Apple Pay Could Be Apple’s Most Important Announcement

Sandwiched in between the iPhone 6/Plus, and the Apple Watch, was a brand new initiative that both new devices can perform. It’s Apple Pay, which is Apple’s version of the mobile wallet to link your credit/debit cards to your iPhone 6. The system uses NFC to connect with capable payment terminals at retailers allowing you to wave your iPhone, or Apple Watch to process a transaction. Apple Pay could be Apple’s most important announcement from the September 9th event even considering that the two new iPhones will be responsible for a majority of Apple’s revenues, and the Apple Watch is an all new product category.
NFC mobile payments have struggled to catch on even with so many companies trying their own solutions whether it’s the card companies, and banks Apple is partnering with, or fellow tech companies like Google & Paypal. The main hurdle no one has yet overcome is to get the NFC payment terminals into retailers. Apple just may have the user base to pull it off, if the early partners are any indication. The entire mobile payment industry has gone through growing pains over the past couple of years, but there has been stagnation more recently. There will be a lot more interest with the iPhone 6/Plus entering millions of hands during the holiday quarter with many users interested in getting set-up with Apple Pay. Retailers will respond if demand is there, and that can come from how easy, and secure Apple has made their Pay system.

First off, your iTunes card can be immediately added, and you can add additional cards by just snapping a picture. From there, the information is stored on a “Secure Element” specifically added to the device to store card information locally. Then, each purchase is given a unique one time use code, so retailers never get the card number, security code, or card holder’s name to then be hacked later. It’s all kept on your iPhone, encrypted, and secure, with the ability to be completely wiped remotely if your phone is lost. You also have to confirm purchases with TouchID fingerprint, which adds another layer of security.
Apple has ease of use, security, and credit & bank company connections in place for Apple Pay to really gain a foothold. Not just in the mobile payment marketplace, but in the common consciousness to force a wider roll out by retailers to meet the demand of those that want to use it. There is no overnight rollout, and it will be a long haul, but Apple has all the makings to pull it off to create the ubiquitous solution that is needed for the system to work. It’s a chicken and egg dilemma at the moment as retailers don’t want to invest in cash register overhauls without users to use the new registers, but users don’t want to invest in using their phones as wallets without the retailers having compatible registers. Apple Pay with the iPhone 6 can create the user base, and Apple’s brand recognition can get more retailers on board with demonstrated user base to change the way we all perform transactions.

Apple Pay can lead to the end of unsecured magnet strip cards, and completely change the way we shop, and spend money, which is a whole new level for Apple.


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