digital wallet (Photo : Twitter)
Three tech giants are taking big steps this year to replace the cash money and credit cards of traditional wallets, with "digital wallets" that include various smartphone payment options. Apple, Samsung, and Google are all preparing to unveil new e-payment systems this year.
Apple announced last week that it has added store-linked credit cards and rewards programs to its mobile payment system. Apple Pay was launched last autumn.
Meanwhile, Google is also preparing a similar e-commerce service. The Android Pay app allow millions more cellphones to run on its operating system, according to Valley News.
Samsung has also promised to launch a new electronic wallet system on its newest smartphones. More stores will accept it than Apple's and Google's pay systems.
Last week Apple vice president Jennifer Bailey stated to software developers that the company's goal is to replace traditional wallets with pay-by-phone versions. However, digital wallets are not an in-thing yet.
Around 16 million American shoppers used mobile phones to make $3.5 billion in store purchases during 2014. That included payments services such as Apple Pay and PayPal, for chain stores including Dunkin' Donuts and Starbucks.
The figure is a tiny piece of the $4.3 trillion in store purchases last year, according to AL. However, experts project that mobile payments will surge to $27.5 billion in 2016.
Some retail giants are preparing for more customers to use their Apple mobile phones or smart watches to make purchases. For example, 80 million members of Walgreens' Balance Rewards program will have the new option to use their loyalty points with Apple Pay.
J.C. Penny has a similar plan. Its credit card is the most popular type of in-store plastic used, and iPhone users will likely want to use J.C. Penny credit cards through digital wallets.
