Mobile & Online Payments

Mobile wallet wars: Apple Pay vs Samsung Pay vs Android Pay

Chris Skinner shares a CNN infographic about the differences between the many mobile wallet options on the market, including Apple Pay and Samsung Pay. Image: Bloomua, Shutterstock
Written by Chris Skinner

Chris Skinner shares a CNN infographic about the differences between the many mobile wallet options on the market, including Apple Pay and Samsung Pay.

I know I write about Apple Pay quite often, but was surprised to hear that one of my colleagues recently purchased an iMac in the Apple Store using his Apple Watch and Apple Pay. Yes, he’s an Apple guy, but really? A £1,000 purchase with a fingerprint? I thought, as do most, that you could only make small transactions using contactless payments. In the UK, it’s under £20 (£30 from 1 September), and in the US it’s under $25. But this is not the case at all.

Software is the key, not the device or payment instrument you’re using
Good friend of the Financial Services Club David Birch has written a whole blog update on the subject and notes that it’s the point-of-sale (POS) software that is key, not the device or payment instrument you’re using. The POS makes the difference between whether you’re limited to low-value or high-value payments.

The low-value limit is when there’s no verification involved or, rather, no Cardholder Verification Mechanism (CVM). This is not the case with Apple Pay, however, as Apple Pay is based on a biometric Touch ID. In this case, there’s an additional layer of consumer identification based on the device, and an additional recognition layer (in this case, your fingerprint). This method is therefore based on a Consumer Device Cardholder Verification Method (CDCVM) rather than no verification. This is the reason you can have high-value payments with CDCVM, but are limited to low-value when you lack this device authentication.

All of this comes into the open just as Samsung ramps up its entry into the wallet war market, and Samsung has one big advantage over Apple, according to Time Magazine:

In addition to near-field communication (NFC) connectivity, Samsung’s new devices employ a technology called ‘Magnetic Secure Transmission’, which allows its mobile payment system to be used on standard credit card machines. Apple Pay only uses NFC connectivity, which is far from ubiquitous in the checkout lane … All you have to do is swipe up on the screen, select a card, and input your PIN or fingerprint to authenticate. Then wave the phone over the credit card reader and be on your way.

This is not only incredibly friendly, but also capable of being used as a CDCVM checkout. Then there’s Android Pay, the Google upgrade to Google Wallet to compete with Apple and Samsung. Some claim Android Pay has advantages over Apple and Samsung by being integrated with loyalty programs such as MyCokeRewards; it’s contactless payment system doesn’t require a fingerprint or other authentication (although this defeats the high-value payment option); and Android phones are far more plentiful in choice, from the Samsung Galaxy S4 to the HTC One M7 to the LG G2 to the original Moto X and Nexus 5.

All in all, it’s getting really interesting, so thanks to CNN for the infographic below, which also includes PayPal and bitcoin, to see the range of options now available (click image to enlarge in a new window). It really is a mobile wallet world, at last.

CNN's infographic: What's the difference between Apple Pay and Samsung Pay?

Image: CNN

This article is reproduced with kind permission. Some minor changes have been made to reflect BankNXT style considerations. You can read the original article here. Main image: Bloomua, Shutterstock

About the author

Chris Skinner

Chris Skinner is an independent commentator on the financial markets through the Finanser, and chair of the European networking forum the Financial Services Club, which he founded in 2004. He is an author of numerous books covering everything from European regulations in banking through to the credit crisis, to the future of banking.

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