Apple Pay launches today and retail will never be the same

“When you look at your smartphone, you probably don’t spend much time thinking about the poor calculator, day planner and digital camera it helped send to the dustbin of history. But starting today, that same phone is taking aim at another victim: your wallet and the credit cards you carry in it,” Mark Rogowsky reports for Forbes. “Both are on ‘deathwatch’ as Apple rolls out Apple Pay for the iPhone 6 and 6 Plus. While the impact of the new software will be limited at first, it will usher in a new era of convenience and security that will ultimately bring benefits to everyone — whether or not they are iPhone users. Here’s what you need to know.”

“Apple Pay is really two ways to pay rolled into one. The most visible of those will be using your iPhone to pay in retail stores, verifying your ID with the fingerprint sensor. That version of Apple Pay will replace the traditional credit-card swipe,” Rogowsky reports. “The other version is Apple Pay inside of apps. It’s currently iOS only (Macs need not apply) because it requires the TouchID [sic] sensor… Apps that don’t support Apple Pay but want your credit card and address info are going to quickly look archaic; don’t think merchants aren’t aware of this. Buying on your iPhone is about to get a lot easier, for better or for worse.”

“Besides Panera, is anyone going to accept Apple Pay?” Rogowsky asks rhetorically. “First, a clarification. There is no ‘accepting Apple Pay.’ You may have read an article or five suggesting that retailers don’t plan to support Apple Pay, implying there is some special thing they have to do to work with Apple. What a retailer needs is nothing more than a NFC-equipped point-of-sale terminal. Those aren’t everywhere yet. Apple says 220,000 merchants have them; First Data says that’s out of 8 million retail points of sale in the U.S. But if the NFC reader is ‘live’ it supports Apple Pay, whether or not the retailer has a deal with Apple Pay.”

“Apple Pay is,” Rogowsky writes, “a reminder of the company’s ability to lead the world in nearly impossible directions.”

Read more in the full article here.

35 Comments

  1. For Apple Pay to be a success it needs to be supported around the world not just in the US/Canada. iTunes Radio still hasn’t been released around the world so I’m not going to say Apple Pay is a success till I see it taken up world wide.

    1. It can easily be called a success with a release “limited” to just the US – it ain’t exactly a small or unimportant country.

      There’s plenty of time to role out Apple Pay worldwide after it succeeds in its country of origin.

      1. I think it depends on what parameter you use to decide the importance of a country in this context. Certainly when it comes to geographical size, population, hate, fear, paranoia and war mongering, the US is way up there.

        When it comes to other parameters like intelligence, peace loving, ethics, morality, it’s bottom of the barrel under the scrapes. For example seeing all countries as having unique values and importance lends itself to respect of any and all sovereign nation. One the other hand suggesting or indirectly calling a country unimportant lends itself to invasion, assassination and torture of its citizens with maybe some thermonuclear device searches tossed in for good measure thus attempting to become a threat to global security.

        I do know that ApplePay is poised to be a great worldwide service as long as the security is top notch.

    2. Getting the rest of the world doing Apple Pay will not be a problem. Visa, MasterCard and American Express are ubiquitous.

      As for iTunes Radio, you need the OK from every individual country and every individual group, backup musician, and record company in that country.

      It’s going to be a huge clusterfuck in every market Apple wishes to put iTunes Radio. World wide iTunes Radio will never happen. Ten to fifteen of the richest or most populous countries may be all the iTunes Radio that Apple will do.

    3. Totally incomparable. As the article says any outlet with NFC will support it. NFC is widespread in UK, Europe, Japan, Korea more so than in the States in fact. Radio on the other hand has to agree local rights to the music it offers and can’t be introduced without that agreement which is costly and time consuming. Unless retailers make a decision to directly ban the use of iPhones (not going to happen other than very short term if at all) being used to buy then there is no such barrier for Apple Pay.

      1. Well I live in London and the only use of NFC is the Oystercard (London travel card) NFC simply isn’t used at the till as chip and pin is widespread in the UK. So the chip and pin terminal would need upgrading to support NFC before Apple Pay would get a chance of being used, and that means the retailer would have to pay to upgrade their equipment and I just don’t see them taking the risk or expense of supporting something that would only be used by a small number of customers.

        This would also be mirrored around the world with any country that already uses chip and pin, Apple has an uphill battle to get its pay service adopted and at the moment I see Apple Pay as a niche service only.

        If i could use the NFC in my iPhone 6 as my Oyster card then at least NFC would be used as it is NFC is just wasted tech.

        Regarding iTunes Radio surly the might of Apple can compete with the other streaming services if Grooveshark et all can do it then Apple surly can. Unless they just don’t care enough to compete then iTunes Radio has already lost the battle.

        1. It took almost two years for Canada to roll out tap technology at almost every POS terminal. Now, pretty much every McDonald’s/Time Horton’s/Burger King/Grocery Store/Gas Station has Mastercard’s Paypass and Visa’s Paywave to pay. The amount is usually limited to $100 per transaction. It started out limited to $25, then $50.

          Note: This is in addition to Chip n’ pin, which is pretty much standard everywhere as well.

          The one sticking point is that not all merchants have “tap” available and there isn’t any form of authentication used. So, someone could rack up $100 charges. Credit card companies are usually pretty good at identifying fraud, though, and disabling your account.

          Then again, “swipe” wasn’t really safe either. Signatures are NEVER checked and I’m not sure I even have signed all my cards.

          Apple Pay makes every tap transaction secure. It will save the credit cards and banks a whole lot of money in fraud charges and the banks know this. That’s why they are willing to partner and give up a small amount of their profits. It’s not that they can’t roll out tap by themselves, it’s that Apple has biometric authentication of its users and can increase the service’s profitability.

          You can count on banks offering retailers lower rates to upgrade to ApplePay terminals. These terminals will also have chip n’ pin.

          I think you’ll see a MUCH faster rollout than we all think.

      2. Agreed here in Australia, NFC is used almost everywhere. I’ve gone weeks without swiping or inserting my credit card.

        ApplePay might help bring the U.S. up to speed, but here at least it’ll make little difference.

    4. As others have pointed out, the rest of the world will be easy cause it’s already being used in some form.

      The US has very little NFC usage. (Currently)

      iTunes radio.. yeah the others pointed out the real issue. (it’s not Apple)

    5. Has it been announced in Canada? Last I had heard it had not, though we do have many nfc terminals available. I have read that Canadian Banking rules (which are restrictive I hear) may make things difficult. Personally, I can’t wait! I’ve had my credit card stolen before, and even chip and pin isn’t that safe!

      1. Its purely my assumption that Apple Pay will be available in Canada at the same time as the US as iTunes Radio was. Im sure if its not available in Canada now it can’t be far behind as you say Canada has the NFC tech in place. I want Apple Pay to be a world wide success but unfortunately time will tell if it is or not.

  2. “It’s currently iOS only (Macs need not apply) because it requires the TouchID [sic] sensor…”

    So in other words, we might then keep an eye out for a new Mac keyboard which integrates a fingerprint sensor?

    -hh

      1. I was wondering the same thing – phone calls and texts are now coming in on my iMac … it would seem it’s possible to trigger a “Confirm your authorization from a connected TouchID device” type pop-up to authorize an iMac Safari online purchase.

        1. Actually, I was thinking of this in terms of how to get more fingerprint sensors out there, primarily for owners of iPhones & iPads of earlier generations that aren’t quite going to jump for a newer iOS device (or likely for an iWatch, either).

          Doing so can’t hurt broader Mac adoption, particularly as one more means of trying to catch up with the hardware that’s been available on PCs for some time now.

          Case in point: consider that normal Credit Cards are going to have to migrate from Magnetic Strip to Chip&Pin, and that there have been Windows laptops with built-in (Chip based ID card) readers for years now…that puts PCs in the lead here, even if these are more business-centric (employer ID card) based instead of credit card consumer based…just how is Apple going to counter?

          They need to at least “match” this with their fingerprint sensor…

          …although personally, I’ll also point out that their lack of a CAC card slot for my employer’s Chip-based ID badge is something that’s holding back being able to use Mac’s again at work).

    1. I think it more likely with the “hand-off” functionality between iOS and Yosemite, that if you need to use Apple Pay via your Mac, at some point it would just let you use the Touch ID on your phone….

  3. Not everyone owns a smartphone.
    Not everyone that owns a smartphone has an iPhone.

    Retail is never going to be the same?
    Not because of Apple but because security and regulation will force the change. We don’t even know how good Apple’s system is. All we have is their word on it.

  4. Isn’t it amazing how excited most of us here are about being able to spend our money more easily and quickly? (Myself included.)
    Now if Apple could just make it easier to save money…

    1. I went to Walgreen’s first because I knew it was going to work there. Then I ran to a local grocery store (Meijer in SE Michigan) that I know uses NFC payments at their terminals, and it worked there too!

      1. Just checked both receipts – both say that the purchase was made using an AMEX card with an account number that is all Xs then 4 digits at the end (standard credit card security). The 4 digits at the end, are not the same as on the card, but are the same on both receipts.

  5. So much for Apple Pay. Neither of my two Visa credit cards is available with Apple Pay yet, and those are from Fidelity and Amazon (Chase). Nor is my local bank’s Visa Debit card on board. Waste of time updating the software for Apple Pay.

    1. OH MY GOD!!! It’s been out for a few hours and your particular cards are not supported yet!!! Disaster!!! Well, that’s that, then. “So much for Apple Pay”.

  6. Target APP just updated – beside now allowing Pay, they also did a major overhaul of the app. I just noticed for the first time, I could search for, and found, my dog’s food I buy there … AND it also verified inventory availability, and location in the store … THEN offered “Pick Up” service at the store while paying with Pay. Looks like I don’t have to worry about not using Pay in Target! I’ll just buy everything through the app and pick it up at customer service.

  7. Installed 8.1 in a flash on my iPhone 6 Plus, picked up my Incipio Stowaway Advanced card holder case at the PO box, went to Whole Foods where I got 20% off bulk organic Popcorn with Apple Pay – BOOM! Like buttah. Then went to my Santa Cruz CA Target to get a small fan and at the checkout I discovered they don’t have NFC terminal here. 😣 So I had to open my new Incipio Stowaway card holder door on the back of my iPhone 6 Plus to take out my AMEX card and perform an old fashioned swipe on the obsolete checkout terminal. BOOM! Like buttah. 😜

    1. Awesome, so the next time Target gets hacked, they’ll have your AMEX number!

      You should have fired up the Target app, purchased whatever it was you were buying from the app, paid with Pay, and picked it up from customer service.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.