Lets talk more about Apple Pay


applepayimage

Why is Apple Pay?

At Apple’s September 9th, 2014 iPhone 6 releasing event, Apple pay was born. According Apple CEO Tim Cook, In US the daily amount of credit card spending is $12billion with $200million Creditcard transactions. However, Creditcard payment process is still very cumbersome. Cook said all the previous mobile payments have failed, its time for a better service for us, Apple Pay.

How does Apple Pay work?

Apple Pay is based on Near Field Communication (NFC) technology and use TouchID、Passbook in IPhone to conduct. In order to set up, user has to add own payment card to Passbook. Meanwhile, a unique Device Account Number is assigned. Following by that, your credit and debit cards information will be stored in a Secure Element, a dedicated chip in iPhone. After a successful set up, according to apple: “To pay, just hold your iPhone near the contactless reader with your finger on Touch ID. You don’t even have to look at the screen to know your payment information was successfully sent. A subtle vibration and beep lets you know.”

You can also a new card to IPhone. To add a new card on iPhone, use your iSight camera to instantly capture your card information. Or simply type it in manually. The first card you add automatically becomes your default payment card, but you can go to Passbook anytime to pay with a different card or select a new default in Settings.

Is Apple Pay safe?

Security is still the most important concern customer may have. In order to guarantee payment safety, the Device Account Number, along with a transaction-specific dynamic security code, is used to process your payment when you make a purchase. Therefore, your actual credit or debit card number will never be shared by Apple with merchants or transmitted with payment. The senior vice president Eddy Cue said, apple is not interested in building a collection of user data service. “Apple does not know what you buy, where to buy, pay how much money for this commodity.” Cue with special emphasis on “privacy” here, the formation of significant difference with Google. Besides that, since all of information is highly integrated in IPhone, you may ask what if user iPhone is missing? Well, Apple’s users can use “Find my IPhone” service to quickly put your device in Lost Mode so nothing is accessible, or you can wipe your iPhone clean completely.

Will Apple Pay have a good prospect?

Apple already reached collaboration with American express, MasterCard and Visa, and a partnership with Bank of America, Chase, Citybank, Wells Fargo and Capital One. This means about 80% America credit card users will be covered. Besides that, Apple also announced other payment support partner, which includes McDonald’s, Subway, Starbucks, Disney, Petco, Macy’s, and Sephora etc. Apple is committed to extend Apple Pay to more countries. “This will change all the people buying habit.” Cook said.

I have to say though everything sounds really good, unlike Cook himself, I still have a few concerns. Will Apple Pay bring any legal issues to Apple? Is Apple Pay really going to be another service that Apple can change our life? Is Apple Pay an enemy or friend for traditional financial institutions…

What do you think?

Sources:

Jeffries, Adrianne (September 9, 2014). “Apple Pay allows you to pay at the counter with your iPhone 6”. The Verge. Vox Media. Archived from the original on September 13, 2014. Retrieved September 13, 2014.

Why Do People Think Apple Pay Is So Innovative When Google Wallet Has Been Part Of Android For Two Years? Forbes.

http://www.forbes.com/sites/quora/2014/09/18/why-do-people-think-apple-pay-is-so-innovative-when-an-equivalent-has-been-part-of-android-for-two-years/

http://www.apple.com/iphone-6/apple-pay/

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2 responses to “Lets talk more about Apple Pay”

  1. 345154ow says :

    I think Apple Pay is a wonderful idea. Already for years I am wondering when the Western world will finally copy the extremely successful M-Pesa service that operates in Kenya and Tanzania (out of all places!). Sure, security is still the most important concern a customer may have, but isn’t that also the big concern around ING mobile banking without an identifier but with a simple code? And did any large problems arise with that? I believe not! Obviously, Apple will have to invest in all possible ways to make the customer feel secure by using the service, but I am sure this is not so hard to tackle. Look at M-Pesa; African people use it for everything! 5 bananas on the market are easily being paid with a simple M-Pesa text message, and restaurants that do not offer the M-Pesa option are getting less and less popular. Moreover, open up your eyes! We have gathered everything on our phones. Yes, battery life is a big problem, and I still do not understand why the Iphone 6 had to have a larger screen in stead of an expanded battery lifetime, but let’s pray for the best in the near future. We shop on our phones, we are being social on our phones, we read the news paper on our phones, we navigate routes… It is old-fashioned to not have all payment issues included in these services yet.

  2. 354842tv says :

    I think it’s only a matter of time before we start paying with our Smartphones. As said above, everything is done with your phone nowadays; paying bills will form no exception. With online banking being a commodity nowadays, people are already used to making transactions by mobile phone. I think that in the next decade the cry for paying by phone will become louder. Also, because some phones are getting ridiculously expensive (you all know which phone I am talking about 😉 ), customers will demand more of their phone.

    I also read that ING is already working on paying with scanning. They are in an initial testing phase with the ING card – you can now scan your card in order to pay, and no longer need to type in your digits. Further, they want to extend this to mobile phones. As it seems, paying by scanning is already a trending topic and will only increase in popularity.

    Security might be an issue on the short-term; however, in the long run, I think that carrying less cash money around only makes life safer. A drawback is that money will become an intangible asset. For people, it might become tempting to buy more, because paying is so easily done.

    A problem I foresee though is that some stores will adopt this paying mechanism where others will not. Initially this might be a problem, because at different stores you will have to pay in different ways. As said by OP, famous brands such as McDonald’s, Subway, Starbucks, Disney, Petco, Macy’s, and Sephora will be quick to tap into this new type of paying. My question is though; will smaller retailers suffer because they don’t offer this, or will the traditional way of paying peacefully coexist with the new form of mobile paying.

    In conclusion, I foresee a future in which we are paying with our Smart devices. In the beginning this will be phones; however, maybe later on this will shift to Smartwatches and the next trends in technological gadgets.

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