A worker demonstrates Apple Pay inside a mobile kiosk sponsored by Visa and Wells Fargo to demonstrate the new Apple Pay mobile payment system on October 20, 2014 in San Francisco City. Justin Sullivan/Getty Images

The BI Intelligence Content Marketing Team covers news & research we think you would find valuable. This topic was originally highlighted and sent to subscribers of the E-Commerce Insider Newsletter.

Apple Pay has a comfortable lead in the mobile wallets market.

A new report from Piper Jaffray cited by Investors Business Daily reveals that retailers largely prefer Apple Pay over its major competitors Samsung Pay, Android Pay, and Google Wallet.

The report found that 44% of U.S. retailers either currently are using or have expressed interest in installing mobile wallet readers in their brick-and-mortar stores.

Furthermore, Piper Jaffray reported that 67% of U.S. retailers prefer to have Apple Pay readers in their stores, compared to just 18% apiece for Android Pay and Google Wallet. Only 8% of retailers prefer PayPal, while Samsung Pay came in last at 7%.

Apple Pay, which got a head start in the mobile wallet market and has a strong brand name behind it, continues to lead the pack and has helped increased in-store sales through mobile devices. The service has increased conversion rates and allowed customers to checkout through mobile retail apps, Quartz reported.

Several retailers have reported a boost in mobile commerce thanks to Apple Pay, notes Nancee Halpin, research associate for BI Intelligence, Business Insider's premium research service. Staples has reported that its checkout times are 35 seconds faster on its mobile app with Apple Pay than when manually entering card information.

Instacart customers can checkout 58% faster on its mobile app with Apple Pay, while JackThreads said that its customers who use Apple Pay are 92% more likely to complete a transaction than those who do not use it.

The benefits of installing Apple Pay and other mobile wallets are becoming increasingly clear. The convenience and speed of these services benefits all parties involved, and the increasing adoption of these mobile wallets is changing the way consumers pay for their goods. But what does the future of payments look like?

Evan Bakker and John Heggestuen, analysts at BI Intelligence, have compiled a detailed report on the payments ecosystem that drills into the industry to explain how a broad range of transactions are processed, including prepaid and store cards, as well as revealing which types of companies are in the best and worst position to capitalize on the latest industry trends.

Here are some key takeaways from the report:



2016 will be a watershed year for the payments industry. Payments companies are improving security, expanding their mobile offerings, and building commerce capabilities that will give consumers a more compelling reason to make purchases using digital devices.

Payments is an extremely complex industry. To understand the next big digital opportunity lies, it's critical to understand how the traditional credit- and debit-processing chain works and what roles acquirers, processors, issuing banks, card networks, independent sales organizations, gateways, and software and hardware providers play.

Alternative technologies could disrupt the processing ecosystem. Devices ranging from refrigerators to smartwatches now feature payment capabilities, which will spur changes in consumer payment behaviors. Likewise, blockchain technology, the protocol that underlies Bitcoin, could one day change how consumer card payments are verified.

In full, the report:



Uncovers the key themes and trends affecting the payments industry in 2016 and beyond.

Gives a detailed description of the stakeholders involved in a payment transaction, along with hardware and software providers.

Offers diagrams and infographics explaining how card transactions are processed and which players are involved in each step.

Provides charts on our latest forecasts, key company growth, survey results, and more.

Analyzes the alternative technologies, including blockchain, which could further disrupt the ecosystem.

To get your copy of this invaluable guide, choose one of these options:

START A MEMBERSHIP Subscribe to an ALL-ACCESS Membership with BI Intelligence and gain immediate access to this report AND over 100 other expertly researched deep-dive reports, subscriptions to all of our daily newsletters, and much more. >> Purchase the report and download it immediately from our research store. >> BUY THE REPORT

The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of the payments ecosystem.