e-Commerce Retailers: How Apple Pay & Android Pay Could Boost Your Conversion Rates This Christmas

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Posted by Johan van der Steen on 18 Oct, 2017

Earlier this year, we implemented Apple Pay into one of our client’s apps. It has been a great success as we are currently experiencing a growth of Apple Pay transactions by 50% on a month by month basis. Apple Pay adoption and Apple Pay users generate almost 5% more revenue than the average of other customers using different payment types.

As we enter the Christmas sales period, more businesses should be looking to implement a “native payment system” (called OEM payment in the industry). Put simply, Apple Pay and Android Pay are a ‘must have’ for online and m-commerce businesses this year. In the run-up to Christmas 2016, UK retail e-commerce sales reached £17 billion, accounting for more than 20% of all holiday season retail sale.

For Christmas 2017, the Smartphone will be at the centre of shopping habits. By 2020, eMarketer predicts that Smartphones will account for 52% of all m-commerce sales. What’s more, native payment systems will soon become the norm. It’s not about ‘should we’ implement OEM (original equipment manufacturer) Pay, but rather ‘when should we’.

According to Fintech analysts Juniper Research, the number of consumers using OEM Pay will exceed 150 million by the end of this year.

The research predicts that sign-up for Apple’s digital wallet will double in 2017 to 86 million users globally. Juniper further forecasts that by 2021 the digital wallet services of Apple Pay, Samsung Pay and Android Pay will have a combined user base of more than 500 million.

In the UK, big brands such as M&S, Waitrose, Zara and Top Shop have already integrated OEM Payment solutions.

As retailers head into their busiest time of the year, can you afford not to have a native payment system integrated to your website?


Boost Christmas Spend With OEM Pay

Implement Apple Pay and/or Android Pay ahead of the big Christmas push. Retailers are already getting their Christmas offers ready. Make sure you promote your native payment system and use its accessibility as a differentiator between you and your competitors.

Ahead of the holidays, use your native payment system as a great Black Friday / Cyber Monday communications tool. With time limited and stock limited offers, those consumers buying via OEM Pay are more likely to get a good deal because they will snap up the deals faster. After all, they don’t need to waste time entering their personal details, card number etc. It is a simple, one-click purchase. In this instance, Apple Pay and Android Pay can be a real game changer.

What’s more, Apple users (both via iPhone and PCs) are more affluent than the average consumer, which means that by offering Apple Pay you are also targeting a wealthier consumer.


Implement OEM Pay And Reap The Rewards

There are many reasons to implement an OEM Pay solution to your online checkout, not least of all because this is the biggest payment revolution of this generation. Soon, most consumers will carry a native payment system on their Smartphone or tablet.

Here are the 3 biggest reasons why you should implement an OEM Pay solution:

Increased Conversion Rate

Make it easy for people to buy and they will. A native payment solution can increase conversion rates by removing the friction of online purchasing. If your consumer no longer has to enter their basic information, card details, delivery address, etc, then new customers will come and existing customers will be more inclined to repeat purchase. With Apple Pay we have found that there is very little basket abandonment. Once they are at the point of conversion almost all consumers will purchase.

No additional cost

The general rule is that no additional fees are required for OEM payment solutions. What’s more, as mentioned above, a native payment system delivers a better conversion rate so from a purely business perspective the margins are better.

Leverage on New Behaviours

Today’s consumer leads a hectic life and wants to shop as quickly as possible, with maximum ease. The ability to action a purchase quickly and securely helps online retailers to maximise on impulse buys. Today’s consumer will browse while on the train to work, waiting in line, even while they are on the toilet! If you can facilitate an online checkout in less than a minute then that’s a very powerful resource and one that will lead to increased revenue. What’s more, Apple Pay is also available on Safari on Mac and iOS, which means retailers can provide a fully integrated multichannel experience, offering a consistent user experience from mobile to tablet and laptop.


What To Consider When Implementing Apple Pay or Android Pay

Integrating Apple Pay or Android Pay to your website and/or app can seem like a daunting task, but it isn’t. We’ve helped online retailers maximise on their profits through Apple Pay and Android Pay.

Here are our top three tips for getting it right:

PGP Integration

Integrate your OEM Pay with your PGP (payment gateway processor) and make sure you test this before going live. Apple Pay is not available in all countries yet, so make sure to also offer an alternative payment solution.

Communicate Early

Don’t wait until the checkout to let people know they can pay using Apple Pay or Android Pay. Make sure you flag this early in the buyer journey. Really use it as an incentive for people to shop with you.

Validate All Information

Make sure all the information you hold on your consumer is up-to-date. There is no point offering a one-click purchase if the package ends up being delivered to the wrong address. Double-check elements such as postcode validation, and offer your consumers the chance to add in special instructions, such as ‘leave package with neighbour’.


We’ve worked with a number of clients on OEM Pay integrations and the feedback we have received is that it is the ultimate ‘win-win’. It’s good for the consumer, good for your business and good for your payment processors too.

If you want to offer a truly customer-centric shopping experience this Christmas then you need to offer the checkout experience your customers are asking for, and that is increasingly becoming an OEM Pay channel. Adopt now and enjoy a prosperous festive season.


Discover how Future Platforms can help integrate an OEM Pay solution to your app. Contact us today to find out more.

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