10 Things You Need to Know About Apple Pay
02 Oct 2015
It’s over a year now since Apple CEO Tim Cook announced the launch of Apple Pay. Although we are yet to adopt in Australia, it’s not far away. To get you up to speed, here are the ten things you need to know about Apple Pay.
- 1. The Apple Pay system allows customers to pay with their iPhone (6 or 6 Plus), or Apple Watch instead of a credit/debit card upon checkout. Apple Pay also works online across a number of retailers on iPad AIR 2 and the IPad mini
- 2. Apple Pay uses tokenisation which means it doesn’t store credit card details on the device, it stores tokens that are associated with them, so if the device is stolen it cannot be used for paymenst making it much more secure than traditional methods .
- 3. Australia has one of the highest penetrations for contactless payments, making it a prime market for Apple Pay.
- 4. The steps required for online payments are reduced to a simple finger press, making this a true game changer for retail.
- 5. Merchants that accept Apple Pay claim conversion rates that are 2-3 times higher.
- 6. Apple Pay will automatically pay using the customers’ primary credit or debit card, although customers can also select other available credit or debit cards at the point of checkout.
- 7. Apple Pay launched in the US in October 2014, and in the UK July 2015.
- 8. The Australian launch relies on the banks and card companies working together to establish extra fields in their payment systems to accept and recognise tokens rather than account numbers.
- 9. One issue delaying the arrival of Apple Pay is the lengthy negotiations on Apple’s cut of the fees – as some of the big banks are not willing to give Apple a slice of the $2 billion a year they earn in interchange fees.
- 10. Consumers like it; according to Panera Bread in the US over 30% of transactions have now been made via Apple Pay and general consumer sentiment is positive overall.
Whatever happens, it’s safe to say digital wallets and mobile payments are here to stay.
Recent research released from Visa suggests 43% of Australians have bought products or services using a smartphone, and PayPal forecasts that globally mobile spending will increase 42% each year until 2016.[tweetthis twitter_handles=”@bantermm”]Recent research released from Visa suggests 43% of Australians have bought products or services using a smartphone[/tweetthis]