How well is Apple Inc (NASDAQ:AAPL)’s Apple Pay going to be accepted is something that remains to be seen over the coming months. As of now the scenario is that of mixed reactions wherein a blogger narrated an incident wherein at Starbucks, his decision to utilize Apple Pay was confused by the employee behind the counter as apple pie and hence was politely declined. That said, there are a number of corporate entities who stand to benefit from Apple Pay and being cognizant of the names could work to the owner’s advantage.
Probably the most vocal take on which company will benefit most from Apple Pay was discussed by Jim Cramer on CNBC wherein he also discussed the EMV system in great depth. Having equaled it to a revolution, Cramer went on to name Visa, MasterCard and NXP Semiconductors as being some of the top beneficiaries of Apple Inc (NASDAQ:AAPL)’s new service. However, he also emphasized that there was one entity which stood to gain more than the others and it was that of VeriFone Systems Inc (NYSE:PAY), undoubtedly a leading name in context of point-of-sales systems.
According to Cramer –
“Nearly 70 million Apple Pay enabled devices could ship over the next two years that twice the number of American Express cards currently in circulation within United States. If a retailer wants to accept Apple Pay, it needs a point of sale terminal that is compatible with Near Field Communication technology used by Apple. That’s another big reason for merchandise to upgrade their payment system which again means more business for VeriFone Systems Inc. (NYSE:PAY).”
This in turn is likely to propel VeriFone Systems Inc (NYSE:PAY)’s stocks upward and the only competitor in this arena is PayPal who could get the better of Apple Inc (NASDAQ:AAPL)’s strategy by acquiring VeriFone Systems Inc (NYSE:PAY) for itself.
The fact that Apple Pay is likely to be compatible with EMV system which will be rolled out in 2015 is sure to act in its favor. Till then, hopefully the glitches will have been sorted out and Apple Inc (NASDAQ:AAPL) will have tasted success and made a mark in this niche too.
This article has been written by Vinita Basu.