Apple Pay is a feature in iPhones that allows users to authorize a transaction in a store by holding their phone up to an NFC reader. Mobile banking insureds like Dan Schatt are watching closely to see if this new technology will revolutionize how we pay for things.
The service is greeted with almost cult-like enthusiasm from consumers, financial institutions, and merchants alike. This enthusiasm stands in contrast to some early concerns expressed when Apple Pay was first introduced – many of which have been proven to be unfounded. Some of these concerns included:
- Will consumers really want to use their phone instead of just swiping a credit card?
- Will this new technology be secure enough to protect consumers’ data?
- Will merchants really be willing to accept payments via Apple Pay or reject traditional payments methods that are less expensive for them to process?
So far, the answer to all of these questions seems to be a resounding “yes.” Apple Pay is being used by millions of consumers and is accepted at over two million locations. In addition, it is very secure – Apple Pay does not store your credit card number on your phone or share it with the merchant. And, merchants are happy to accept Apple Pay payments because they typically cost less to process than traditional credit card payments.
So what’s behind this overwhelming success? There are likely several factors at work, but a few stand out. First, Apple has a huge installed base of iPhone users who are already familiar with the Apple Pay interface and its use. They also trust Apple to deliver a high-quality consumer experience and can be expected to adopt new features like this quickly. Second, Apple Pay is simple for consumers to understand and easily adopt. Third, the service has been widely supported by major financial institutions and payment networks from day one, ensuring that people can use their preferred cards with Apple Pay. And fourth, tech-savvy consumers are embracing mobile payments as a way to make their lives easier and more efficient.
Here are three ways Apple Pay will change the game for consumers:
Convenience – Apple Pay is the most convenient way to pay for things. You don’t have to carry a wallet or purse, and you don’t have to fumble through your pockets or bag for your credit card. Instead, just hold your phone up to the NFC reader, and you’re done.
Security – Apple Pay is very secure and uses industry-leading technology to protect your data. Your credit card number is not stored on your phone or shared with the merchant, and you can use TouchID to authorize transactions.
Speed – Apple Pay is fast – much faster than traditional credit card payments. There’s no need to enter a long credit card number or type in your PIN. Just hold your phone up to the NFC reader, and you’re done.
Apple Pay is changing the game for consumers, financial institutions, and merchants alike. It’s convenient, secure, and fast – and it’s here to stay.