PayPal is still leading the way in the mobile wallet game according to a new survey from Chadwick Martin Bailey (CMB). Though Apple and Google’s Android Pay have been in the news this year, PayPal, which has paved the way, is still coming out on top.
Business Insider broke the study down, and reported that PayPal will continue to lead the virtual payment market for at least the year to come.
“PayPal came out ahead of other brands: 71 percent of likely mobile wallet adopters, or consumers who haven’t made an in-store mobile payment but plan to make one in the next six months, selected PayPal as their preferred provider.”
Apple, Amazon, and Google followed closely behind: A slight majority of this constituent said they’d use Apple, followed by 49 percent and 48 percent for Amazon and Google, respectively.
Microsoft settled near the bottom at 34 percent. The company hasn’t made many vigorous pushes into mobile payments, but recently filed for a money transmitter license in Idaho, and is working to acquire licenses in all 50 states.
Recently, PayPal angered many of its users this month with an updated terms of service agreement that allowed the company to robocall and robtext users for a variety of reasons, even to ask the user to take surveys. When asked about a way for customers to opt-out of these often annoying contacts, PayPal said not at this time, and instead gave instructions on how to close an account. Evidently, they are not too concerned about their place in the market.
According to Forbes, PayPal is in the center of two battles. One for control of every transaction on the planet, and the other for control of its own destiny. Part of this is also risk management and ease of use. For now, PayPal has also cornered the market on both counts.
In a recent blog article for the Wall Street Journal, PayPal’s Chief Risk Officer, Tomer Barel, talked about the company’s biggest risk concerns.
“PayPal is predominantly a payment service, and the key risk we face is that either party to the transaction does not fulfill its obligation. On the consumer side the most typical is a fraud situation, such as identity fraud. In other cases, they are who they claim to be but do not pay because the bank account is not operating, or they systematically file claims that they did not get merchandise when they did. On the other side, the seller does not fulfill his obligation, gets the money but does not ship the goods. We provide buyers full protection against fraud and merchants get significant protection. But another area is credit risk. PayPal extends loans to both consumers and merchants, predominantly but not only in the U.S.”
Do you think PayPal will continue to be in top in the mobile wallet market?
[Photo courtesy of PayPal]