Contactless is not a new concept, but it has only recently gained traction in the public’s eye. Apple Pay, a NFC (Near Field Communication) based wireless way to easily make in-store and now, online payments.
This easy payment option is done by using the iPhone 6 by Apple Inc. (NASDAQ:AAPL) as well as the iPhone 6 Plus, iPad mini 3 and the iPad Air 2. The Apple Watch will soon come on board as a payment device also.
The great news, this holiday season, is that the Apple Pay can be used on many online purchases. Some of the stores that support this internet payment method include the Disney Store, Target and of course the Apple Store. Other retailers participating include: MLB.com, Panera, Starbucks, Sephora, Groupon and Open Table.
Adobe Digital Index believes that digital wallets will soon become commonplace and the default method of payment for many Apple Inc. (NASDAQ:AAPL) device users.
The latest published analysis said that the conversion rate of online purchases is higher when internet based stores are willing to accept digital wallets as an alternative payment method. More specifically, it is said that customers are 10% more likely to complete an online transaction if digital wallets are offered as a payment alternative.
According to Tamara Gaffney, the primary analyst at ADI (Adobe Digital Index), she believes that many retailers are excited about Apple Pay and its implications on the total shopping experience. In store adoption of this new technology is slow because it does require that new updated systems need to be installed. With this in mind, it is obvious that the big win with Apple Pay will be with online retailers.
By using Passbook, users can now add debt and credit cards. This can be done either through an iTunes account or with the iPhone iSight camera that will capture the data from the card. Information from the card can also be manually entered.
American Express, MasterCard and Visa will work closely with Apple Pay as well as financial institutions like Chase, Wells Fargo and Bank of America.
Security is always a concern, but one of the unique features of the Apple Pay is that all financial data is stored directly on the device. It is never seen by the vendor or by Apple Inc. (NASDAQ:AAPL). Instead of having the credit card number transmitted, a unique account number as well as a security code is transmitted for your privacy. In addition, the Touch Identification will be in place that will prevent purchases from going through unless the user places their fingertip on the sensor.
For added security, if the mobile device is lost or stolen, Find My IPhone service, a specialized feature of Apple Inc. (NASDAQ:AAPL) will locate the device and disable the Apple Pay feature.
Apple Inc. (NASDAQ:AAPL) opened the stock market today at 113.94 and at 9:57 a.m. Eastern Daylight Time, it is holding at 114.50 per share. The 52 week outlook ranges from 70.51 to 117.28 with a mkt cap of 671.76B. There is a 62% institutional ownership.