Apriva, a provider of end-to-end wireless transactions, gateway services, and secure information solutions, has reported that the number of US merchants actively using its mobile payment acceptance software, which include its AprivaPay™ Plus and several white-labeled solutions delivered through various channel partners, has increased by over 300 percent over the past year. In addition, the company is reporting substantially higher adoption rates in several major metropolitan areas. Apriva’s mobile payment software allows merchants to accept credit- and debit-card payments on iOS and Android smartphones and tablets.
“The rapid escalation of mobile payment adoption in urban America is, quite frankly, astounding,” said Chris Spinella, chief executive officer for Apriva. “It seems that a combination of factors, including smartphone adoption rates, changing consumer demographics and behavior, and security, are aligning. Legions of smaller merchants, including many brick-and-mortar establishments, are recognizing that smart devices offer a reliable, affordable and safe method to accept payment. We certainly see this trend continuing well through the holiday shopping season and into 2014.”
According to Apriva’s figures, merchants actively using its payment acceptance applications in six major American cities skyrocketed over the past 12 months. In the period from October 1, 2012 through September 30, 2013, merchant activations of Apriva’s mobile payment software rose in the following markets:
New York 720%
Average month-to-month increases ranged from 80 percent to over 500 percent. Apriva’s figures measure downloads in the city proper. Suburban download statistics were not factored into these percentages.
According to Nationwide Payment Solutions, a merchant services provider based in Portland, Maine, merchants—and consumers—seem more comfortable making purchases with smartphones and tablets than in previous years.
“Our recent experiences tell us that consumers seem much less comfortable carrying cash today, particularly in high-traffic, urban areas,” said Jamie Nonni, chief executive officer of Nationwide. “Merchants—including smaller and even seasonal vendors—are now cognizant of this trend, and realize that it’s very simple and affordable to convert a mobile device into a mobile payment terminal. Using these devices is now perceived as a safer, more convenient, and much more acceptable alternative than accepting strictly bills and coins.”
“The rapid growth that Apriva is experiencing with its mobile payments application is not an aberration,” said James Brehm, senior strategist with Compass Intelligence, a market research firm based in San Antonio, Texas. “For years, we’ve been predicting that the explosion of smartphones will have a significant impact on a number of industries, retail being one. Once vendors and consumers become comfortable with the notion of using their phones to conduct payments and participate in location-based marketing programs, the dynamic forever changes.”