About to test Apple Pay at the local Walgreens. Photo: Jim Merithew/Cult of Mac
Critics are fond of saying Apple doesn’t innovate any more. But Apple’s new electronic payment system, Apple Pay, is innovation of the highest order. After a relatively smooth rollout this week, I honestly believe Apple Pay is the future of payments.
Even so, Apple Pay must clear some big hurdles if it’s to become the universal standard. For now, it’s limited to Apple’s latest iPhones and a relatively small number of retail partners, but the basic system — using your fingerprint to validate a purchase on your mobile phone — is the way we will pay for goods and services in the future.
Once again, Apple has shown the world how things should be done.
It’s not just Apple Pay that’s going to let you transfer funds using your iPhone. According to hidden code discovered in Facebook Messenger’s iOS app by Stanford student Andrew Aude, Facebook is also exploring the area — with a forthcoming feature that lets you send money as easily as you would “like” or share a photo.
Apple’s partners went to extremes to keep news of Cupertino’s mobile payments entry quiet.
Apple goes to some pretty crazy lengths to ensure secrecy for its various projects, and it expects a similar commitment from its partners.
According to a New York Times article, prior to releasing Apple Pay, the key players (which included Apple and banks such as JP Morgan Chase) referred to each other by code-names after rumors of Apple’s interest in mobile payments surfaced in early 2013.
Apple Pay’s ease of use may lead to increased impulse buying — and that’s exactly what Apple’s hoping for.
More and more retailers are already using NFC terminals, but there is an additional reason why those without them might want to hurry up and get onboard: because Apple Pay could lead to more impulse purchases.
That at least seems to be the rationale of Walt Disney World, according to a new report.
A partnership with Walt Disney World was announced on Tuesday, and as per About.com theme park expert Arthur Levine, Disney is convinced it’s going to prove a great way of upping the amount customers will spend.
“It is surely hoping that by giving visitors the ability to use its cash-less system anywhere across the Disney World campus, they will increase spending, especially on impulse purchases,” Levine says.
Apple Pay will replace your wallet, as well as giving Cupertino an iTunes-like slice of every sale.
Apple might be a hardware first company which creates software only to drive sales of its physical devices, but that doesn’t mean it can’t earn a bit of money from its services, right?
According to a new Bloomberg report, Apple will earn a fee every time its newly-announced Apple Pay service is used to make a purchase.
The deals were reportedly brokered by Apple with each bank individually and will give Apple a sizeable share of the $40 billion generated by banks each year from so-called swipe fees for credit card payments. JPMorgan, Bank of America and Citigroup have not yet disclosed the terms of the deal.
Details surrounding Apple’s mobile payments platform have been surfacing more frequently leading up to its big media event tomorrow. Now it’s being reported that Apple will incentivize merchants and customers to use its service with a special rewards program.
Jean-Louis Gassée thinks mobile payments are, first and foremost, a way to sell hardware.
Former Apple exec Jean-Louis Gassée has posted a new edition of his always enjoyable Monday Note blog, arguing that Apple isn’t intending to disrupt banks and credit card companies with its entry into the mobile payments world.
It’s an interesting read, and makes a whole lot of sense: pointing out that Apple’s mobile payment drive is simply an extension of the company’s current strategy.
Apple could use both NFC and tokenization as part of its mobile payments drive.
In addition to near field communication (NFC) as part of its mobile payments drive, Apple will be incorporating something called “tokenisation” technology, according to sources who spoke with Bank Innovation.
As the report explains, “Financial institutions — card issuers and networks — prefer token technology because it replaces primary account numbers, those 16-digit card numbers on the front of credit and debit cards. Instead, the tokenization technology uses complex codes that are easily transmittable over the air and between devices, but that are used only once, so even if they are intercepted, are of no use to fraudsters.”
Apple has been investigating tokenization technology for several years, with multiple patents relating to the process dating back as far as 2009.
Pictures of what is allegedly a working iPhone 6 have surfaced on the Chinese social network Weibo. While tons of parts have leaked up to this point, this is the first time we’ve seen what appears to be the device powered on and running iOS 8.
The 4.7-inch device looks legit, although it’s authenticity cannot obviously be confirmed. On the screen, there’s a new Passbook icon. This hints towards the mobile payments platform Apple is expected to unveil at next week’s event.
An ‘EasyPay’ concept that imagines how Apple could handle mobile payments.
The five largest banks in the U.S. have reportedly struck a special deal with Apple for its upcoming mobile payment platform.
According to Bank Innovation, Apple has managed to negotiate a lower transaction fee with American Express, JP Morgan Chase, Citigroup, Capital One, and Bank of America. How? By convincing them that Touch ID and location-aware NFC will make its mobile payments more secure.