10 years ago:
Cashier: “How would you like to pay for this?”
You: “Charge it!”
Cashier: “Your total is $96.32.”
You: *Pay with your cell phone*
In October of last year, Apple introduced Apple Pay to the world. Apple Pay is a digital wallet that allows users to make payments with their phones. The invention of Apple Pay has left many asking about the fate of credit cards and if they even stand a chance in the future. At this moment in time, Apple Pay has not, yet, trumped credit card usage; however, its future looks somewhat promising. As of early March, Apple Pay has been accepted in nearly 700,000 locations and supported by 2,500 banks- compared to the six banks that jumped on board after its September announcement.
Phoenix Marketing International surveyed 3,000 credit cardholders and found that 2 out of 3 iPhone 6 use the Apple Pay. The use of this mobile payment service has increased since its release date. It has also been reported that 2 out of 3 users has had issues using the service, at some point since adopting this method. Some of the issues encountered were dysfunctional terminals, inaccurate transaction postings, and an absence of in-store assistance.
For those not faithful to the Apple brand, there are other mobile payment options. LoopPay, Google Wallet, Plastc, and Coin are four alternatives that allow for mobile payments. Let’s look at Google Wallet. It works on many models of Android phones, whereas Apple Pay only works on two Apple phone models. Google Wallet can be deemed as more secure because it doesn’t use credit card numbers for payments but unique tokens. The downside to using this alternative is if the phone does not have biometric security, a PIN will have to be keyed in- which will defeats the purpose of convenience.
Apple Pay is not the first system allowing mobile pay; however, with the influence the company has on its users, they have undoubtedly made mobile payments mainstream. It is predicted that within 5 years, mobile payment will experience a 172% growth.
How many GFE readers use Apple Pay or alternatives for mobile payment? Comment and share with us your experience and whether or not you will use this system in the future.
-Unique tokens: an identifiable system used in place of credit card numbers
-Biometric security: technology used to define a person’s identity- through facial features, voice, retinal scans.–> example: Apple’s TouchID