Apple pay a lot of bank support, but its success requires more store involvement

Since the launch of Apple Pay in September and the beginning of its operation in October, it has maintained its momentum.

Today, Apple said through the New York Times that more than 10 banks are supporting their mobile wallet business, including the US Bank of Commerce and North America's TD Bank. Today, the bank-backed Apple Pay accounts for 90% of credit card payments across the United States. Apple also claims that more chain stores will accept Apple Pay, including Staples (Staples) and Windixi supermarket chains (Winn-dixie).

This will be the end of Apple Pay can become a popular acceptance of mobile phone payment applications. But to really grow, Apple still needs more, and more stores accept the way it pays by phone. These, however, remain outside the scope of the company's control.

Not these stores do not want to accept Apple Pay. In most cases, this is a no-brainer. It attracts affluent customers. It makes potential payments faster, accelerates its process, and stimulates its potential business volume. It provides better security than any credit card system today. And even now only iphone 6 owners can use Apple Pay, the number of consumers is not a problem. "There are plenty of consumers who are using it. MasterCard's chief pay officer, Ed McLaughlin, mentioned. Indeed, there is evidence that other mobile payment services, such as Google Wallet, have grown in leaps and bounds after the introduction of Apple Pay. "We know it's hard to go back to the old way after people use this new payment Method 2 to 3 times." Ed McLaughlin said.

So, what is the problem? Simply, there is not enough store to support its use-even if they want to. With Apple's own statistics, only about 220,000 stores have terminals that provide contactless payment services like Apple Pay and Google Wallet. That may sound a lot, but it's only a small part of the US's 6 million or more retail stores.

But wait-don't retailers need to update their client terminals by October to accommodate the new services of Visa,mastercard and other credit card companies? Yes, it does need to update the so-called EMV terminals that carry the chip cipher card if they want to avoid being held responsible for the theft of the card number. And most of these terminals are equipped with NFC-standard contactless payments, standards that Apple Pay and Google Wallet use.

But the fact is that most businesses cannot achieve this goal in 2015 years, or even 2016 years. These terminals cost hundreds of of dollars per person, and most small chain stores are not going to be able to pay as much money as they are under the threat of legal liability. And even the smaller chains, such as Wal-Mart, are trying to develop their own mobile payment systems that use QR codes instead of chip cipher cards, and they may not have to update their systems often in this way.

This may lead to tens of millions of of iphone 6 users-and more iphone 5s and Apple Watches users who may be able to use Apple Pay early next year-and Apple Pay is not available in most stores in the country.

Again, it's not Apple's fault. In fact, according to everyone, Apple pay has driven faster terminal innovation, and it is faster than expected. It will not be extended to most retail outlets for a few years.

So while Apple has done a good job of paying, Apple CEO Tim Cook's dream of putting his purse in his pocket at home will take a while.

JPM compiled from