This week, Amazon revealed that General Electric, Brother (a printer brand), and glucose monitor Gmate Smart are the latest to use the e-tailer’s 3-month-old Dash program. Dash allows appliances and gadgets to be connected to Amazon; paper, toner, laundry detergent and other supplies can be ordered automatically through Amazon when they are detected as running low (through what GE calls “smart dispense” technology). It looks as if the future of commerce – or at least Amazon – is to make shopping frictionless as possible. And other retailers with e-commerce and retailer presences are delivering simplicity in providing a mobile experience faster and easier than taking out the wallet.
“To simplify mobile payments, we need one dominant solution. One that disrupts rather than just extends the way we pay today. One that eliminates friction for consumer and merchant alike and delivers benefits to both,” says Caetan Vaz, Director of SapientNitro’s Toronto division in L2’s latest study on mobile payment innovation.
With more than 600 million credit cards on file, Apple Pay was expected to lead the charge in frictionless payments. However, it is facing adoption barriers. Only 23% of Big Box brands allow customers to pay with Apple Pay, and Best Buy, Staples, Whole Foods, and Target are the only brands that allow payment with Touch ID. As of now Samsung Pay, Android Pay, and PayPal are viable competitors for Apple Pay. Android Pay has widespread adoption among certain Big Box subcategories: All Office Supplies retailers, two-thirds of Pharmacy and Toys/Baby brands and half of Consumer Electronics and Pet Supplies stores accept Android Pay. Though adoption is low across all of Big Box (5%), its ability to integrate loyalty programs could be an advantage. Meanwhile, Samsung Pay incorporates technology that works with all registers. Even though Samsung Pay does not sync with loyalty programs, 50 retailers have adopted the system.
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