Apple Inc (AAPL) Revolutionizes Payment by Introducing Apple Pay

While introducing the iPhone 6 and iPhone 6 Plus, Apple Inc (NASDAQ:AAPL) also took the opportunity to introduce a new method of making payment, namely one that entails tapping a button on the mobile device rather than clicking the mouse on a button on the computer. Christened as ApplePay, it is facilitated by a technology named NFC, meaning near-field communication which is effective over short ranges and is wireless in nature.

One of the reasons as to why this introduction was expected from Apple Inc (NASDAQ:AAPL) is because the company has been expressing its intention to venture into the arena of mobile payments over the last few months. Its first attempt pertained to creating iTunes account for which it recorded 800 million users in the month of April, 2014. This attempt is described as a digital wallet and is an outcome of partnership with Visa and American Express with Master Card included as a part of the deal too.

Apple (AAPL)

Apple Inc (NASDAQ:AAPL)’s CEO Tim Cook took pride in announcing –

“Today we are launching the biggest advancement in the history of iPhones. Apple Pay will forever change the way we pay for things.”

The idea is to enable users to make payment at shops or restaurants through their smartphone apps so that the entire process is lot simpler and definitely more secure as compared to using credit cards and debit cards. So this emerges as an alternative option to PayPal or Google Wallet in an era when payments through mobile are expected to grow exponentially.

As far safety and security of conducting transactions is concerned, Apple Inc (NASDAQ:AAPL) has provided assurance by claiming that all information pertaining to payment will be stored on a secure chip and will require a one-time security code for being activated. Back-up will be provided through a ‘Find My iPhone’ service wherein in the event of the phone getting lost or stolen, the service will delete all sensitive information and it won’t be necessary to cancel the card.

“A cashier doesn’t see your name, credit card number or security code when you pay with Apple Pay. Apple won’t track people’s financial data. Apple doesn’t know what you bought, where you bought it or how much you paid. That transaction is between you, your merchant and your bank.”

Reception of this system has been mixed with MNCs’ like McDonald’s, Starbucks and Wal-Mart maintaining a distance while Target taking part only through its app.

This article has been written by Vinita Basu.

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