This item is compiled from reporting by PaymentsSource writers including John Adams, Kate Fitzgerald, David Heun and Michael Moeser. Click the links in each item to read more.
Apple pays the rent
Apple recently started airing a commercial that shows a landlord using Apple Pay Cash and iMessage to pry rent out of a tenant is meant to elicit a chuckle, but it also shows how P2P providers must aggressively communicate the capabilities of their apps.
The challenge with a P2P system that's built seamlessly into phones and messaging apps is reminding consumers that it's there to begin with. The eviction ad is part of an evolution toward broad financial services that's probably necessary for the P2P and social group payments market to remain relevant — particularly as the novelty of texting people money for drinks wears off.
In the Apple ad, the landlord and tenant communicate with each other in a combination of Apple Pay and the Messages app, with a subtle message of funds owed and a collection message.
Google Pay plays to the search giant's strengths
As always, Google's strength is search. This gives the company a unique edge as it expands its mobile wallet strategy to include multiple rival brands. This starts with PayPal, which Google Pay is including as a funding option, and is fueled by Google Pay's integration throughout the tech giant's ecosystem. By incorporating rival brands, Google can make its wallet app a de facto search tool for finding the right mobile wallet for any particular retailer, website or in-app purchase.
To further this plan, Google has shed its role as a gatekeeper. The original Google Wallet, which launched in 2011, failed to attract more than a single bank partner because of the stringent requirements Google had in place at the product's launch. It took a fundamental shift in technology to bring more issuers on board, but it also left Google with fractured ecosystem that it struggled to unify.
The next iteration, Android Pay, was a streamlined product designed to shed the complexity that Google Wallet built up over the years. Its branding echoed that of Apple, which is notoriously controlling of its ecosystem. Google Pay is less a response to Apple and more an embrace of open development and open banking.
With online payments providers Braintree and Stripe setting the stage for embedding one-click payments into e-commerce stream, it has become clear that Google needs to be a part of that market in all of the channels where Google's Chrome and Android ecosystems are active.