How big of a success is Apple Pay? Just three weeks after its launch, Apple’s mobile payment system is already a player at Whole Foods, where it represents almost 1 percent of all transactions.
Apple’s mission to replace your wallet with Apple Pay began just last week with support from more than 200,000 stores in the United States, but some merchants have already launched a war against the new payment platform.
Over the weekend, CVS and Rite Aid stores blocked Apple Pay access at their registers, marking the first counterattack in what will likely be a fierce battle to own your digital wallet. Apple Pay’s growth is unprecedented, but the anti-Apple Pay group is backed by a superhero-size team of retail megastores conspiring to make debit and credit card fees extinct. They’ll stop at nothing to see it happen, even it means hurting Apple (or themselves) in the process.
Here’s everything you need to know about the war on Apple Pay and why it’s doomed to fail.
Just like one of The Avengers — where bickering superheroes team up to fight a far more oppressive evil — Apple and Android fans on reddit have united forces to boycott what they see as the unethical blocking of NFC payment systems by a number of different retailers, affecting users of both Apple Pay and Google Wallet.
The reason for this blocking of the NFC service is that the retailers in question — including Gap, Old Navy, 7-Eleven, Sears, Kmart and others — are part of an organization called Merchant Customer Exchange, which uses its own payment system called CurrentC.
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.
Apple put mobile wallet payment platforms like Google Wallet, Square and PayPal on notice this week with the reveal of Pay, but before Cupertino decided to launch its answer to the wallet, sources tell TechCrunch the company was eyeing an acquisition of Square.
Square’s simplistic payments platform seems like it would have been the perfect fit for Apple and would have added “Next Steve Jobs Nominee” Jack Dorsey to its loaded executive ranks, but after Apple executives failed to put enough cash on the table, Square walked away from negotiations.
Great news for corrupt restaurant employees and criminal scum everywhere: you can now use the latest Google Wallet app to skim credit cards right into your iPhone. In theory at least. And without actually recording the magnetic strip. But “Google Wallet update allows easy addition of credit cards using the iPhone camera” doesn’t have the same link-baiting ring to it. So scum and villainy it is.
Good news, Google Wallet users — you can now access your account on your iOS device with an official Google Wallet app. You can use it to make payments to friends, track your loyalty cards, and access nearby offers. One feature you won’t find, however, is tap-to-pay, which relies on NFC connectivity.
Got an Android phone with NFC and ticked off you can’t use it anywhere for mobile payments? Blame Apple. According to one industry watcher, the Cupertino-based tech company is responsible for setting back the emerging NFC market by two years in the United States.
Google Wallet has been out for almost a year now, and it allows you to store your credit cards on your Android phone and make payments via NFC, but because of limited partnerships during its launch, it hasn’t really taken off yet.
Now that Google’s seen some of the features Apple plans to bring to the iPhone with the Passbook app, Google has decided to double down on Wallet and bring in new features so it functions more like Passbook.
If you thought the heat of the mobile payments industry might cool a bit after weeks of major announcements like the Square/Starbucks partnership, the launch of a new mobile payment company dubbed MCX by several national retail chains, and PayPal’s trial of in-restaurant payments at McDonald’s locations in France, think again.
PayPal announced the biggest partnership yet in the U.S. mobile payments market today – a deal with Discover that will bring PayPal in-store payment to seven million locations next spring.
Square’s announcement of its partnership with Starbucks and the launch of new mobile payment company by several key retail and service chains were signs that the mobile payment industry and digital wallet concept is big business. Late last week, however, there was more news on the mobile payments front that proves that the race is far from over – one could even say that it’s barely started.
In a move that could make Square’s deal with Starbucks seem small and limited, Reuters reports that PayPal may soon be expanding its brand of mobile payments to include on the biggest fast food chains on the planet – McDonald’s. PayPal is currently testing a payment system in 30 McDonald’s locations in France. The company demoed the technology earlier this year.
In a move that makes the Square/Starbucks partnership announced last week look like small potatoes, a group of national and international retailers announced plans to develop their own mobile payment network complete with mobile apps and digital wallet functionality. The move seems almost certain to shake up the nascent mobile payments market where a wide range of companies and organizations have been trying to figure out the secret sauce that will turn mobile payments into a mainstream retail system for the past couple of years.
The Merchant Customer Exchange or MCX, as the new company is known, plans to deliver a solution that offers convenience in both making purchases and in receiving customizable offers from retailers. Development of a mobile app and payment network are underway, but MCX has yet to announce any details about either the app or its network.
Mobile payment technologies have an interesting and complicated relationship with local businesses. On the one hand, local mom-and-pop restaurants, shops, and services are probably the companies that you’d expect to adopt new payment technologies the slowest – particularly if those technologies require new point of sale hardware like an NFC reader. On the other hand, mobile payment systems could be poised to deliver a new wave of business to such local companies.
Making the situation more complicated is the fact that any mobile payment system (Google Wallet, PayPal in-store purchasing, or any system that Apple may be slowly developing) can’t be considered a solid winner or option unless that system strikes it big with local businesses. A system that only applies to large chains, like the in-store purchasing the PayPal rolled out to Home Depot and other retailers, can’t be considered mainstream unless it’s adopted very widely and by a significant percentage of small businesses.
Further complicating the relationship is the fact that many players in the race to create a true digital wallet are on focusing widely varying options for small and local businesses. That means that no one company is leading and no company really seems to have a consistent strategy for tapping this immense and important market.
Read enough articles about NFC and its potential for mobile payments and you’ll find yourself thinking the technology is the inevitable mobile payment platform. Every major mobile platform except iOS already includes or will include support for NFC-enabled devices. There are lots of partnerships being announced between key players like device manufacturers, carriers, and banking or credit card companies. It also just seems to make sense that this is the future.
Until you look up from all the stories about what NFC and look at what’s really happening in the world. You don’t see much evidence of NFC payment systems in everyday life. NFC isn’t yet emerging into mainstream commerce, but there is ample evidence that mobile payments are taking off without it. Those options becoming mainstream are decidedly low tech by comparison, but that’s precisely why they’re succeeding.
We’re super excited for iOS 6. Although it isn’t the complete iOS overhaul many users were hoping for, it does deliver a whole host of new features — like a new Maps app, user interface enhancements, improvements to stock apps, and Siri support on iPad — that we’re certainly looking forward to.
However, it’s hard to ignore the fact that iOS 6 still has some things missing. Things we’ve been waiting for for some time. Here are seven of them.
There’s been a lot of talk over the past year or so about mobile payment systems and the concept of an iWallet. One of the challenges to any digital wallet concept is that it needs several components, most of which are provided by different companies and governed by different regulations. At a minimum, those components need to include on-device hardware, a mobile app or OS that can manage the transaction, a banking or credit card system that actually transfers money from your account to a retailer, support by major POS and cash register systems, and some mechanism for your phone to securely check-in with your selected account(s) to ensure money is available for purchases.
That’s a tall order and a lot of cooperation is needed when you have a different company providing each of those required functions. One way to simplify the process is to have one company deliver all or most of those functions on its own. There are few companies in the world that can pull all those capabilities together. One of them is Apple.
Experts at the Intrepidus Mobile Security Group came across some interesting parsers definitions within Google Wallet’s source code that could hint at a possible iOS release. How Google actually plans on getting Google Wallet to work on a non-NFC/SE iOS device is another story, but for now, let’s take a look at the iOS definitions found by Intrepidus.
In 2012, Apple will roll out Near Field Communications technology (NFC) to their devices, allowing the iPhone 5 to finally function as an e-wallet. Big whup. Everyone’s already had that idea, even Google.
Here’s what will turn the mind-numbing technology into something that will blow your mind: NFC in the iPhone 5 will finally allow Apple to go live with their ambitious NFC-backed remote computing strategy which will totally blur the line between iOS devices and Macs.
As rumored, Google just announced their new service, Google Wallet… and unless Apple has some surprises up its sleeves when it comes to NFC, it looks likely that the search giant will have a year’s head start on Cupertino when it comes to the lucrative and burgeoning market of mobile payments.
