Published By : 22 Jun 2016 | Published By : QYRESEARCH
Better late than never. Microsoft Corp announced on Tuesday that smartphone users with the Microsoft Wallet app can finally use their phones to make payments at brick and mortar retail stores by simply tapping the handset at checkout counters.
Initially available in the US with the Lumia 950, 950 XL, and 650 Microsoft devices at over a million retail outlets in the country, the app will be made available through the Windows Insider Program. Consumers will be able to preview new features and even store membership and reward points, which can be viewed or scanned from their Windows phones.
Microsoft has so far been unable to gain any traction in terms of mobile payments. It is now the latest company to bring into effect the contactless payment service via a smartphone. Apple has been in the game since the latter half of 2014 and Samsung released its mobile payment app late last year. The company on Tuesday announced the expansion of its service in Singapore, Spain, and Australia.
Microsoft’s Benefits from Recent Payment Capability
An analyst has stated that introducing mobile payment features have the ability to profit device manufacturers by ensuring a certain level of customer loyalty. Taking the case of Microsoft, the introduction of the Microsoft Wallet app could increase the attractiveness of the Windows platform to an increasing number of app developers.
However, some say that this feature is unlikely to change its stance in the current market. A recent survey has shown that a meagre percentage of smartphone users feel that features of mobile payments are vital in their decision to purchase a mobile device. Considering the current position of Microsoft in the smartphone market, it seems highly unlikely that introducing a mobile payment capability will result in an increased market share or a surge in sales.
The LinkedIn Connection
Taking into account Microsoft’s recent acquisition of LinkedIn Corp, the company does have the potential to use this new capability to expand its business into mobile person to person payments, among other things. By retaining its payment credentials in the cloud there are a number of options for the company in terms of new services and revenue streams.