According to a Jefferies report published in early April 2015, Apple (AAPL) Pay beat eBay’s (EBAY) PayPal and Google (GOOG) in in-store mobile payments. PayPal’s strong relationship with retailers places it as a significant player in this space.
According to BRP (Boston Retail Partners), 38% and 56% of large retailers are expected to support Apple Pay by the end of 2015 and 2017, respectively. As a result, it’s the most extensively used mobile payments platform among the large retailers.
Apple Pay was launched in September 2014—along with Apple’s iPhone 6 launch, according to Anne Shields of Market realist. It uses NFC (near-field communications)—a short-range wireless technology for sending data to payment readers. NFC technology is used in Google (GOOG) Android and Microsoft (MSFT) Windows-based smartphones, Shields said.
Paying in stores or within apps has never been easier, the official Apple Pay website says.
Gone are the days of searching for your wallet. The wasted moments finding the right card. Now payments happen with a single touch.
Apple Pay will change how you make purchases with breakthrough contactless payment technology and unique security features built right into the devices you have with you every day. So you can use your iPhone, Apple Watch, or iPad to pay in a simple, secure, and private way.
“Apple Pay will use a credit card from your iTunes account or one that’s been added by using the “iSight” camera, and will allow consumers to pay for things by Touch ID,” writes Maggie McGrath of Forbes.
Apple says that each transaction will be authorized with a one-time, unique number, creating a security code that it says is more secure than the one on the back of your credit card because cashiers won’t see your name, card number or security code. The service will work with the three major payment networks — American Express, MasterCard and Visa — and Apple said that there are 220,000 merchant locations that accept these contactless payments.
Bill Gates said that Apple Pay is great idea.
“Apple Pay is a great example of how a cell phone that identifies its user in a pretty strong way lets you make a transaction that should be very, very inexpensive,” he said.
He explained: “So the fact that in any application I can buy something, that’s fantastic. The fact I don’t need a physical card anymore, I just do that transaction and you’re going to be quite sure about who it is on the other end, that is a real contribution.”
Chris Matyszczyk of CNET said “some wonder just how inconvenient credit cards are. Is it really such an imposition to take a card from a pocket or a wallet to pay? Is Apple Pay solving a problem that isn’t too much of a problem?”
Gates, though, said that Apple’s true role was in creating the market: “All the platforms, whether it’s Apple’s or Google’s or Microsoft, you’ll see this payment capability get built in. That’s built on industry standard protocols, NFC. And these companies have all participated in getting those going. Apple will help make sure it gets to critical mass for all the devices.”