The Prospects for Android Pay in Asia Are Mixed

The Prospects for Android Pay in Asia Are Mixed

This IDC Insight covers the launch of Google's Android Pay payment service at its flagship Google I/O developer event. The new service is focused on the United States market at launch and has several compelling features available immediately at launch. These include support for credit, debit, and even loyalty and gift cards. Beyond this, Android Pay will support purchases of digital goods and services like in-app purchases, thereby extending payments to the digital world as well. Android Pay has also announced a significant number of merchant and developer backing at launch. This Insight then turns focus to the prospects for Android Pay in Asia and analyzes whether it will make a big impact.

Please Note: Extended description available upon request.

IDC Opinion
In This Insight
situation overview
What Is Android Pay?
Can Android Pay Be a Success in Asia?
The Universe of Debit, Credit, and Other Cards in Asia Is Small
Android Pay Will Not Adequately Solve Google Play's Monetization Issues
The Addressable Market for Android Pay Is Not as Large as Many Assume
Android Devices with NFC in Emerging Asia Is Quite Low
Merchant Support Is Not Assured Due to Android's Fragmentation in Asia
Future Outlook
Google Should Focus Android Pay on Mature Asian Markets
Google Must Deploy a Stored Value Wallet Option in Asia
Android Pay Needs Support from Key OEMs and Banking Partners in Asia
Asia Merchants Should Re-Evaluate Their Investments in NFC
Figure: Asia/Pacific NFC Penetration for Smart Devices, 2015
Figure: Installed Base of Smartphones with NFC and Android 4.4+, 4Q13–1Q15

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