Digital wallet idea stalls

The dream of a wallet-free life in New Zealand is getting fuzzy and is in danger of turning into a nightmare.

Paying for things using your smartphone was supposed to be ubiquitous by now and, while some Kiwis do have access to that technology, most are still using a card when paying in a store or they find shops don’t accept mobile payments.

Smartphones are more powerful than ever. They’re not the problem. The issue is all about who makes money from each transaction paid for by a smartphone.

This means banks are pitted against tech companies such as Apple and Google, which have digital wallets.

This has resulted in court battles, frustrated customers and the stagnation of the mobile payment revolution.

Some progress has been made, but it’s all rather bitsy.

ANZ customers can use Apple Pay, BNZ customers can use Android Pay and ASB and Westpac have their own apps for Android phones. ANZ and ASB also have apps for Samsung’s wallet app.

It wasn’t supposed to be like this. The dream was to be able to use any phone with any bank.

But while banks tussle with tech companies, other options are emerging.

This is best represented in China, where apps such as WeChat and Alipay have quickly replaced cash as the preferred way to pay.

The apps, which can be used on any phone, can be used to send people money, pay bills, order food or pay for items in a shop. You don’t need a credit card or payment terminal.

This approach could be a way for banks to cut out smartphone manufacturers as these types of apps don’t need access to the chips that are used when using with a PayWave terminal.

However, you don’t need to be a bank to have an app like this. WeChat is a messaging app that evolved into an everything app, including providing full banking services.

PayPal is the app most similar to WeChat and Alipay, but it has limited capabilities. However, if it did emulate the two apps from China, then it could provide another option for consumers and pose a big threat to banks.

The dream was to be able to use any phone with any bank.