“Back in January, Apple CEO Tim Cook dubbed 2015 ‘the year of Apple Pay,'” Ian Kar writes for Quartz. “His bold prediction about Apple’s mobile wallet, which turns a year old this week, might have been a bit optimistic.”
“But we shouldn’t be so quick to dismiss Cook’s claim outright. The year 2015 could turn out to be a major inflection point for mobile wallets,” Kar writess. “If so, it would be due in no small part to the US credit-card industry’s long-awaited move away from magnetic-stripe technology.”
“The transition to chip cards, which became the standard in the US on Oct. 1, was intended to bolster the card industry, of course. But it also offers a rare opportunity for upstarts with contactless (i.e. mobile) technology to become mainstream players in payments,” Kar writes. “While chip cards are more secure, they also take longer to process—in some cases up to 20 seconds longer, analysts say. This alone could motivate more customers to use mobile-payment systems, which are typically faster.”
Read more in the full article here.
MacDailyNews Take: Apple Pay already has a nice foothold in the U.S. and is sure to grow, but it really needs to spread to more countries ASAP in order to become more of a first choice and less of an “do I really want to deal with trying Apple Pay here” afterthought.
Apple Pay adds over 70 new U.S. banks and credit unions – October 20, 2015
Apple Pay should benefit immensely from Starbucks partnership, international expansion – October 14, 2015
Bank website outs Apple Pay debut in Canada – October 13, 2015
Starbucks, KFC, and Chili’s to accept Apple Pay this year – October 8, 2015
Apple starts Shanghai tech service company to bring Apple Pay to China – September 17, 2015
Apple Pay in Australia faces $2 billion fee sticking point with Aussie bankers – August 17, 2015
Apple Pay launches in the UK – July 14, 2015
Apple Pay launches today and retail will never be the same – October 20, 2014
I’m not currently using Apple Pay because I’m getting 5% cashback through TSB on wireless transactions and they’re not yet switched on for it. I have other banks that I have accounts with, but since 95% of my real world spending (at least in terms of number of uses) is on the Tube, 5% is worth more to me than being able to use Apple Pay. Since I only keep a small balance on that particular account I’m not concerned about security as such. I’ll no doubt use it more, but it’s not something that is just going to overnight become the dominant payment method. Plus, ultimately people aren’t going to magically spend more because they can use their phones. It’s just another piece of the overall Apple offering that sells their hardware.
Annoying that Apple doesn’t incentivize its use, but I can see why they don’t want to. If they incentivize it they either take a small hit or they have to charge retailers. Which one do you think will fly? Neither.
Apple doesn’t own the accounts themselves, they’re just the medium. Meanwhile, neighbors to the north have been on Chip n’ Pin for years, use a standardized interac banking network so all cards from all banks ‘just work’ everywhere, and were early adopters of Contactless cards.
ApplePay’s incentive is that the vender gets no more information about you than if it was a cash transaction.
If a product is free, you are the product. That goes double for products with incentives.
Apple doesn’t have to incentivize anybody.
Now that chip cards are being issued in the US, merchants will be forced to upgrade their terminals. The very slow pace of terminal upgrading (in the US) is the primary reason mobile pay, not just Apple Pay, has lagged in the US.
It requires a smartphone to use mobile pay. In the US iPhone is the dominant smartphone, and the iPhone demographic is wealthier and use their cards more often.
Whatever the line is about current Apple Pay use today it won’t be relevant a year from now.
Although Apple hasn’t incentivized it, my wife’s bank offered a $50 incentive to try out Apple Pay.
Apple Pay is already going gang busters as the convenient and secure way to pay for regular small ticket items here in the UK. It is routinely used by many many people in London for transport across London, convenience stores, coffee shops and eateries; this is spreading rapidly to other larger cities in the UK.
Part of the problem is the resistance of merchants to change. They are hanging by a thin thread, the longer they wait the greater the chance they will have to pick up the tab for using older insecure technology.
I wonder if security is not the only fear Merchants have with Apple Pay. After all, they know their business.
Buying your Coffee and Donuts on your Phone is cool. And conveniently by-passes the line-ups. However, in the same situation, without Apple Pay – a customer faces other enticing treats and possibly will spontaneously purchase additional items.
In that case, Chip n Pin / Tap n Pay is just as safe and just as convenient regarding the merchant’s perspective.
What this article fails to understand is that the U.S. Has only recently been forced to use chip and pin. It has been used in Europe for years.
In Canada Chip n Pin / Tap n Pay have been wonderful.
Apple Pay promises be even more convenient.
I have to think, however, all these venders who have say, large line-ups for coffee for example, will suffer in some way – when customers come to pick up their order – not just by-passing lines of people but the displays of offerings. Spontaneous purchases account for many things bought. Pre-Paying with Appel Pay ends that situation somewhat.
I’ve used Apple Pay a half dozen times since I got my 6S and it is a delightful experience, where it is available. The biggest problem I have is knowing when it is available, as most credit card machines don’t actively promote that they work with Apple Pay or any other mobile wallet. But at least things are moving forward with Apple taking the leadership role. They have made it safe and more top of mind than others.
The Canadian banks are still fighting with Apple expecting Apple to run Apple Pay for free or even give the banks a premium for allowing it in Canada. Canadian banks are greedy and the first bank to allow Apple Pay in Canada will get all my business. I will move over my mortgage, my savings and my trading accounts and try to convince my colleagues, friends and family to follow.
Looks like Apple Pay in Canada is going to launch very soon.
Pfft. Yeah, chip cards became the “standard” on 10/1, yet I know of precisely two retailers in my area that use them: Target and a small independent deli, curiously enough. Many other businesses I frequent have card terminals installed with chip-reader slots, but not a single one is actually using the slot. Retailers truly don’t give a sh*t. It’s like they’ve run the numbers and decided that the risk of fraud losses isn’t worth the trouble of upgrading.
Chip cards take up to 20 seconds longer to process? What steam age technology are you using in the US?
To pay by card in an Australian supermarket you tap the card on the card reader device. It takes less than 3 seconds and you’re done…
The other day I left for work without my wallet (was in a rush!). Just before 5, I was called by some friends who were out for drinks. Although I didn’t have my wallet, I had my iPhone 6 on me.
…Things would’ve gone so much better if Apple Pay was actually rolled out in Australia. Dammit Apple, it’s been a year now!
What, please tell me, is more convenient than just whipping out the debit card and swiping? Takes all of 10 seconds. I see no compelling reason to involve Apple when *everyone* takes my card now.
Oh, and that ‘kapkanga’ dude is just creepy.
UK banks are really pushing Apple Pay at the moment, here’s some of the commercials:
Natwest (and RBS)
The Santander UK Spendlytics App looks pretty cool.