Like Google Wallet, Apple Pay is another mobile wallet. Till now, it has no such popularity. But now, it will start getting attention. Initially, very few retail stores had the new checkout terminals that were necessary to accept payments via Apple Pay.
People refuse to use it due to security reasons as they fear that the security will be worse than credit cards and some still love to swipe their cards instead of using an iPhone to make the payment. In 2015, the usage of this mobile wallet is said to be increased.
So, looking at the increase in its usage; it is predicted that its use will be enhanced within next couple of years.
Let’s look at some of the reasons that show Apple Pay is going to be more popular:
- It has gained the lead: For many, mobile wallets may sound something new. However, Apple Pay covers three quarters of the market. This was confirmed by one of the Payments advisory firm.
- It’s now time for merchants to use this mobile wallet: For those merchants who don’t accept new chip cards, 1st Oct was the deadline and now if they refuse to accept such cards then they will be liable for card frauds.
Several checkout terminals that accept new cards will now accept payments from Apple Pay. So, now there’s no option with the sellers but to get connected with such mobile wallets instead of being penalized or outfitted.
- Slow Chip Cards: Before mobile wallets were actually launched, that old debit credit cards with magnetic strips were the most preferable option. Now, people get electronic cards via email. These actually take a little longer to complete the transaction.
Here, is the turning point where mobile wallets like Apple Pay will be preferred the most as these finish the transactions quickly as compared to those magnetic strip cards.
- Payment habits have started to evolve: Several apps like as Starbucks and Ubers’ have played an important role in increasing the use of mobile wallets. Initially apple focused on fast food restaurants as well as grocery stores.
They encouraged customers to make payments via mobile and slowly this was converted into a habit.
- Small businesses are slowly adopting mobile wallets: Till now, huge large retail chains adopted Apple Pay and other wallets and now even small businesses have started using the same.
The cost of replacing terminals is the reason for small businesses switching to mobile wallets slowly. Apple focused on the same and now it has nearly 80000 small and midsized businesses every month.
- Most beneficial ones- Reward Cards: During June, it became easy for retailers to install reward cards on Apple Pay and once installed they received incentives to use wallets and now, apple launched the most important reward programme called Starbucks.
Within few couple of years, Apple Pay will become widely used. However, there are many reasons to believe that now the phones will replace physical wallets.
Which companies have partnered with Apple Pay?
Currently Apple Pay is working only in United States. Very soon it will reach to other countries such as Australia, Canada, China and Europe. Talking about the processing fees, Apple gets 15 cents on every transaction of $100.
Australian banks charge a nominal of fee of 5 cents per $100 spent and in US, it is $1 for every 100 dollars spent. This shows that Apple charges higher and this is the reason; other countries have still not adopted this new mobile wallet system.
At present, Apple Pay can be used in these stores:
- Champs Sports
- Coca Cola Vending
- Davis Food & Drug
- Dick’s Fresh Market
- Duane Reade
- Extra Mile
- Firehouse Subs
- Foot Locker
- Foot Action
- Golden State Warriors
- Harvey’s Supermarket
- Jamba Juice
- House of Hoops by Foot Lockers
- Game Stop
- Food Maxx
- Disney Store
- Office Depot
- Orlando Magic
- Peet’s Coffee
- Pep Boys
- Phoenix Suns
- Save Mart Supermarkets
- Sprouts Farmers Market
- United Supermarket
- Walt Disney world
- Whole Food Markets
- Winn Dixie
And very soon it will be available here as well:
- B & H Photo video
- Baskin Robbins
- Best Buy
- Dunkin Donuts
- Johnny Rockets
- Trader Joe’s
- White Castle
- Urban Outfitters
- Renaissance Hotels
- Regal Cinemas
And these are some of the business apps that support Apple Pay:
- Print Studio
- Levi’s Stadium
- Disney Store
- Dunkins Donuts
- B & H Photo video
- Best Buy
- Cole Haan
- Haute Look
- Hotel tonight
And many more are yet to join this chain. Slowly, it will be such that all of the apps will be compatible with Apple Pay.
During August 2015, Apple got support from more than 400 institutions in US itself. This includes small and regional banks. Soon it will also support credit cards of government employees, federal benefit cards for veterans as well as social security benefit cards.
This will be done with direct Express Payment Network as per Apple’s deal with government and days are very near when Apple Pay will serve the purpose of all cards even driving licenses.
So, now if you are one among those people who are crazy to use apple products then this serves to be an important update for you. Rest, can read this for knowledge just to know about hip and happenings of the apple world.
For more such updates, stay connected with Softqube Technologies, iPhone Apps Development in India.