Android Pay integrates other wallet partners (GOOG, GOOGL)

Teased at Money20/20 last fall, this would allow Android Pay users to add their PayPal cards to the mobile wallet, and as part of PayPal's relationship with Discover, the credit card network will generate virtual account numbers to push in-store payments through. Visa Checkout users will have the option to make payments through the credit card networks payment option by leveraging Android Pay's secure service for in-store payments.

Android Pay could boost adoption and usage of its technology by allowing users to use their preferred payment option within the mobile wallet. This will help attract users at a time where the mobile wallet industry is quite fragmented. Tech companies, banks, and even retailers have all released their own wallets in the last few years, which has left consumers with a plethora of options. In turn, this has left the industry quite fragmented, with no clear leader in the space.

To counter this, we've seen several integration partnerships like the ones rumored to be hitting Android Pay. That could help adoption, by giving more users access to more wallets that are accepted at a larger number of locations.

After a one-store pilot last fall, quick-service burger chain Shake Shack has launched its mobile order-ahead app, called Shack App, live for iOS customers nationwide, according to a company press release. In order to promote the app, users that download the app through will get a free burger. The news indicates that Shake Shack’s pilot was a success — something that’s unsurprising, considering that mobile order-ahead’s popularity is rising, and is expected to comprise 4% of QSR sales this year.

Offering the promotion could bring the app to more users — a similar undertaking from Chick-fil-A saw 1 million downloads in just three days. And getting users onto the app, and using mobile order-ahead, ultimately benefits Shake Shack, because it helps increase efficiency and average order-value, which in turn might substantially increase sales.

Retailers like Starbucks and Dunkin' Donuts are winning over consumers with their mobile wallets — apps developed by stores to make it easier for their customers to pay, and to deliver valuable perks.

And these retailer wallets are leading the overall mobile wallets industry, thanks to their ability to rapidly push out innovative features like rewards programs, coupons, mobile order-ahead, and custom marketing.

This may be surprising considering that retailer mobile wallets can be used only at a specific retailer’s locations; in contrast, popular universal mobile wallets like Apple Pay and Samsung Pay can be used at multiple retailers, as long as users are using the necessary smartphones.

Ayoub Aouad, research analyst for BI Intelligence, Business Insider's premium research service, has compiled a detailed report on retailer mobile wallets that assesses what makes them so successful and which retailers can most effectively leverage the technology to push sales, traffic, and average ticket size. The report also outlines what makes these mobile wallets attractive, and discusses some of the advancements being made in the payments industry that will affect mobile wallets' growth rate.

Here are some key takeaways from the report:

Retailers with large addressable user bases who are loyal, repeat visitors, will see their mobile wallets continue to be popular with consumers, especially as there continues to be slow merchant adoption of near-field communication (NFC) technology as well as weak offerings by universal mobile wallets like Apple Pay and Samsung Pay.

Loyalty programs will be a significant driver in retailer mobile wallet adoption. Companies like Starbucks and Dunkin' Donuts have been able to leverage their loyalty programs to acquire mobile wallet users, which, in turn, has driven store traffic and conversion rates.

By leveraging these programs, sales are expected to grow at a five-year compound annual growth rate of 68%.

However, adoption will begin to decelerate as a result of increased competition by 2020. As universal mobile wallet players begin to add effective loyalty programs and coupons to their offerings, adoption for retailer-based mobile wallets is likely to slow down because these offerings are their main marketing points.

Explains what hurdles universal mobile wallets have faced.
Details what features retailers have adopted into their mobile wallets that have been successful

Analyzes the use cases of retailers that have successfully leveraged their mobile wallet offerings to push growth.
Identifies how universal mobile wallets will eventually slow growth for retailer-based mobile wallets.

Interested in getting the full report? Here are two ways to access it:

Android Pay integrates other wallet partners (GOOG, GOOGL)

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