Tech industry rolls out new features to lure hesitant pay-by-phone users

The tech industry has been saying for years that smartphones would make traditional wallets obsolete. But most people still use cash or plastic when they shop in stores. That could change later this year when three leading tech companies are promising to give shoppers more reasons to use “digital wallets.” Apple said last week that it’s adding store-issued credit cards and store rewards programs to Apple Pay, the mobile payment service it launched last fall. Google is readying a similar service for millions more smartphones to run on its Android software. And Samsung promises that a service for its newest Galaxy smartphones will be accepted in more stores than both Apple Pay and Google’s Android Pay.

Our ultimate goal is to replace the wallet.

Apple vice president Jennifer Bailey told software developers last week

The new options follow years in which the industry has struggled to get digital wallets off the ground as major players failed to agree on technical standards, security measures and financial terms. Some big merchants have balked at services developed by Apple or Google, saying they’d rather build and control their own system. Some experts are hopeful the changes will draw more shoppers to use digital wallets. But there remain some big challenges. For instance, Walmart has declined to accept Apple Pay and is part of a consortium working on its own mobile payment system.