Apple Pay needs to prove it’s actually better than a physical wallet

This week, Apple announced the expansion of mobile payments to more countries. But to really grow, Apple Pay needs to do more than just replace credit cards.

Subscribe Friday is our attempt to put news into context. Once a week, we’ll call out a recent headline, provide updates and explain why it’s important.On September 9, 2014, Tim Cook stood in front of a big screen showing a classic bill wallet show after him, declared: “Our vision is to replace this.” He continued to introduce a new mobile payment system, Apple Pay. Two years later this week, the company announced that Apple Pay will be available in Japan, New Zealand and Russia soon in Apple’s latest move to make it the way we dominate purchases. But iPhone fanatics in the US now have almost two years to try out the mobile payment app and they still have a lot of access to their wallets.

Tim Cook revealed Apple Pay in 2014. (Bloomberg / Getty Images) Only six percent of people with a compatible iPhone use Apple Pay every month, according to the for a March report by Bloomberg Business citing new data from Crone Consulting, a research firm. And in one learn Of the 4,000 iPhone users announced by Pymnts, a news site about mobile payments, in June, a third of those who tried Apple Pay once could hardly be used again. Reason? It’s not any easier than drawing out a credit card.

“People who use Apple Pay only once shows that the technology is not delivering the value users were hoping for,” said Emma Slade, mobile payments researcher at Swansea University’s School of Management.

That’s the Apple Pay challenge: actually better than a physical wallet. To be successful in the US and to expand its international base, Apple needs to scrutinize past payments. Not enough to create another way of making money – mobile payment products still have to make our lives better and easier, in significantly more innovative ways than it has been.

Apple discloses its payment application two years ago today, and it came out six weeks later. At that time, the company had registered 220,000 retail locations. Without cooperative sellers, early adopters of Apple Pay would have nowhere to shop, so Apple was rushing to sign up for companies. Today, it has three million locked sellers. But the implementation is not perfect.

Consumers gripped of the terminals sometimes not working, as well as security issues with how banks loosely handle new credit cards added through Apple Pay, leading to fraudulent purchases. CVS and Rite Aid canceled Apple Pay support just days after launch. And Walmart, the nation’s largest retailer, declined (and still refused) to accept Apple’s apps.

(Bloomberg / Getty Images) Meanwhile, Google Wallet has been struggling for a few years. Google needs to work with banks for Wallet to work. But banks are not excited about Google’s business model, which requires financial institutions to share customer shopping data, PC magazine reports.

Many mobile service providers even decide to block the service in an attempt to promote their own mobile payment options. Without banks and service providers, Wallet users can hardly find places that accept payment.

Last year, Google dropped the project and replaced it with Android Pay, an app similar to Apple Pay. (Google Wallet still exists, but is now focused on peer-to-peer payments.) Google so far did not create many partnerships Like Apple, you can’t use it in many places. In an effort to catch up, earlier this week, Android Pay announced that cooperated with Chase Bank like Uber, is 50% discount for 10 trips for customers paying with Android Pay.

The most innovative competitor, however, is five years old Samsung Pay. It only works on Samsung Galaxy phones, but it does have one big advantage: it is theoretically compatible with all magnetic card readers right out of the box, so there’s no need to worry about homes. participating retail.

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