In today’s society, there are many new payment methods that have radically changed the way that consumers do business. One of the most commonly used payment methods was created by one of the most prominent companies in the world – “Apple.” Almost every individual has heard of the Apple brand at one time or another in their lifetime and for good reason. It is plain and simple “Apple is successful.” In fact, as of August 2, 2018, Apple became the first American public company to surpass one trillion dollars in value, according to CNN. The reason for this cannot be easily summarized, but it certainly has to do with its innovative technology and its dedication to developing its products to meet the needs of the market. Sometimes, it even seems that Apple appears to be ahead of the market issues and is able to diagnose them before we, as consumers, even realize that there is such a need. In terms of payment methods, Apple was actively developing its very own form of payment method to stay in line with the growing need in the market. The type of payment method that was developed, is called Apple Pay.
On September 9, 2014, Apple officially announced that Apple Pay was available to the public in limited markets. Apple introduced Apple Pay as a service that would transform the way that consumers shop, pay, and interact in the consumer realm. In their announcement, Apple also pointed out that this was an easy, private, and consumer safe way to pay for goods and services. Within the first three days of Apple Pay being available, Apple announced that more than one million credit cards had been registered, which made it the largest mobile payment system in the country at that time.
Apple Pay is a payment technology that can be utilized on the iPhones and the newer wearable technologies, such as the Apple Watches. Specifically, Apple Pay can be accessed on these platforms: iPhone 6; iPhone 6 Plus and later versions; iPad Pro; iPad Air 2; or iPad Mini 3 and later versions; and even some of the new wearable technology, such as Apple Watch Series 1 or the later versions. In addition, the Apple Pay payment system supports a majority of debit and credit card providers, such as MasterCard, American Express, and Visa.
Apple Pay is utilized on almost every continent in the world and is used for various ways across every single business. However, it did not start out that way. Initially, Apple Pay was limited to specific markets and participating banks in the United States. However, in 2015, Apple initiated an international roll-out with banks in both the European and Asian markets so that users with banks all over the world could start using the Apple Pay payment methods. In 2016, Apple expanded the Apple Pay payment system to company partners, such as ExxonMobil, GrubHub, KFC, and even Starbucks. By the end of 2016, Apple Pay had become a much more normalized form of payment for industry partners to consider in their own operations. In 2017, Apple Pay expanded to additional countries in Europe, such as Sweden and Denmark. It even expanded as far east as the United Arab Emirates and the Bank of New Zealand in New Zealand. Even in this same year, Apple Pay has newly launched in Brazil, Ukraine, Norway, Poland, and Germany, to name only a few. It is clear that Apple Pay is continuing to branch out in terms of where it is used and how it is used in the consumer markets.
One of the biggest advantages of using Apple Pay is its level of security and reduced risk for potential fraud. In fact, in Apple’s announcement in 2014, Apple strategically noted that “security and privacy are at the core of Apple Pay,” and that one of Apple’s biggest concerns was reducing the potential for fraud.
Accordingly, Apple Pay went to extended efforts to ensure data security. In terms of comparison, Apple Pay security is completely different from using a typical credit or debit card. When a consumer adds his or her debit or credit card onto their Apple Pay account, the card numbers are not maintained on the actual Apple device or on the servers at the Apple headquarters. Alternatively, a unique Device Account Number is generated and securely stored within the Apple product. Every single consumer transaction will generate a unique, one-time Device Account Number for that particular transaction. This unique Device Account Number is then passed along to the seller or retailer and, as a result, the seller or retailer never has any form of direct access to the consumer’s card information. A common concern that consumers may have is “what happens” if he or she loses their iPhone or Apple Watch. Apple has already prepared for this possibility and allows its Apple Pay users to lock the device by putting it in “Lost Mode” by using the Find My iPhone app. This Lost Mode will actually lock the device and prevent anyone from picking up the device and attempting to use the content for their own personal gain.
As for customer reviews and feedback, most Apple Pay reviews emphasize the easy to use the process to pay for items with their phones quickly and securely. A majority of the expert reviewers acknowledge that this payment system operates exactly as it is advertised and with the level of security that is advertised. There are some concerns in terms of potentially improving the payment system by implementing some form of loyalty for its users. Apple Pay initially lacked the ability to store and track loyalty cards, but Apple has now provided loyalty support for a variety of its industry partners, such as Walgreens, JC Penny, and some its main restaurant providers. There also were once reports of some users with Bank of America cards having been double-charged for some transactions, but Apple Pay has fixed this glitch accordingly. It is clear that Apple Pay did not wait too long to address the concerns of its users.