“Given the relatively low adoption by retailers of NFC technology today, and the relatively small percentage of the iPhone base which even has a compatible device, the [Apple Pay] service was always going to start quietly, beyond some excited day one experimentation,” Jan Dawson writes for Tech.pinions.
“Taking a step back from the US launch (which is, after all, what we saw this week) to a global scale the platform hasn’t even launched yet, so even the many new iPhone 6 and 6 Plus owners around the world can’t use the technology and many won’t be able to do so for some considerable time,” Dawson writes. “As an in-store purchasing experience, Apple Pay will remain niche both on a global scale and in the specific countries where it launches for the foreseeable future. But the launch went at least as well as could be expected, with many users and reviewers (myself included) finding the technology works pretty much flawlessly in stores.”
“Of course, today’s iteration of Apple Pay is just the beginning. While I’ve focused on the in-store version of the technology, the in-app version has mostly got off to a good start,” Dawson writes. “But there’s obviously a future beyond even these two implementations of Apple Pay and Apple already has the infrastructure in place to do much more.”
Read more in the full article here.
Related articles:
List of banks slated to support Apple Pay soon – October 23, 2014
Cashiers don’t understand Apple Pay and it’s totally adorable – October 23, 2014
American Express and Visa love Apple Pay – October 23, 2014
Apple Pay: Yet another game-changing revolution from Apple as the digital wallet pays up – October 23, 2014
Shopping with Apple Pay: Convenient, problem-free and even fun – October 21, 2014
McDonald’s: Decision to support Apple Pay was easy – October 20, 2014
Apple Pay launches today and retail will never be the same – October 20, 2014
Here in Canada, where most of us have NFC built into chips in our credit and debit cards, the use of tap-and-pay terminals is commonplace. I use my debit card every day and currently, this month, have only need ‘hard cash’ once or twice. In fact, this month I have only taken $100 in cash out of the bank. I’ve purchased everything else with debit. We are waiting for Apple Pay here because we WILL use it.
Since so many people outside the US have tap and pay with a card, and the pin number is stored on the chip on the card, not on a server (better security, this is why Target was hacked), I wonder if ApplePay will be as big a deal in other countries as it will be in the US.
Yes, it will make a difference. Although we already have tap to pay capable NFC credit and debit cards now, what happens if your wallet is stolen, the first thing they’ll likely try to do is tap to pay a bunch of stuff on your card since tap to pay doesn’t require pin entry, it simply needs to be below a certain value per transaction. With Apple Pay you’d be protected from that since they don’t have your fingers, (if they do I think you’ve got bigger problems to worry about)
the chips in a card are not secure..
http://www.proxclone.com/Long_Range_Cloner.html
one example. (search online, there are TONS of links like this)
One reason they really haven’t caught on, or have not been tried much in the states. couple hundred bucks, build something like this in a backpack and you can get CC #’s galore.
Thats why some cards ship with slip cases to prevent the RFID chip from being read.
Went to Subway and tried to use it, the cashier gave me a barcode to scan? Don’t think subways quite ready yet
We also have to worry about the 2015 introduction of an Apple Pay competitor that forced Rite Aid drug stores to deliberately turn OFF Apple Pay compatibility yesterday.
Merchant Consumer Exchange forces all members to disable Apple Pay support from their NFC terminals. http://www.tuaw.com/2014/10/23/report-rite-aid-disables-apple-pay-support/?ncid=rss_truncated
A payment service demanding that its members not do business with other services probably isn’t even legal. Turning off NFC payments by these “top tier” retailers will be a disaster for them, and it flies in the face of the demands by major banks and consumers for greater security. These cut rate, third rate retailers will find out soon enough that their stores are being avoided like the plague.
Just think for a minute what happens to Rite-Aid’s business when it turns off NFC on its terminals at the behest of CMX. Walgreens will be accepting Apple Pay and other NFC payment methods. Customers with iPhones and NFC enabled Android phones, as well as chip enabled cards will avoid Rite-Aid and flock to Walgreens. Also, Rite-aid may find itself excluded from accepting certain cards due to banking concerns about security. It won’t take long for this new system from CMX to collapse. They aren’t just fighting Apple. They’re also taking on Google and the whole banking industry, trying to preserve old, insecure technology. The only attraction for merchants would have to be cheaper fees, but the loss of business due to incompatibility with the technology preferred by well heeled customers will quickly outweigh any savings.
The other attraction for the merchants is loyalty programs. That’s the other part of the doomed MCX. Eventually Apple will address loyalty programs. Personally I despise loyalty programs. There are too many of them. I especially hate the ones where you have to show a card to get a reasonable price. Ralphs Grocery Stores uses a loyalty card to sell you things at a normal price. If you don’t have the card, you get charged more than the stores without loyalty cards. It’s ludicrous. There’s no benefit to consumers, just irritation. Has anyone ever gotten a Best Buy reward that they actually wanted to use? They offer me deals on things when I don’t want to buy them. These stores cling to their outmoded marketing.
Wow.. MCX is going to piss off many people. Granted you can still use a normal card at these places.. but there are a lot of people that would want to also use Pay at these places as well.
Bestbuy
Walmart
Riteaid
Bed Bath & Beyond
Wendy’s
Sears
7-Eleven
GAP
Just those the article mentioned..
In the end I think MCX will see very little (if any) usage of their crap, and the places listed above will probably switch to another company that allows Pay at some point.
(If they are smart)
Most of these places I visit no more often than once a year, some never.
Pay is all about three things:
1. Customer Identify (Touch ID)
2. Customer Anonymity (tokenisation at the merchant)
3. Customer Ease of use (Pay with the two above)
The above three attributes will see the Customers DRIVE the adoption of Pay with ever increasing momentum, as follows:
1. Customers with older iPhones will purchase iPhone 6/6 Plus
2. Customers with other phones will purchase iPhone 6/6 Plus
3. Customers will PUSH Merchants to upgrade technology to accept Pay (either activating NFC or acquiring NFC)
4. Customers in Countries outside the US will clamour for Pay for the above attributes
No other company comes remotely close!!
Now, when this guy says “…Apple Pay will remain niche… for the foreseeable future” I gotta ask exactly how far into the future he can see. There’s a pretty big MegaMillions jackpot tonight and I could use some help to win it.
I think it’s Jay Leno who’s still waiting for the headline: Psychic Wins Lottery
Mr. Dawson has got myopic eyes…. He’s so near the trees that he can’t picture the vast forest engulfing him!
Seems like drivel extraordinaire.