sell on social platforms, monitor which posts drive clicks and consider enabling in-app checkout where it makes sense.
Those who’ve spent any time in China as a tourist will know first hand just how difficult it can be to perform the seemingly simple task of paying for things with a format other than cash.
One of the most popular forms of mobile payments in China is Alipay, and most people will use Alipay to make payments using a QR code on their phone. The vast majority of places won’t accept domestic staples such as Visa or Mastercard, so most travelers would have no choice but to rely on cash until Alipay’s recent intervention.
Until Ant Financial, the Alibaba affiliate that runs Alipay’s platform, made the following announcement earlier this month, users of the Alipay platform were required to have a Chinese bank account. Until now, that is, with Alipay announcing a program called “Tour Pass” through which the company will introduce a version of the Alipay app that will launch and feature full support for international debit and credit cards. Once users have download the Alipay app onto their iOS or Android device, they will be able to use their phone number to set themselves up for the international version of the app.
Alipay users will then be able to top off a pre paid virtual card from their Visa, Mastercard, Singapore’s Diners Club, or Japan’s JCB cards and begin spending all across China. The international version will not be available to Hong Kong and Macau users as there is already Alipay HK that they can use. If Hong Kong users need to use the international version of Alipay, they can do so by opening a Chinese bank account through Bank of China from within Hong Kong.
The minimum top-up amount for the 90-day prepaid card is 100 yuan and the balance will be capped at 2,000 yuan. Users will be able to top up the card multiple times.
This move allows Ant Financial to further extend its reach and dominance across the domestic Chinese market and cement themselves a place in China’s ever-growing tourism industry. In 2018, Chinese tourism saw an increase of 4.7% on their numbers from 2017, which works out to 30.5 million additional foreign visitors, to bring the total to 141 million. Ant Financial estimates that these 30.5 million tourists spent around US$73.1 billion while in the country on food, shopping, lodging, and other things.
Alipay’s biggest competitor in China’s cashless economy is WeChat Pay, run by Tencent Holdings. Both Alipay and WeChat Pay have a higher than 90% penetration rate amongst online users, according to a report from 2018 on China’s third-party mobile payments market. WeChat Pay has also announced plans to introduce access to their mobile payment platform for international visitors, only with additional support for American Express customers.
Upon Tencent’s announcement, Visa tweeted: “This partnership means that we’ll be working towards an environment where Visa cardholders will be able to use their Visa card in China at the millions of places where WeChat Pay is accepted, instead of having to rely on cash.”
Various technology giants have been looking at the emerging mobile payments sector with great interest, particularly if they have already claimed some market share with regard to mobile devices, apps, and services. The big three in this regard are Apple, Google, and Samsung, and it could be said that Apple is in the best position to remain a leader, but this does not mean that it will be an easy undertaking.
Ready for Success
ApplePay seems to have all the ingredients to carve a nice slice of the mobile payments pie: the iPhone continues to be one of the most popular mobile devices in the world, and virtually all of its models in use today have Near Field Communications (NFC) technology, not to mention the recent introduction of the Apple Card and the heavy promotion of its various digital payments options. Although the North American market is one of the most lucrative for Apple’s ambitions with regard to smartphone payments, adoption is always quicker in Asia and Europe, and it is in the latter market where the company seems to have run into a snag.
According to a report published by CNBC, European Union regulators who oversee business competition and antitrust issues have been receiving complaints related to ApplePay, enough for Margrethe Vestager, director of the EU Competition Commission, to announce that her office will be taking a closer look into the way Apple is entering the mobile payments market in the bloc.
Cause for Concern
One of the issues that EU regulators are likely to consider is the way Apple creates mobile ecosystems that rely on exclusivity for their growth. The iPhone and the iPad are locked into a single operating system, and it so happens that the iOS Wallet app does not allow users to integrate payment options that are not controlled by Apple. To make matters even more complicated for Apple once EU regulators start looking into ApplePay, the NFC chip of iPhones is actually disabled during some point-of-sale transactions, thus leaving users with the option of using the payment service preferred by Apple.
Recent statements by executives at Apple Park are not making things easier on the company with regard to anti-competitive behavior. After the Apple Card was rolled out with the underwriting of investment banking giant Goldman Sachs, Apple made it clear that skyrocketing growth was on the horizon, and that this method of payment could soon overtake the market share held by PayPal.
Even though the EU is already looking into claims made by music streaming service Spotify against Apple, this is hardly the only technology giant being investigated for potential antitrust activity. Facebook and Google are also being looked into by EU regulators with regard to their offerings in the bloc, particularly the former with its intentions of providing a digital currency system that will enable payment transactions and money transfer services to users of Instagram, Facebook, and WhatsApp.
PayPal’s international money transfer service Xoom has this week made the announcement that, for the first time, their customers will be able to make money transfers to recipients in the United States. These P2P mobile payments will occur in a matter of minutes thanks to strategic alliances set up with Walmart and money transfer company Ria.
This has the potential to benefit more than 44 million foreign-born men and women who are living in the U.S. and regularly send money to friends and family back in their native countries. The partnership with Walmart allows Americans to take advantage of Xoom to send money to one of almost 5,000 locations all over the country for almost immediate cash pickup.
In a statement earlier this week, Vice President and General Manager of Xoom Julian King said, “Many of our customers in the U.S. already send money to loved ones in the country, and they usually prefer that the money is available right away.” He went on to say, “This rollout reinforces our commitment to make money transfers fast, easy and affordable for everyone, whether they are at home or on the go.”
In addition to King’s statement, CEO of Euronet’s Money Transfer Segment Juan Bianchi said, “At Ria, we are delighted to further consolidate our relationship with Xoom and Walmart. Our continued partnership is a fine example of how Ria’s technology can serve as an enabler between platforms, offering consumers and partners an added layer of security and compliance screening, in turn facilitating value creation within the Fintech ecosystem.”
All of this comes shortly after Xoom expanded into the United Kingdom and European markets earlier in July with remittances being paid out to individuals living in 130 countries such as India, China, Nigeria, and the Philippines. Xoom also made the announcement in October that individuals in the United States, Canada, the United Kingdom, and 31 other European markets are now able to directly send P2P payments to South Korean bank accounts. In only a matter of minutes, money can be sent from the app and received by Woori Bank, Shinhan Bank and Kookmin Bank.
Xoom has set themselves up as a pioneer in digital remittances by offering their customers fast and secure ways to send money and pay bills for friends and family living in over 160 countries worldwide. For many of these people all over the world, these remittances serve as something of a lifeline and help them to pay their day-to-day expenses such as medical bills, utility bills, and education costs. In the more traditional ways of old, the cash-based system of sending money to other countries has been full of costly fees, paperwork, and a load of uncertainty as to whether the money will arrive, or if the money will arrive in time for when it’s needed. PayPal and Xoom have been helping to improve and expand the finances of millions worldwide by providing them with speedy, secure payment options when sending money or making mobile payments across borders, only with none of the aforementioned drawbacks.
According to recent data released by Adobe Analytics, American shoppers will be going online to spread the holiday cheer among retailers in 2019. The Adobe study was published a few weeks ahead of Black Friday and Cyber Monday, two of the most active and lucrative shopping events in the United States. As has been the case in recent years, e-commerce activity will once again expand this holiday season, and even brick-and-mortar chains will be processing more digital payments than they did in previous years.
Retailers in the U.S. got an early start on their holiday offerings because the season will be a few days shorter in 2019. Once the e-commerce extravaganza known as Cyber Monday wraps up, shoppers will only have 22 days to complete their lists before Christmas. As for digital payments, some shoppers will likely be eager to try out new methods such as the Apple Card on their iPhones. One trend that analysts believe will rise sharply this holiday season is the “buy online to pick up in-store” (BOPIS) method, which is attractive to retailers because they can launch strategic marketing displays near pick-up counters.
Black Friday was displaced by Cyber Monday as the busiest online shopping event of 2018, and this will probably happen again this year. All the economic elements seem to be in place for a busy holiday shopping season: the economy continues to show signs of stability thanks to low unemployment, and consumer confidence remains positive despite a few concerns related to delinquency in subprime auto loan payments. Reaching the projected $126 billion sales target should not be a problem unless political uncertainty in the White House reaches an overly critical point.
For brick-and-mortar retailers, even those that operate a single location, being able to offer a diversity of payment options will be crucial to their success this holiday season. Some financial institutions such as Ohio’s KeyBank are offering cashback rewards to shoppers who make online purchases, and this is a smart move to entice individuals concerned about the trade war between the United States and China, which has resulted in items such as toys and holiday decorations being priced higher this year.
With 2020 looking to be the year that all the next generation games consoles will begin to hit the market, it won’t come as a surprise to learn that many eager consumers are starting to put money aside. For many, a lack of immediately available funds will direct attention to credit, but this past week, Citizens Bank has released details of a brand-new funding option for consumers ready to buy new Microsoft products.
Xbox All Access Program
Citizens Bank and Microsoft have joined forces to provide financing for the Xbox All Access program, offering consumers the choice of Xbox One X, Xbox One S, or the Xbox One S All-Digital Edition console bundles paired with a 24 month subscription of Xbox Game Pass Ultimate. This gives customers access to more than 100 games and online multiplayer via Xbox Live Gold. In addition, Xbox Game Pass Ultimate features multiple new Xbox exclusives, with new content added constantly, along with reliable and fast online multiplayer gaming. This will be predominantly available via Amazon, and will have a complete point-of-sale experience as well as 0% APR financing.
For the time being, the program is limited to just the current generation of Xbox consoles. Consumers who do pick up a current-generation Xbox through the Xbox All Access Program, however, will be eligible for an upgrade once what is currently only known as Project Scarlett launches, presumably next year.
Citizens Bank president of consumer deposits and lending Brendan Coughlin, said about the integrated payment solution, “Consumers want affordable ways to make purchases without taking on additional credit card debt. Xbox All Access bundles hardware, services and software with affordable and predictable financing delivered through Amazon’s online check out process. Xbox All Access represents the first time a lender, manufacturer and retailer have come together to offer a seamless way for consumers to buy, and we believe that it will be the model for how purchases are made and financed in the future.”
Looking Toward the Future
While it may not seem right now that this type of payment solution will send Xbox sales soaring, it’s worth remembering that Microsoft have very definitively lost this generation of the console wars, so this could be a cunning plan for the next generation. By offering potential future customers an easy way to pick up a console now while holding their place in line for the next console, Microsoft seems to be hoping to snatch away a few Sony supporters ahead of the game. Also, with each new console generation, or any new generation of any technology, supply issues tend to be a bit of an issue in the early days. This has by no means been confirmed by Microsoft, but perhaps those who buy under the Xbox All Access program will have priority access to Project Scarlett when it releases.
Early in 2019, Microsoft announced it was ending its mobile payments solution Microsoft Wallet. Support for the mobile payments app ended in February 2019 less than a year after Microsoft announced it integrated Microsoft Pay with Masterpass which allowed users to use the Edge browser to make online purchases with retailers who accepted Masterpass. The decision was inevitable since Microsoft Pay had a low user rate and the company discontinued support for its Windows 10 Mobile operating system which had just 2.4% of the market share of US mobile operating systems.
Until Ant Financial, the Alibaba affiliate that runs Alipay’s platform, made the following announcement earlier this month, users of the Alipay platform were required to have a Chinese bank account. Until now, that is, with Alipay announcing a program called “Tour Pass” through which the company will introduce a version of the Alipay app that will launch and feature full support for international debit and credit cards. Once users have download the Alipay app onto their iOS or Android device, they will be able to use their phone number to set themselves up for the international version of the app.
This has the potential to benefit more than 44 million foreign-born men and women who are living in the U.S. and regularly send money to friends and family back in their native countries. The partnership with Walmart allows Americans to take advantage of Xoom to send money to one of almost 5,000 locations all over the country for almost immediate cash pickup.
