Apple Pay is nirvana for (smart) retailers

11 years ago

“When executives at the chain restaurant Panera Bread started having secret talks with Apple in June, they immediately knew Apple Pay was a safe bet,” Jose Pagliery writes for CNNMoney. “It takes a huge target off the company’s back. Apple Pay’s security features mean that Panera Bread doesn’t collect credit card data from shoppers, so it has less to lose if it ever gets hacked.”

“Instead of handing shops your credit card, Apple Pay generates a one-time-use, unique code. It’s not worth stealing. ‘That’s nirvana for merchants,’ said Jason Oxman, who heads the Electronic Transaction Association trade group,” Pagliery writes. “Target already faces $148 million in costs related to its data breach last year. Home Depot is expected to pay out even more.”

“The only downside for retailers: They lose the ability to track shoppers the traditional way. Ever give up your zip code at checkout? Stores routinely pair that with your credit card number to figure out exactly who you are and where you live. ‘The data is valuable. That was their only point of collection, their only anchor,’ said Cherian Abraham, a mobile payment expert with Experian. That’s one reason retailers like Wal-Mart and Target have rejected Apple Pay,” Pagliery writes. “But adopting Apple Pay is actually a strategic move for better customer tracking in the long run, Abraham said. If shoppers are more attached to their phones, then it’s easier to communicate with them in stores via Bluetooth and Wi-Fi signals. Indeed, several retailers who partnered with Apple told CNNMoney this technology fits perfectly with their high-tech plans. What they lose in credit card data they can make up with loyalty programs.”

Read more in the full article here.

MacDailyNews Take: Don’t shop at stupid retailers. Wait a bit until they smarten up.

[Thanks to MacDailyNews Reader “Dale E.” for the heads up.]