Apple Pay is the system that Apple introduced this fall to allow you to store credit card and other card information on your phone and very easily pay with your iPhone 6. What makes this possible is the NFC chip Apple now includes in the iPhone 6 and merchant machines designed for credit cards that use the chip and PIN system. Simply tap your phone against an NFC enabled pay machine and that’s it.
In a Zicos article titled “Apple Pay has strong mementum; took 1% of digital payments in November” they note how quickly Apple has already obtained approximately 1% of the payments. Extrapolated by numbers produced by IDG, they go on to note the company at most risk for rapid growth by Apple is Paypal.
When Apple Pay was announced by Apple this fall, it was clearly seen as one of the most significant announcements. Apple has 550 million credit card users, probably the largest installed base of users of any company. Their potential to make an impact in the market is one of the strongest by far.
The User Wins
The current payment model is rather long in the tooth and increasingly growing more inconvenient. Out wallets are loaded with a slew of cards. We have a variety points collection cards to credit cards and on it goes. Apple’s scheme would modernize this substantially.
Rather than having to carry around this slew of cards, they would all be stored in our phones. Choose a card to pay for something and at checkout tap your phone instead of a physical card on the chip reader and transaction processed we’re under way rather fast.
Security as the Ultimate Beneficiary
We have been using our current pay model for quite some time now. With that, it has become very vulnerable to security breaches as we introduce a new model for purchasing that would thusly require a new model and a secure model for payments.
From a convenience standpoint the new model is being embraced and internet shopping continues to grow substantially year over year. With that though goes security breaches when the purchase side of the equation is out of lockstep.
The beneficiaries of a more secure payment system is the consumer as it helps keep the cost of goods and services lower, increase convenience and decrease hassles. It is time for a new model for the payment side of things and it is likely Apple has introduced that model.