Apple has recently introduced Apple Pay to the United States. Apple Pay is a digital wallet, as well as a mobile payment service. It uses Near Field Communication (NFC) to transmit wireless between their Apple IOS devices and payment terminals.
The first point this article focused on was how with the possession of Apple Pay, consumers would be able to download their credit card information to their phones through the use of the iTunes store. By allowing consumers to not worry about always having a credit card on them but rather just their phone, the convenience of shopping is made easier. Although Apple Pay is more convenient for customers, it is hurting financial institutions. Banks are worried about their relationships with their customers as well as ensuring that their bank and card becomes/stays the most used card. Seeing as banks do not want to lose their edge to Apple, many are deciding to join the digital wallet world. Going off of this, my last point references towards the end of the article which talked about how a lot of banks are following in Apples footsteps. For example, JPMorgan Chase is actually coming out with something similar in mid 2016. It is said that Chase will be caught up to where Apple Pay is now within a mere two years. Along with Chase, Wells Fargo is also planning on coming out with Android Pay.
My first concern that I think Apple may have overlooked was customer adoption. In order for shoppers to actual consider using Apple Pay, they must purchase an iPhone 6 as well as look for retailers who support NFC terminals, which is inconvenient. My second concern with this was stability. Apple Pay sounds like a good idea, but if millions of people start to use it will Apple be able to keep up and scale? Also, how long does it take for a transaction to process? Have they worked out all the flaws or will customers be disappointed when transactions are not processing? To continue, my last concern was regarding online shopping. Yes Apple Pay allows shoppers to purchase apps as well as physical merchandise from stores with NFC terminals, but online shopping is not included with Apple Pay. I think this is going to hurt Apple since the majority of people I know currently shop mostly online. Apple should consider online shopping for the future if they want to be as successful as they potentially can be.