An analysis of Apple pay: Whether it can carry the banner of mobile payment

Will consumers really give up their physical wallets and turn to their new iphone to checkout? Today we are going to analyze the future of Apple's development in mobile payment. You know, this is the first time Apple has made a big effort at mobile. Although many companies have coveted this big cake before, but the mobile payment market is still tepid. Apple is set to launch its mobile payment service this month, Apple Pay, which allows consumers to make use of its iphone 6 and 6 Plus and later wearable devices, Apple Watch, to pay. Some have seen Apple's move as an important catalyst for the development of mobile payments, even more as the most important catalyst. Apple's two new handsets sold more than 10 million units in the early days of the sale, raising a large number of potential users for the digital wallet. In Tuesday, the US e-commerce giant ebay announced that its online payment platform PayPal will be stripped out in the second half of 2015 to form a separate listed company. "It is clear that the era of digital payments is coming to us," said John Donahoe, CEO of EBay, shortly after the announcement of the Donahoe. PayPal is no doubt a pioneer in mobile payments, but its lead could be hit as Apple Pay approaches. By 2018, the market for us mobile distance payments will reach $118 billion trillion, well ahead of the $3.5 billion trillion level this year, according to emarketer, a market research institute. Overcoming past hurdles Google Wallet (Google Wallet) was launched in 2011, initially with only one nexus on the Sprint network, and then some phones joined in the camp. Although Google has not given up, but Google Wallet has not been able to rise. Consumers ' use of cash and bank cards to pay has become a deep-rooted habit, and changing consumer behaviour is often a daunting task. At present, the mobile payment market appears highly fragmented. Technology companies, financial giants and some obscure start-ups are scrambling to make mobile payments mainstream. Google is still struggling to support it. by At&t, T and Verizon and other major mobile operators in 2010 to create a mobile payment tool Softcard it is not. The predecessor of Softcard was ISIS Wallet, which had to make changes because it had the same name as the extremist organization, the Islamic State (Isis). "Without the killer, no one is an absolute winner," said Dan Schulman, Dan Surman, CEO of PayPal after Anglo, an executive at American Express. Jim McCarthy, director of Visa's global innovation and strategic partner, McCarthy the prospects for a decline in mobile payments. "That's good," he says.People are competing for the wrong things in the Balkans. As far as mobile payments are concerned, security is a concern for consumers, and even if Apple's pay solution is convincing, it will not be entirely reassuring. More than 40% of active users fear that their information could be compromised if mobile payments are used, according to a survey by Kurt Salmon, the world's authoritative consumer goods consultancy, Jasmine. Phil Schiller, Apple's senior vice president for global marketing, said: "It's understandable that people have questions about new things and want to know about it." I want everyone to see what Apple has to do to meet the most pressing needs of consumers. Apple's new iphone has a built-in security element (secure Element) chip. The user's credit card information (which is not actually a real credit card number) is stored as the device account number (Device) for trading. Apple and the cooperative bank will verify that the user has the ability to pay. When a user decides to pay, the merchant sends a dynamic password that can only be traded once. The merchant does not record the user's real credit card number, nor does Apple know what the user is buying and what amount it is paying. Once the payment is completed, the user simply closes the phone close to the checkout terminal and presses the fingerprint on the phone's Touch ID to confirm the payment. Consumers can use their passbook to store credit cards and access recent consumption. If the phone is lost or stolen. With no cancellation of credit cards, users can stop all payment behavior by Find My iphone service. Accept the reality of the test Apple Pay's payment demo is perfect, but the key question is, in real life, the system can be so easy to achieve mobile payment? Bryan Yeager, a market research firm emarketer analyst Blaine Jegel, says the key is not to look at the Apple, but whether the business will buy it and whether the consumer can have a good experience in the first attempt at Apple Pay. You know, this is one of the problems that makes many mobile payment providers headache. At the moment, Apple has reached agreements with MasterCard, Visa and American Express, as well as some prominent banks, which account for more than 83% per cent of the total volume of credit card transactions in the U.S. MasterCard. In addition, retailers such as Macy's (Macy's), Bloomingdale department Store (Bloomingdale's), Disney (Disney), chain pharmacy Walgreens and office supplies retailer Staples (Staples) will also work with Apple. Apple relies on its built-in NFC (short-range wireless communication technology) to match payment terminals. The company says it expects 220,000 sales points across the United States to accept Apple's pay payment method. US Payment SolutionsWill Grelin, a provider LoopPay CEO, said that persuading tens of millions of businesses to upgrade existing payment terminals was a very difficult task. Grayling says there are more than 270 million NFC-enabled handsets in the market, but no Google or Softcard user can rely on an electronic wallet to do their daily payments. Even with the advent of the iphone 6, the situation is probably hard to change. However, the advent of new EMV credit cards may boost payment terminals, but only if businesses believe that the new technology will reduce credit-card fraud. Looppayt the user's mobile phone into an alternative credit card via an FOB (specially designed wireless magnetic field transmitter) and charge case (specially designed cell phone protection). The device will allow the iphone 5 or 5s and some specific models of Android phones to complete the phone payments for older terminals. However, this solution is not very convenient after all. Apple was dismissive of NFC before the launch of Apple Pay. But in fact, Apple has been developing the technology for some time now. In Schiller's words, NFC is chosen because it can help companies achieve the purpose of mobile payments. Even if Apple Pay can achieve extraordinary success, it will take a long time for consumers to give up their physical wallets. If you use an electronic wallet now, where should we put our driver's license?