Apple Pay
by Jacob Gilmore
by Jacob Gilmore
This last Tuesday, Apple held their infamous Worldwide Developers Conference (WWDC). The Cupertino-based company released several highly anticipated products: the iPhone 6, iPhone 6 Plus, and the iWatch. However, a new service called Apply Pay, a mobile payment software, created buzz among many Apple gurus and technology enthusiasts.
In summary, an iPhone 6 or 6 Plus user will be able to purchase products or services with a simple press of the thumb. Users will be able to check out at a register by placing their phone in front of a wireless pay terminal to allow completion of the transaction using Apple's Touch ID technology (fingerprint). In the video below, Apple CEO Tim Cook introduces Apply Pay in much greater detail on how the entire transaction process works.
The one characteristic that is revolutionary about this technology isn't that its new (Google Wallet), but that Apple raised the bar to another level of protecting consumers. According to Eddy Cue, an Apple senior Vice President, "We create a device only account number and we store it safely in the Secure Element [which encrypts payment information], and each time you pay, we use a one-time payment number along with a dynamic security code, so you no longer have the static code on the back of your plastic card." Even better, if your iPhone is stolen or lost, you can suspend all cards to prevent future fraudulent payments without canceling your card.
However, unfamiliar technology like Apple Pay can cause consumers to worry about their confidential information. Cue also said, "Security is at the core of Apple Pay...so is privacy." Apple claims they are not in the business of collecting your data. In practice, when you use Apple Pay, Apple doesn't know what you bought, where you bought it, or how much the purchase was. Their focus is putting the transaction between the merchant, you, and your bank. In comparison to similar technologies such as Google Wallet, there is a stark difference regarding data collection. Patrick Moorhead of Moor Insights & Strategy says, "Google's primary business is advertising, and there was some fear around what Google would do with that data.
However, unfamiliar technology like Apple Pay can cause consumers to worry about their confidential information. Cue also said, "Security is at the core of Apple Pay...so is privacy." Apple claims they are not in the business of collecting your data. In practice, when you use Apple Pay, Apple doesn't know what you bought, where you bought it, or how much the purchase was. Their focus is putting the transaction between the merchant, you, and your bank. In comparison to similar technologies such as Google Wallet, there is a stark difference regarding data collection. Patrick Moorhead of Moor Insights & Strategy says, "Google's primary business is advertising, and there was some fear around what Google would do with that data.
Two questions remain--are mobile payment technologies worth the convenience and the risk of a potential breach? If so, which companies will succeed at convincing the consumer(s) that their information is private, secure, and the best in the industry?
For more information on Apple Pay, click here
For more information on Google Wallet, click here
Source: Forbes
For more information on Apple Pay, click here
For more information on Google Wallet, click here
Source: Forbes
This payment system certainly sounds like it could provide a lot of convenience for many consumers. However, it seems that the success of Apple Pay is going to depend on how many businesses will install the terminals and software that is required to use the new payment system. According to the linked Wall Street Journal article, there are currently very few businesses using this technology. Many of them don't intend to start using it even after seeing the introduction of Apple Pay.
ReplyDeletehttp://online.wsj.com/articles/will-stores-warm-up-to-apple-pay-1410392952
I am very excited to get the new iPhone 6 and try this new Apple pay out. I am not worried about the potential breach at all. It is just like paying with your credit card anywhere, whether that be online or in person. There is always a chance of someone stealing your credit card number. I feel as if the Apple Pay would actually be more safe. The cashier doesn't have to ask to see your card or even your ID. That way no one has your information at all. And if someone took your iPhone with your credit card on Apple Pay they still have to have your exact finger print to even use your card. I think this Apple Pay would be WAY more convenient for me. I HATE carrying a purse, it's just so much of a hassle, and at my job we are not even a loud to bring our purses in. It would be a whole lot easier if I could just have all my credit cards and debit cards on my phone. I do wish that other stores would get this new technology because it would make my life a whole lot easier. I wouldn't have to lug a purse around a store while trying to shop and worrying about my purse to make sure no one steals it. With the new Apple Pay I would just put my phone in my pocket and not have to worry about someone stealing my purse.
ReplyDeleteIt would be worth the convenience in my mind to have a mobile pay account on my phone like this. Your bank account information can be breached by hackers from any store you shop. If they found a way a way to make payments more secure that would be awesome but, it's still hackable by someone. In my mind the hard part is trusting a company with all of this information. Is it secure and being used properly? I don't think that I would be ready to make that leap of faith until after it has been tested by others.
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