Apple Pay (NASDAQ:AAPL) ready to take off

People who bought iPhone 6 or iPhone 6 plus will be able to shop using Apple Pay (NASDAQ:AAPL) from Monday. Apple Pay (NASDAQ:AAPL) is the new wireless mobile payment program, which will enable users to make payments through iPhones. In order to get going, users will have to download a Pass book app on their phones. Users will then have to add at least one card like Visa (NYSE: V), Master card (NYSE: MA) or American Express (NYSE: AXP) from a participating bank to the Pass book app. Once the card is added to the Pass book, users can start making payments by touching the iPhone fingerprint sensor next to the cash register.

Apple Pay (NASDAQ:AAPL) might be faster and convenient, but the problem is the fact that it cannot be done everywhere. While on one hand, many retailers in America, like Macy’s (NYSE: M), Whole Foods (NASDAQ: WFM) or Walgreen (NYSE: WAG) are accepting Apple Pay (NASDAQ:AAPL), on the other hand, many major chains are still not accepting it. Stores like Wal-Mart (NYSE: WMT), Target (NASDAQ: TGT), Starbucks (NASDAQ: SBUX) are not yet accepting Apple Pay (NASDAQ:AAPL) due to lack of NFC chips (Near Field Communication). Retailers argue that the installation of NFC system for checkout is expensive and that is why they haven’t installed it yet. Many old iPhones will not be able to use Apple Pay (NASDAQ:AAPL) because they don’t have NFC chip in them either.

Startbucks is one chain that has refused to use Apple Pay (NASDAQ:AAPL) because of the NFC chip. However, it will allow its customers to refill their Starbucks card app on a phone using Apple Pay (NASDAQ:AAPL). Out of the 8 million retailers in the US, only about 220,000 will be using Apple Pay (NASDAQ:AAPL). However, many retailers are upgrading their systems to the one that can use NFC chip because it is more secure and less likely to be hacked.

Aapple (NASDAQ:AAPL) has decided to shake hands with 3 major card networks and card-issuing banks, something which Google (NASDAQ: GOOGL) lacked in their mobile wallet. When a user make a purchase using Apple Pay (NASDAQ:AAPL), the purchase takes place by paying through a credit card and there is a small fee attached to any credit card payment. The banks pay Apple (NASDAQ:AAPL) a small fee on every purchase.

Wal-Mart (NYSE: WMT), Target (NASDAQ: TGT) along with other major stores is developing an app by the name of CurrentC that will enable customers to pay through their cell phones. CurrentC uses barcodes instead of wireless NFC. Many old phone sets with no NFC chips will be able to use CurrentC. Payments will be made via debit card, gift card or through a direct connection to the bank. However, CurrentC and any other mobile wallet like Apple Pay (NASDAQ:AAPL) can’t run simultaneously.

There is still time for CurrentC to hit the market and by the time it comes out, chances are that Apple (NASDAQ:AAPL) would already have made its mark on the market.