8 of Microsoft's Mobile Wallet Moves

June 22, 2016 8:40 AM

A visitor tries out Microsoft Corp.'s Windows 10 operating system on a tablet device during a launch event in Tokyo, Japan, on Wednesday, July 29, 2015. The release of Microsoft's new Windows 10 operating system -- an event that in years past sparked a surge of computer buying -- will do little to ease the four-year sales slump that's been dogging the PC industry. Photographer: Kiyoshi Ota/Bloomberg

Kiyoshi Ota/Bloomberg

Microsoft is in the process of rolling out a mobile wallet for its small share of the smartphone market. But the company has been steadily developing this technology across much bigger platforms.

The Microsoft Corp. Lumia 550 smartphone is displayed during the Windows 10 Devices event in New York, U.S., on Tuesday, Oct. 6, 2015. Microsoft Corp. introduced its first-ever laptop, three Lumia phones and a Surface Pro 4 tablet, the first indication of the company's revamped hardware strategy three months after saying it would scale back plans to make its own smartphones. Photographer: John Taggart/Bloomberg

John Taggart/Bloomberg

Microsoft Wallet

The current version of Microsoft Wallet seems to imitate Apple Pay and Android Pay. But the company has hinted that its other platforms including Xbox, Office and Windows are connected to its plan for payments.

Male hand smartphone wallet payment shop

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NFC Beginnings

Microsoft first developed plans for Near Field Communication-based mobile payments with the 2012 launch of its Windows Phone 8 platform. In doing so, it beat Apple Pay to market by about two years.

USA Map on Digital Screen and Smart Phone Pattern

Going National

Microsoft began applying for money transmitter licenses in all 50 U.S. states back in February of 2015. The move was seen as possible groundwork for a Windows 10 payment platform.

The silhouette of Panos Panay, corporate vice president of Microsoft Corp. Surface, is seen as he unveils the new Microsoft Surface Book laptop during the Windows 10 Devices event in New York, U.S., on Tuesday, Oct. 6, 2015. Microsoft Corp. introduced its first-ever laptop, three Lumia phones and a Surface Pro 4 tablet, the first indication of the company's revamped hardware strategy three months after saying it would scale back plans to make its own smartphones. Photographer: John Taggart/Bloomberg *** Local Caption *** Panos Panay

John Taggart/Bloomberg

Built on Biometrics

Windows 10 has a built-in system for facial and fingerprint recognition. Called Windows Hello, the technology is seen as a building block for Microsoft's broader ambitions in payments.

The Microsoft Corp. Xbox One logo is seen on the company's video-game console during a launch event in Tokyo, Japan, on Wednesday, Sept. 3, 2014. The Xbox One video game console goes on sale in Japan on Sept. 4. Photographer: Yuriko Nakao/Bloomberg

Yuriko Nakao/Bloomberg

Playing for Keeps

Though Microsoft's share of the U.S. smartphone market is a mere 1.6%, it's one of the biggest names in home video gaming, with 48 million users signed up for its Xbox Live service. These users already have a taste of what it's like to work with mobile payments, since many of them buy Xbox cash on prepaid cards and scan them with the device's attached camera.

A customer tries out the Microsoft Corp. Band wearable device at the company's store in Sydney, Australia, on Thursday, Nov. 12, 2015. Microsoft opened its first flagship store outside of North America in the heart of Sydney's CBD today. Photographer: Brendon Thorne/Bloomberg

Brendon Thorne/Bloomberg

All in the Wrist

Microsoft is eager to build payments into its newer platforms. The Microsoft Band, a combination of a smartwatch and fitness tracker, even comes with a built-in Starbucks app and gift card to encourage users to think of it as a mobile wallet.

Sao Paulo, Brazil - February 04, 2015: Bitcoin symbol, studio shot with circuit board background.

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Going Digital

Microsoft is also open to working with unconventional currencies, as evidenced by its acceptance of Bitcoin on its Xbox platform through a 2014 partnership with BitPay.

Microsoft Corp. Xbox Design Lab controllers are displayed during the E3 Electronic Entertainment Expo in Los Angeles, California, U.S., on Wednesday, June 15, 2016. Microsoft Corp. introduced a new, smaller Xbox gaming console for sale in August and announced a powerhouse new device planned for the holiday season next year, ramping up its battle with Sony Corp. to win over hardcore gamers. Photographer: Patrick T. Fallon/Bloomberg

Patrick T. Fallon/Bloomberg

Merging Channels

Microsoft is blurring the lines between its hardware products. For example, many of the games playable on its Xbox consoles are also playable on Windows computers, but are sold separately for each system. Its newly announced Play Anywhere program lets customers buy once and play on any Microsoft device, thus making Microsoft's user base and their wallets cross-platform.