It took them a while, but Apple has finally unveiled their Apple Pay Mobile payment platform. It is a payment platform that builds on the current credit card system where you tap your phone to a payment terminal instead of swiping a plastic card. This uses a technology called NFC (near field communication) that allows easy transfer of data through a very short distance, allowing it to be more secure and preventing data interception.
When Google failed to popularize and implement the Google Wallet payment system (a predecessor to Apple Pay) many believed that it would take an Apple-based implementation to truly popularize the mobile payment scheme. Does Apple really have the chops to succeed where Google – a much larger reaching company – failed?
Apple has been extremely successful at making originally geeky and extremely technical products work for even the absolute beginner. Their slogan “It just works” is expected and experienced by most of their customers. On top of that. They have such a massive market pull, brand loyalty, and an amazing brand recognition. Now, all those factors will shape how Apple Pay will succeed in this market dominated by plastic credit cards.
The Apple Pull
Let’s face it, when Apple moves, the market budges. Boasting the largest library of accessories and third-party market support in the world, Apple’s products can change and affect the industry far more than other companies. Adoption rate of the Apple Pay system is expected to exceed that of previous implementations. Apple is also known to make carriers bend to their will so we might not see the same carrier blocks that prevented Google Wallet from making any progress.
The Apple Loyalty
Fans of Apple’s products tend to fully use what the iPhone can do. They are also more likely to make payments using their expensive smartphone. As such, they are definitely more likely to try out and eventually adopt Apple pay unlike many of the other mobile payment systems in the market.
The Apple Brand Recognition
This is Apple, a brand that is recognized all over the world for 2 things – security and dependability. It is also a brand that is recognized for customers who are more likely to spend. With that in mind, more companies are likely to adopt an NFC payment terminal to be able to receive payments from such customers. With more stores encouraging the use of Apple Pay, it is only a matter of time before it dominates the mobile payment system.
While Apple may not end up being the most widely used mobile payment platform in the end, it will definitely be the torch that leads the way. With Apple making people more aware of the technology, other platforms that preceded Apple Pay will also start receiving some attention, thereby changing the credit payment system across the globe. This move could practically replace plastic credit cards in a smartphone dominated country.