How will Apple Pay affect the mobile payment market?
Today Apple will introduce the Apple Pay mobile payment service announced last month. A few days earlier, Apple's CEO Tim Cook announced this at an event dedicated to the release of new iPad models and other new products.
Starting from this day, many goods and services can be paid directly from Apple devices by reading the payment information from the display of a smartphone or tablet using NFC (Near Field Communication) technology with user authentication through the fingerprint sensor Touch ID. True, this nuance at the entrance eliminates a huge number of users of the old iPhone and iPad models (iPhone 5 and iPad mini 2 inclusive), dividing the multi-million army of users of Apple mobile gadgets into 2 camps.
However, Apple itself kills two birds with one stone - it introduces a powerful payment system, which, at the start stage, will seriously compete with the leaders of the mobile payment market and encourage users to acquire new models of their iPhones and iPads.
')
To talk about the new service Apple began in September. From the moment when the technology giant from Cupertino announced its intention to enter the mobile payment market with its own payment system, Apple expressed a desire to cooperate with more than 500 banks and financial institutions, including Bank of America, Citibank, JPMorgan Chase and Wells Fargo.
Meanwhile, not all major players in the payment services market have received this news with enthusiasm. Some, like Visa, Mastercard and American Express, did not hesitate to agree to cooperate with a new market player, while others are preparing to confront him. For example, PayPal, which, in order to fully oppose Apple Pay, is separated from eBay.
What do analysts think of Apple Pay, what, in their opinion, does Apple Corporation have a chance to conquer a new market for itself, for which many companies, including such serious players as PayPal and Google, have been fighting for domination?
Most experts who have spoken on this point out that the introduction of a new payment system will give the digital payments world a powerful impetus, and small businesses are advised to look after Apple Pay more closely, because it has every chance of shaping the future of mobile payments.
Apple’s “digital wallet” is essentially a piece of software code activated through a mobile application that provides consumers with access to credit and debit cards, as well as a bank account to make purchases.
Starting today, with Apple Pay you can pay more than 200,000 outlets. Among the retailers who were among the first to cooperate with the new payment system were McDonald's restaurants, Walgreen pharmacy chain, and Target and Macy's department stores.
IPhone 6 and 6 Plus users will be able to upload up to 8 different credit cards to a smartphone, which have a new iPhone 6 will be able to download up to eight different credit cards, in addition, using Apple Pay you can pay for purchases in applications.
Anderson believes that for small businesses the last point is especially important because it will allow them to trade their products directly in the application without any intermediaries, which, apart from obvious convenience, will improve the brand positioning.
An equally important aspect of Apple Pay are the security measures that Apple has applied in its mobile wallet - experts say that payments with Apple Pay will be more secure than with plastic cards. The biometric fingerprint scanner will check that the payment is made solely by the owner of the smartphone. The NFC chip transmits payment information using tokens in an encrypted form, and not information about the bank account of the cardholder "in plain text."
And although it is too early to judge the potential of the service prior to its launch, these advantages can be Apple’s trump cards in entering the rapidly growing market of payment systems. Currently, the volume of e-commerce market in the United States is about 260 billion dollars, of which mobile sales account for $ 115 billion. However, according to some estimates, these numbers can triple in the next five years.
According to Western media
Starting from this day, many goods and services can be paid directly from Apple devices by reading the payment information from the display of a smartphone or tablet using NFC (Near Field Communication) technology with user authentication through the fingerprint sensor Touch ID. True, this nuance at the entrance eliminates a huge number of users of the old iPhone and iPad models (iPhone 5 and iPad mini 2 inclusive), dividing the multi-million army of users of Apple mobile gadgets into 2 camps.
However, Apple itself kills two birds with one stone - it introduces a powerful payment system, which, at the start stage, will seriously compete with the leaders of the mobile payment market and encourage users to acquire new models of their iPhones and iPads.
')
To talk about the new service Apple began in September. From the moment when the technology giant from Cupertino announced its intention to enter the mobile payment market with its own payment system, Apple expressed a desire to cooperate with more than 500 banks and financial institutions, including Bank of America, Citibank, JPMorgan Chase and Wells Fargo.
Meanwhile, not all major players in the payment services market have received this news with enthusiasm. Some, like Visa, Mastercard and American Express, did not hesitate to agree to cooperate with a new market player, while others are preparing to confront him. For example, PayPal, which, in order to fully oppose Apple Pay, is separated from eBay.
What do analysts think of Apple Pay, what, in their opinion, does Apple Corporation have a chance to conquer a new market for itself, for which many companies, including such serious players as PayPal and Google, have been fighting for domination?
Most experts who have spoken on this point out that the introduction of a new payment system will give the digital payments world a powerful impetus, and small businesses are advised to look after Apple Pay more closely, because it has every chance of shaping the future of mobile payments.
Apple’s “digital wallet” is essentially a piece of software code activated through a mobile application that provides consumers with access to credit and debit cards, as well as a bank account to make purchases.
Starting today, with Apple Pay you can pay more than 200,000 outlets. Among the retailers who were among the first to cooperate with the new payment system were McDonald's restaurants, Walgreen pharmacy chain, and Target and Macy's department stores.
"If you want to come to the market and attract the mass consumer, you need to start right away from a serious scale, which Apple did," said MasterCard Vice President James Anderson.
IPhone 6 and 6 Plus users will be able to upload up to 8 different credit cards to a smartphone, which have a new iPhone 6 will be able to download up to eight different credit cards, in addition, using Apple Pay you can pay for purchases in applications.
Anderson believes that for small businesses the last point is especially important because it will allow them to trade their products directly in the application without any intermediaries, which, apart from obvious convenience, will improve the brand positioning.
An equally important aspect of Apple Pay are the security measures that Apple has applied in its mobile wallet - experts say that payments with Apple Pay will be more secure than with plastic cards. The biometric fingerprint scanner will check that the payment is made solely by the owner of the smartphone. The NFC chip transmits payment information using tokens in an encrypted form, and not information about the bank account of the cardholder "in plain text."
"Innovations related to tokenization and biometric identification put Apple Pay apart from other market offerings, such as Google Wallet and Softcard," said Andy Schmidt, director of CEB research group TowerGroup.
And although it is too early to judge the potential of the service prior to its launch, these advantages can be Apple’s trump cards in entering the rapidly growing market of payment systems. Currently, the volume of e-commerce market in the United States is about 260 billion dollars, of which mobile sales account for $ 115 billion. However, according to some estimates, these numbers can triple in the next five years.
According to Western media
Source: https://habr.com/ru/post/240985/
All Articles