Last week, Apple made some big announcements. First, they announced that they’re releasing two new iPhones- the iPhone 6 and the gigantic iPhone 6 Plus. Then, they announced the long-rumored Apple Watch will launch early next year. While these new devices are very exciting, perhaps the biggest announcement Apple made seems to have been lost in the shuffle: Apple Pay a program that aims to turn your iPhone into your wallet.
What is Apple Pay?
Apple Pay is a contactless payment system. Very simply, Apple Pay puts your credit card onto your phone. Theoretically, this would allow you to ditch your credit card or debit card, and just use your phone to buy products at stores. If a participating store accepts Apple Pay, you’d simply turn your phone on, scan it, and be on your way.
Haven’t I Heard this Song Before?
Yes. Apple Pay is certainly not the first player on the block in the world of smartphone payment systems. Google Wallet has been around since 2011. However, Google Wallet has never really taken off. Concerns about security and privacy have hindered Google Wallet’s growth. Even moreso, many stores just don’t accept Google Wallet limiting it’s practical use.
Will Apple Pay Succeed Where Google Wallet has Failed?
It just might. Apple has assured potential users that Apple Pay that it’s service is secure and will keep user data private. Even more importantly, Apple Pay will launch with the support of many major brands including Walgreen’s, Whole Foods, Target, and many others. When iPhone users start using Apple Pay, they will know that it will be accepted in many places in which they already buy their groceries, medication, fast food, and many other products.
Despite assurances, the biggest issue that potentially faces Apple Pay is security. Apple’s nightmare scenario would be for hackers to steal the credit card data of iPhone users from Apple Pay. News of this kind of data fraud could make Apple Pay dead on arrival. However, Apple seems to think that they are ready to tackle this and other challenges.
For more on the future of retail, learn how Amazon and Google are battling for ecommerce supremacy.