Gmail Aids $118.01 Billion in Mobile Payments by 2018?
With eMarketer predicting mobile payments will reach $8.95 billion in 2015, one of the two major players in the space expanded its email payment options. During "the coming weeks," Gmail users in the U.K. will be able to do the same thing their U.S. counterparts have been able to do since 2013—send and receive money in their Google Wallet accounts.
Although Google describes the option as a way for Gmail users to send and receive money from family and friends, the May 2013 announcement in the U.S. got picked up two days later by the E-commerce Times for an explanation about how marketers can benefit.
And even before Apple announced Apple Pay, which along with Google Wallet is considered mainly a near-field communication (NFC) option in-store, Movable Ink wrote a blog post in October 2014 titled "Apple Pay + Email: Reducing the Friction to Purchase."
These innovations are part of what makes eMarketer say point-of-sale mobile payments will reach nearly $120 billion by 2018, according to an October 2014 article.
"Many U.S. consumers remain hesitant about using mobile payments in the near-term," eMarketer writes. "But most also believe it's only a matter of time before paying by phone becomes commonplace."
In 2013, Google made the Gmail process sound simple.
"To send money in Gmail, hover over the attachment paperclip, click the $ icon to attach money to your message, enter the amount you wish to send, and press send," according to the 2013 blog post announcing the option.
And in Thursday's Google Commerce blog post, the company says it will take weeks to roll out the option vs. the months it took in the U.S.
"When you receive money for the first time, you'll need to claim it by setting up a Google Wallet Balance and linking your debit card or bank account," the 2015 post says. "After that, your money can be kept in your Wallet Balance for later sending, for spending on Google Play, or you can quickly transfer it to your bank account."
As of Friday afternoon, Google Play shows Google Wallet has 10 million downloads. However, according to a September 2014 article in the Guardian, that number may be closer to 20 million.
"The rollout of Apple Pay—and more importantly the installation of NFC-enabled terminals in stores across the U.S.—should mean greater uptake for Google Wallet," reads the Guardian article. "But although Google Wallet has a far larger installed base, Apple's iPhone sales suggest that it could quickly challenge Google Wallet in the U.S. for real-world transactions, and the company is also implementing payments for apps."
According to Business Insider, during the first 72 hours of Apple Pay's availability, there were 1 million credit card activations.
On Thursday, Chris Ciaccia of Nasdaq writes an article titled "Apple Pay Is Going to be a Monster For Apple."
"On Apple's earnings call earlier this week, CEO Tim Cook said that Apple Pay, available on the iPhone 6 and 6 Plus, now account for more than $2 out of every $3 spent using contactless payments across the three major credit card networks," Ciaccia says.
What changes will marketers make as a result?
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