Apple (NASDAQ:AAPL) Pay Wont Destroy Smaller Players

September 9th, didn’t only unveil the iPhone, iPhone Plus and the iWatch but also shed light on the rumors of Apple (NASDAQ:AAPL) introducing a new payment system, Apple (NASDAQ:AAPL) Pay as they have named it. The demonstration showed an exquisite payment experience, which was later showed in slow motion, just “in case you blinked”!

It was a proud moment for Apple (NASDAQ:AAPL) CEO Tim Cook and the founder of mobile payment. In the past years, we have seen Google Wallet, Softcard and many others like Merchant Customer Exchange etc that have either struggled to keep it going or never really made it to the launch stage. Stripe, Braintree and Square are a few names that have survived in the market.

With Apple (NASDAQ:AAPL)’s new platform for payment introduced, it can open doors for innovators to seek out new and improved opportunities as mentioned below.

1. Acceptance of Contactless payments

Contactless payment sounds a bit risky, especially to retail merchants but with Apple (NASDAQ:AAPL)’s launch it might just convince merchants to take that risk. This acceptance can create many opportunities for those willing to cater to millions.

2. Encouraging mobile shopping

In this era, consumers are turning to their mobile devices for browsing and shopping. On some levels, it is creating problems for e-commerce retailers due to shopping cart abandonment. If merchants load up on Apple (NASDAQ:AAPL) Pay eligible devices, the plus point for customers here would be not having to go through typing account numbers, billing and shipping details etc. This could eventually lead to something big if the bridge between the merchants and flawless e-commerce software platforms is reduced.

3. The payment cycle

Nowadays no one has the time to stand in payment queues. Retailers will have to create an integrated experience for the consumers where there is no waiting and payment is just a quick part of the purchase cycle. Apple Pay might be the solution.

4. Develop a more secure payment mode

Apple (NASDAQ:AAPL) Pay was developed keeping in mind how easy a security breach is now a days and how vulnerable customers become once they reveal their primary account numbers. Apple (NASDAQ:AAPL) Pay came up with the concept of payment tokens to make the payment experience more secure. This way the merchants don’t receive any account numbers hence security breach through this method isn’t possible anymore.

5. Helping Competitors

Apple (NASDAQ:AAPL) Pay is created with the joint contribution of Visa, MasterCard and AmEx. Apple (NASDAQ:AAPL) Pay is one of its kind to offer Touch ID to authorize its consumers and also has an extremely strong distribution channel.

Statistics and figures have shown just how enormous the payment market is and Apple (NASDAQ:AAPL) possible can’t cater to the entire market alone; there is enough room for others to become huge. Over 4 trillion dollars are spent on a yearly basis just in the United States alone. So either innovators hold hands with Apple (NASDAQ:AAPL) or go about their own to create a business; many opportunities are waiting to be explored in both cases.