“Apple Pay might just be the one thing to bring mobile payments to mainstream adoption. Google Wallet failed to gain traction among consumers. The best efforts of Square and PayPal did not change the fact that mobile payments still trails credit card transactions,” Alcaraz Research writes for Seeking Alpha. “However, the devotion of the iLoyalists will likely help Apple Pay avoid the same $300-million flop of Google Wallet.”
“More retailers will likely join the Apple Pay bandwagon because Apple’s new phones are now compatible with Near Field Communication,” Alcaraz Research writes. “Another reason why Apple Pay will gain more third-party support is that retailers know very well that the iPhone crowd is full of affluent people.”
“Apple’s two major advantages over Google Wallet are better security/privacy features and a guaranteed bigger number of big-spending users. Brand loyalty among Apple iPhone devotees will deliver record sales for the iPhone 6. Consequently, Apple Pay is likely to gain more users than Google Wallet ever did,” Alcaraz Research writes. “Achieving critical mass of users is necessary to make Apple Pay a profitable venture. The more iPhone 6 units sold, the more people will be using Apple Pay. It is not far-fetched to estimate that Apple Pay will have around 20 million active U.S. users within 12 months.”
Read more in the full article here.
MacDailyNews Take: Apple Pay’s security is unmatched. Attention retailers: If you do not have Apple Pay, you do not have us as customers. We will go elsewhere.
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“Attention retailers: If you do not have Apple Pay, you do not have us as customers. We will go elsewhere.”
Not me, whilst I will likely prefer to use it, if I’m in a shop it’s because I want to buy that thing from that shop. I get your point though.
Certainly a brick and mortar could get away with not having it, but very likely it will have a profound impact on smaller online retailers where customers may be very understandably skittish about sharing their personal information which could very easily be hacked.
If you walk into a store and ask if they offer “Apple Pay”, you’re likely to get a blank stare. The merchants aren’t being required to do anything to take Apple Pay, other than to be set up for contactless (i.e. NFC) payments. Apple Pay uses an existing protocol, so all the work is done by Apple and the banks. The merchant just gets the money.
From http://www.apple.com/apple-pay/ :
“Apple Pay lets you use iPhone 6 or Apple Watch to pay in over 220,000 stores accepting contactless payments.” Accepting “contactless payments”. Not “accepting Apple Pay”. At the bottom of the page, it tells you to look for the standard “NFC payment” symbol we’ve seen at places like McDonalds for years.
So, what I’m getting at is this: Don’t ask the poor schmuck behind the counter whether their store takes “Apple Pay”. Ask if they take “contactless payments” or “NFC” or “that thing where you just wave your card in front of the swipe machine”. You’ll get better results.
——RM
I am going to ask just to see their facial expressions!
The government requirement to update payment systems by October 2015 is going to be a HUGE boost for Apple Pay.
Access and usability will be important for success. I have never successfully used passport. Admittedly I do not use Starbucks that often but tried to use it for my Virgin airlines flight and never worked out how to get it to work.
So we will have to see how this will work in action. I would love to get away from CC since they are so open to abuse. I may get an Apple Watch since it provides both exercise tracking and Apple Pay whilst I still have another year on my current phone purchase.
My dad used a credit card at a restaurant in a mall, the waiter had an accomplice run around and use it and charged up several thousand dollars in less than 1 hour. That’s just one example of what would NOT happen under Apple Pay.
Apple in making Apple Pay has single handed solved a major security problem with using credit cards.
Things like credit card fraud or skimming http://en.wikipedia.org/wiki/Credit_card_fraud
http://credit.about.com/od/privacyconcerns/a/credit-card-skimming.htm
have just been dealt with by using Apple Pay people can now have an easy and more importantly secure way to pay for goods or services.
Apple ‘Think Different” and make our world a better place can’t say that about Google, Scumsung and crapdroid can you.
I’m proud to be an Apple customer and not a Google product.
There are still avenues for fraud, just not the usual ones.
Such as?
A merchant could do many things.
Such as?
its called PAY
Or Apple Pay.
Ok correct me if I’m wrong here but isn’t ‘PAY’ the logo and ‘Apple Pay’ the service. So I think you are both right.
It may well be, but anyone using a keyboard that isn’t attached to an actual Mac computer isn’t going to be able to use the ‘Apple’ icon unless they can c’n’p it.
It would be nice if it was available via the iOS keyboard, save a lot of fannying around.
Unless it’s already hiding somewhere I haven’t found…
Logos are meant for typing they are a companies graphic representation thats all.
Google must know by now it’s ass has just been given back to them on a platter and a new era begun that doesn’t smile favorably down on them or their mediocre effarts.
Ye got that right, blood. I do anything I can to avoid all things google.
i did a double-take thinking you might have meant to type “efforts”. but then i realized intentional misspelling or not, “effarts” is much more appropriate. Google’s stinky effarts.
Exactly! 🙂 Mangling the English language to altered double effect is fun.
I never even heard of Google Wallet until this week. They certainly weren’t spending that $300 million on advertising.
Apple was already more successful with payments than google because people was already making more shopping transactions via iphone or ipad than people using google wallet. with apple pay it just going to get a lot better.
Also, even if google could came up first with this secure and private system before apple, it won’t be as successful as Apple Pay because android settlers are poor people and they don’t have any money to spend. Although it could be very successful if google came with welfare or salvation army coupons.
The keys are 1. trust 2. ease of use 3. Apple Pay everywhere.
So far, it appears 2 out of 3 are likely.
OpEx (Operational Expenses) might be higher than usual.
Apple pay is one reason I’m moving from a 4s. 128GBs is the other.
“Apple’s two major advantages over Google Wallet are better security/privacy features and a guaranteed bigger number of big-spending users.”
Here is another: Apple’s reputation as a consumer ally against piracy, theft, and unbridled harvesting of consumer data for advertisers. In sharp distinction to Google.
The proprietress of Sally’s News & Magazine Shack just shat herself.
The key to Apple Pay is Touch ID, imo. I’ve been saying for a long time that Touch ID is vital to the future of Apple. Those who couldn’t foresee its importance upon the iPhone 5s launch had cast it aside as a gimmick, and these are the same fools like Henry Blodget who overlook Apple Watch as a side show. They can’t see the forest for the trees. Apple always maximizes its investments.
You couldn’t be more wrong. I buy my coffee, newspaper, groceries and ride the buses and subway with my NFC card. Small businesses love it and thrive on it.
And my understanding is that Apple Pay will work at all of those businesses, without them having to do anything. Apple used an existing protocol. The Apple Pay page says the service will work anywhere you see the “NFC pay” logo (a hand holding a card up to a wi-fi symbol).
——RM
RIP plastic cards.
Authorize.net and Chase are rolling out Apple PAY for Online and Offline. ONLINE APPLE PAY is going to be huge, and the tokenized payments will break down a fear barrier to e-commerce on small business sites that offer Apple PAY.
“Attention retailers: If you do not have Apple Pay, you do not have us as customers. We will go elsewhere.”
Ummmm, no. It will be a convenience, but I will still shop at places that don’t take it.
We will go elsewhere sounds tough until the restaurant your wife/GF/significant other/partner wants to go to doesn’t do NFC. You will break out your plastic and comply or go home with a pissed off date.
“Brand loyalty among Apple iPhone devotees will deliver record sales for the iPhone 6. Consequently, Apple Pay is likely to gain more users than Google Wallet ever did”
Bullshit. Apple users are not all blind followers- excepting some here at MDN- and will likely approach Apple Pay with a cautious approach. When money is involved being a devotee or fan is not the big deal.
Not discounting Apple’s service, but I am not ready to jump in and attach my checking account or a credit card to a cellphone payment system. A third party account will be fine- just opened an American Express Serve account for that very reason- it can be controlled and limit my exposure and I can control how much money funds the account.
Apple Pay is going to be a huge target and Apple had better have it’s A game on or things could get very ugly.