Recently, on 20 October 2014, the world finally witnessed Apple taking a bold step by adding a wallet to the series of iPhones, popularly known as Apple Pay. It had been anticipated for a while and now finally sees an official launch. This newest payment service from Apple will enable use of thumb-prints in an iPhone to shop items available across 2, 20, 000 global stores. To name a few of them, the list of stores includes Walgreen, McDonald’s Whole Foods, and more. It has still not been able to rope in world’s largest retail store, Wal-Mart.
The reason being, very few machines actually can read NFC (Near Field Communication) signals necessary for the functioning of Apple Pay. Moreover, since the technology is currently only present with iPhone 6 models, there is still lot of work to do by Apple. Nevertheless, Apple has signed up with 6 biggest credit card companies that account for approximately 83% of world’s transactions with next year seeing 500 new additions in financial institutions. It has already tied up with 3 largest credit-card networks – American Express Co., MasterCard Inc., and Visa Inc.
The company has targeted Apple Pay as easier and safer alternative, to pay by smartphones, replacing traditional credit card, check, or cash system. Still there is long way to go for accepting prepaid cards, corporate credit cards, discount cards, and such other alternatives. This clearly states that customers will have to wait for some more time for availing good discounts on certain store cards. These type of cards such as Macy’s store cards expected to add gradually. More than half of Macy’s sales generated from the proprietary card that has a loyalty program as well. These cards act as a big loophole that Apple still needs to surpass.
The company says that they will be resolving this issue with time. Many merchants among these anticipated to upgrade their payment terminals in order to accommodate chip having integrated cards for avoiding anti-fraud liability. These terminals will be fully equipped with NFC (Near Field Communication) technology.
With Apple Pay, a credit card needs to register through image of the card. Then with one touch ID reader, buying is done by the shopper. Currently Apple Pay works with the iPads of latest generation for within the application purchases. Still tablets need to be covered for physical stores. Adding it further, Apple’s smart watch is going to have inbuilt NFC chips. Apple Pay will be highly equipped with security feature through a one-time distinctive code. This is a security feature that will safeguard personal information of consumers, because the information is transmitted over retailer’s network, getting stored in the central database.
Apple would be paid by banks for every individual transaction, but there will not be any charges for merchants or users. Until today users had to create an account, register their card, and then were able to make a purchase available within the application. Now the process will be simplified through a simple fingerprint. In 2011, Google made an initiative by introducing Google Wallet that failed to gain viewer-ship in case of Android.