What did we do before paying with our phones? We swiped our cards, paid with key fobs, some used QR codes, and then we switched to chip & pin. Clearly there was room for improvement and with the rise of the smartphone and introduction of NFC was it bound to be a marriage made in heaven?
Back in 2014 Mark Rogowsky, writing for Forbes, had this headline:
1. Apple Pay Is Here And It’s Going To Be Great: Why The Skeptics Have It Wrong
“When you look at your smartphone, you probably don’t spend much time thinking about the poor calculator, day planner and digital camera it helped send to the dustbin of history. But starting today, that same phone is taking aim at another victim: your wallet and the credit cards you carry in it. Both are on “deathwatch” as Apple rolls out Apple Pay for the iPhone 6 and 6 Plus. While the impact of the new software will be limited at first, it will usher in a new era of convenience and security that will ultimately bring benefits to everyone — whether or not they are iPhone users.”
Then about six months later Gene Marks, again writing for Forbes, said almost no one was using Apple Pay.
2. Why Is Almost No One Using Apple Pay?
“We don’t want to carry around credit cards, or even our wallets, right? But we still have to. With all of the hubris and excitement over mobile payments I rarely see anyone buying things at stores and restaurants with their mobile devices. My family, friends and work colleagues all own iPhones or Android smartphones. We’re not afraid to download Apple Pay or Google Wallet or another mobile payment service and get it configured. And yet, we are still overwhelmingly using credit cards like we’ve always been doing.”
But that soon changed and over a very short space of time it did become popular. A new poll of processing partners found that Apple Pay was by far the most desired tap-to-pay method, easily exceeding demand for rival services like Android Pay, PayPal and Samsung Pay.
3. Apple Pay dominates merchant mindshare for contactless payments, survey finds
“Investment firm Piper Jaffray polled 507 value added resellers and independent software vendors, and found that 44 percent of their point-of-sale merchant customers are already using or have requested more information about NFC payment terminals. Among those interested in contactless payment solutions, 67 percent of merchants expressed a desire to support Apple Pay. That was by far the most popular option among merchants, the poll found, easily besting second-place finisher Android Pay.”
Last week we looked at EMV and the issues surrounding its implementation in stores, the frustrations of customers unable to use their new chip and pin cards, as well as overall payment security. The net result of this has created ongoing confusion in the payments space which means alternatives can sneak in. Read it here.
Matt Asay of TechRepublic writes a piece about the slow adoption of EMV in the US and what that means for the likes of alternative payment systems, which are just waiting in the wings ready to pounce.
4. Apple Pay’s best friend? Slow chip-and-dip EMV cards
“When a merchant doesn’t support Apple Pay, I get frustrated, especially if they impose on me the dreaded chip reader.” – Matt Asay
When something becomes popular, it also becomes a target. Thomas Fox-Brewster wrote in Forbes about the nefarious side of fraud and Apple Pay.
5. Here’s Proof Apple Pay Is Useful For Stealing People’s Money
Apple Pay has numerous benefits when it comes to ease of use and security. It brings payments under the manifold protections of iOS, whether that’s Apple’s much-debated encryption or largely successful repellence of malware.
But, according to security researchers from anti-fraud firm Pindrop, there’s one area where Apple Pay and its banking partners don’t go far enough to stop criminals: preventing stolen credit card details from being uploaded and accounts subsequently drained.
There you have it, the ups and downs of arguably one of the world’s most popular payments system. As an iPhone user I was intrigued by Apple Pay upon it’s announcement and now use it for more than 90% of transactions.
If I find smartphone payments useful, others are bound to follow suit in time. We have Oyster cards and increased use of contactless cards here in the UK, so Apple Pay and the like are natural extensions. Whether you’re a fan of paying with your phone or watch, these new forms of payment are here to stay.
If you’re interested in all things payments, why not come along to the All Payments Expo in New Orleans? Retailers can go for free! Go to our main event/ticket site: All Payments Expo Event Website All Payments Expo Event Website