The release of Apple Inc’s iPhone 6 variations on September 9th is expected to drastically change how people shop. This is because Apple Inc. released a new payment method called Apple Pay, which is expected to substantially reduce the use of plastic cards issued by Visa Inc (NYSE:V), Mastercard Inc (NYSE:MA), American Express Company (NYSE:AXP), and other banks.
Apple Pay will save you time. All the important time spent searching for cards in the wallet and selecting which one to use at a given time can now be saved using this breakthrough as with a tap of a finger, one can effortlessly make payment.
Though this might appear to be a disadvantage to the cards issuers, it’s actually an advantage. The biggest advantage to the partnering banks and payment systems is because Apple didn’t opt for own payment system development, meaning payments will still be undertaken through these payment networks.
Visa Inc (NYSE:V), Mastercard Inc (NYSE:MA), American Express Company (NYSE:AXP) and a number of other banks came into an agreement with Apple Inc. to integrate their payment systems into the new iPhone 6. This includes making it possible for users to access specific account information and make payments in more secure and private way.
“This gives the networks and banks significant market access,” Tim Sloane, a payments analyst at research firm Marketer Advisory Group, said. “It’s a big step.”
With many customers going for this new technology, it means that many hitherto non-users of these services will start doing so because of its ease of use and enhanced security. Moreover, the need for a consumer to carry every card issued by Visa Inc (NYSE:V), Mastercard Inc (NYSE:MA), American Express Company (NYSE:AXP), and other banks won’t be necessary. This means reduced costs that initially went to the production of cards.
In fact, some people believe that Visa Inc (NYSE:V), Mastercard Inc (NYSE:MA), and American Express Company (NYSE:AXP) should encourage more customers to use the Apple Pay system in order to cut their own costs.
Thi article has been written by Victor Ochieng.