Explaining Apple Pay: Pros, Cons

Apple Pay is a new payment service announced by Apple on Sept. 9, with a launch date of Oct. 20. The service works with Apple iPhone 6 telephones, using near field communication (NFC) technology. For users of iPhone 5, 5c, and 5s, the payment service will operate if they purchase an Apple Watch, which is scheduled for launch in 2015.

Apple Pay functions in physical shops. It allows shoppers to pay with their phones if the merchant has installed the NFC terminals. Shoppers will need to store their credit card info in Apple Passbook by syncing the cards in the iTunes service or simply by taking an image of their credit card and keeping it in Passbook.

Apple Pay utilizes NFC technology, for bodily retailers. Picture: Apple.

Apple Pay also works with mobile apps on iOS. Leading apps — such as Target, Uber, Panera Bread, and Groupon — have already signed up to support this service.

Currently Apple has no plans to encourage shopping on sites.

Apple Pay supports all major credit cards. Apple has also worked with big big banks to make the service attractive and protected before the launching. Apple plans to launch this service with 220,000 retailers, so there’ll be many places for shoppers to test out the service.

Apple Pay comes with several advantages.

Apple Pay: Experts

  • Simpler payments. Once shoppers have their credit card stored in the iPhone, they need only hold the phone near an NFC reader, approve the transaction by using their fingerprint using iPhone’s Touch ID, and the payment is processed in a few seconds. The method is simpler than the conventional credit card swiping procedure, which typically includes (a) swiping a card and then picking debit or credit, (b) providing another identification, and (c) affixing a signature.
  • Secure. Since a credit card doesn’t have to be present, there is less likelihood of a stolen number. Moreover, Apple doesn’t use the credit card number for processing the payment but utilizes a token known as the”device account number” to process the transaction, which further reduces the odds of the credit card details getting stolen. Apple Pay is an implementation of the EMVCo specification that’s considered by many industry experts as the most secure payment mechanism.
  • Greater solitude. Apple won’t monitor shopper transactions and save the data. This provides more privacy. Additionally, using device account numbers versus the credit card makes the transaction much more personal with the retailers since they don’t observe the shopper’s name and other details, like the billing address.
  • Reduced risk. Large retailers such as Target and Home Depot have lately experienced credit card breaches. Apple Pay removes that by preventing the use of the card details as part of this transaction. With Apple Pay, the apparatus account number, together with a transaction-specific lively security code, is used to process the payment. So the credit or debit card numbers are not shared with Apple with retailers or sent with the payment.
  • Better experience. Apple is notorious for creating superlative user encounters. Apple Pay is no exception. According to published reports and accessible videos, the service appears to be simple to use. The service automatically selects the default option from Passbook for payments, which may easily be overridden using a swipe.
  • No Additional fees for retailers. Apple isn’t charging shoppers or retailers fees for this new service. But it does take some of current credit card transaction fees. That is why Apple spent the previous two years working with the major credit card companies and banks to iron out all of the nuances of the service.
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Apple Pay: Disadvantages

  • Adoption. Getting retailers and shoppers to utilize the service could be difficult, as it requires shoppers to have an iPhone retailers and 6 to encourage NFC terminals.
  • No online shopping support. You can use Apple Pay to purchase apps and buy different things within apps but the support doesn’t support online shopping. Since a large proportion of iPhone 6 users would also probably shop online, the support has a enormous limit, unless Apple is attempting to highlight mobile shopping — or unless it provides online shopping in the not too distant future.
  • Stability. Apple Pay seems great now; but can it scale when countless shoppers begin using it? Can an Apply Pay transaction process as rapidly in practice as it’s in the demos? If not, it is going to impact adoption. Shoppers wouldn’t probably wait until the iPhone is trying to confirm the transaction.
  • Higher fees. Currently the service has been launched with no additional fees. But will this last? Some observers wonder if credit card companies will stop sharing the charges together with Apple, which might lead to higher fees for retailers, which might hurt adoption.

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