Consumers may take some time to warm up to Apple Inc. (NASDAQ:AAPL)’s Apple Pay – Retail experts

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By Thomas Copeland on September 11, 2014 Company

Apple Inc. (NASDAQ:AAPL) finally had its big day on the 9^th of September on Tuesday. Tim Cook unveiled a few of most anticipated gadgets including the new iPhone 6 and 6 Plus and smartwatch. However both these two gadgets will feature something that sparked an interest in the market; it is Apple Pay.

Apple Inc. (NASDAQ:AAPL) has assured its consumers that Apple Pay will allow them to make their payments without using any credit cards; the company promises that the payment method is completely safe and secure. That may be a big claim after its iCloud hacking incident. Those who will own iPhone 6 will be allowed to make payments without launching any apps or even turning the display on. This has been made possible due to NFC (Near Field Communication) antenna that is required when in close proximity to any contactless reader.

Apple Inc. (NASDAQ:AAPL) says that for making the process secure the company does not save the user’s credit card information including the number; this information doesn’t even get transferred to the place of purchase (store or other places).

Apple Inc. (NASDAQ:AAPL) has partnered up with three top companies for credit cards, leading banks and retailers that will bring with them 220,000 stores within the United States. These stores include Bloomingdale’s Apple Store, Nike, Disney Store, Petco, Toys “R” Us, Staples, Whole Foods, Subway, SPLS and Walgreens. Despite the arrangements made by Apple Inc. (NASDAQ:AAPL), Retail Wire Brain Trust members believe that the company will face trouble changing consumer behavior regarding payment methods.

According to Cathy Hotka, a retail consultant, the change in consumer behavior will take some time; it won’t happen at once. The first issue that will have to be dealt with is wining the consumerss trust and assuring them full safety.

David Dorf, Oracle’s Technology Strategy’s Senior Director believes that tokenization will help in making the payment method a success. He further said that recent hacking incidents have shaken the consumers’ trust who are reluctant to share their confidential information. Winning their trust will be a slow process and during this time Apple Inc. (NASDAQ:AAPL) must hope that no further hacking incidents occur.

Apple Inc. (NASDAQ:AAPL) is not the only one to introduce this method; Google Inc. (NASDAQ:GOOGL) has beaten them to the punch; however the company has not seen much success in this regard. Moreover, according to Max Goldberg, a retail consultant, Apple Inc. (NASDAQ:AAPL) is up against another mobile payment that Merchant Customer Exchange launched. It will depend on retailers whose method do they prefer.

Despite all the apprehensions a few experts believe that Apple Inc. (NASDAQ:AAPL) will once again be successful in changing its consumers’ behavior. According to SAP Global’s Tom Redd, Apply Pay will succeed just because of the brand name that supports it – Apple Inc. (NASDAQ:AAPL).

Apple Inc. (NASDAQ:AAPL) stock opened at a value of $100.41 in today’s morning session. After almost an hour into the morning session the stock dropped by -0.52% (100.47). Shares of Apple Inc. (NASDAQ:AAPL) closed at a value of $101.00 on Wednesday.