Lets talk more about Apple Pay
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?
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.