Alipay, a third-party mobile and online payment platform developed by Alibaba (BABA), is teaming with First Data Corp. (FDC) tells that not only is our Cashless Consumption theme heating up in general, but the greater adoption of Cashless Consumption products and services outside the US likely means more international players than many a U.S. centric investor might consider. We also see signs of our Ultra Wealthy and Affordable Luxury themes at work as travelers from China to the U.S. looking to use mobile payment systems they use every day help “pull” them into the domestic market.
Alipay recently announced a partnership with America’s First Data Corp, in its latest effort s to expand its presence in overseas mobile payment market.The deal with the American payment processing services will allow 4 million merchants in the U.S. to accept Alipay, a boon for Alipay users shopping there.
“This will open up Alipay to where it’s truly ubiquitous across the United States and hopefully more countries later,” said Souheil Badran, president of Alipay’s North America operations. Alipay has been accepted by more than 100,000 retailers in more than 70 overseas markets, he added. According to Douglas Feagin, head of Ant Financial’s International Operations, the company has over 450 million registered users as of last October, one-tenth of whom were outside of China. If taking into account the 150 million users of Paytm, its strategic partner in India, Ant Financial has had nearly 200 million overseas users.
Source: Alipay teams up with First Data to increase US presence – TechNode
New technology adoption can be driven, primarily, by two forces – bubbling up based on consumer demand or pushed down due to a mandate from companies or the government. With contactless payments, we’ve seen consumer uptake grow as mobile payments, like Apple Pay, have come to smartphones and wearables. Now Mastercard (MA) and Visa (V) are mandating payment terminals to include contactless payments by 2020. This should deliver a pronounced step up in contactless payments, but it also means an upgrade wave coming to payment terminals from Verifone (PAY), First Data (FDC), Ingenico and others.
Apple Pay should get a major lift within the next five years from a pair of factors, according to new research, most notably contactless support demanded by credit card giants Visa and Mastercard.
By 2020, both companies will require payment terminals in many markets to offer the technology, Juniper Research noted. The lack of compatible sales terminals has been a consistent obstacle in U.S. Apple Pay adoption, such that some retailers —like Anthropologie —have promised support for years without delivering.
Growth may also be aided by shoppers wanting to avoid the slower speeds of chip card transactions, which are presently replacing magnetic swipes.
U.S. contactless payments at retail are forecast to rise from 2 percent this year to 34 percent by 2022, Juniper said. Globally, figures are predicted to rise from 15 percent to 53 percent, reflecting the technology’s greater popularity in countries like Poland, Japan, and the U.K.
Source: Apple Pay likely to get boost from Visa & Mastercard mandating contactless payment terminals