Will Apple Pay Boost Mobile Payments in 2015?
Many experts see 2015 as the year of mobile payments. However, a study from GfK revealed that Canadians are not truly excited by the prospect of paying with their smartphones. Canada has a great ATM and debit card infrastructure, and mobile payments are seen as a solution for a problem that doesn’t really exist. Google Canada Managing Director, Sam Sebastian, goes on and says that in order for a mobile payments solution to truly disrupt the market, they need to offer something new and different. Sebastian, however, believes that the arrival of Apple Pay in Canada will be good for mobile payments and boost the profile of all payment systems. Earlier this year, MasterCard Canada also predicted that Apple Pay would normalize mobile payments within Canada. So, how does Apple Pay work exactly?
Apple claims that Apple Pay will change how we pay with breakthrough contactless payment technology and unique security features built right into the devices we carry with us every day. In addition to many other mobile payment solutions, there is no need to open an app or even wake your display thanks to the innovative Near Field Communications (NFC) antenna in the iPhone 6. To pay, you just need to hold your iPhone near the reader with your finger on Touch ID. You can also pay with the Apple Watch by just holding your watch near the reader and double clicking the button next to the Digital Crown. Apple Pay will also be built into apps, revolutionizing e-commerce. To check out, you just need to select Apple Pay and place your finger on Touch ID.
Many people fear security problems when paying with their smartphones. With Apple Pay, instead of using your name and actual credit card numbers, a unique Device Account Number is assigned, encrypted and securely stored in a dedicated chip in the iPhone, iPad and Apple watch. When you make a purchase, the Device Account Number, along with a transaction-specific dynamic security code, is used to process your payment. This means that a customer’s actual credit or debit card numbers are never shared by Apple with merchants or transmitted with payments. Apple has already integrated a theft prevention software, Find My iPhone, for when you lose your devices. You can use Find My iPhone to quickly put your device in lost mode to suspend Apple Pay, or you can wipe your device clean completely.
The most important reason why Apple Pay is set to succeed are the partnerships they’ve made with major banks and retailers. So far, Apple Pay works with most of the major credit and debit cards from top U.S. banks, which allows you to continue to get all the rewards, benefits and security of you cards.