Amazon is out, at least temporarily, from the race for digital payment software. According to information from CNET, the retailer network should look for new ways to use the application with its services, before re-launching it.
“We’ve learned a lot from the introduction of Wallet and will look for ways to apply these lessons in the future as we continue to innovate for our consumers,” Tom Cook, an Amazon spokesman, said on Wednesday.
The online retail giant began reporting on the disruption of Amazon Wallet activities through emails sent to users on Tuesday (20). The app’s beta has been removed from app stores. This maneuver happens, according to the company, so that there is a better analysis of how to apply the knowledge in the sale of products and services in the sector of the financial industry.
Amazon, however, did not say what the expected return would be. Users will still be able to use any gifts and loyalty or membership cards in the app stores. The balances, however, will no longer be updated as of Wednesday, so consumers will need to control their own balance sheets.
Launched in late July last year, the Amazon Wallet allowed users to store and manage gifts, store and loyalty cards and online transactions. Unlike its competitors, in particular Apple Pay, its application did not allow the use of credit or debit cards.
The promise of turning smartphones into digital wallets has already been announced for years and since last year the industry has been making great headway to make it a broader reality. The market expectation is that mobile payments will account for $ 142 billion in transactions by 2019. By 2014, according to Forrester Research, it was more than $ 52 billion.
Google was one of the first companies to offer mobile payments, with the Wallet service, but it turned out to be not very popular with users. Now, the search giant intends to compete in this sector by buying the Softcard, which will allow Android smartphones to be turned into digital wallets.
PayPal has also been available for some time and was a major contributor to changing people’s behavior regarding the interaction between real and digital transactions. However, after the arrival of Apple Pay, the company felt pressured to maintain a competitive service in a mobile environment and joined with Samsung.
Already Apple has gained a lot of ground since September last year, when it linked Apple Pay to iPhones 6 and 6 Plus, with the fingerprint recognition security layer for confirmation of transactions. Less than 72 hours after the debut, one million credit cards were already using the service.
But as digital portfolios are still in their early stages of use, there are still problems to be solved, not only among financial institutions but also with consumers’ own experience. Once the Apple Pay was launched, for example, retailers and credit card companies argued over the responsibility for using mobile payments by consumers with disabilities.
Much still needs to happen and the digital wallets with mobile payments are in the midst of development.