Apple pay temporarily only provides payment function, competitive slightly thin

The Forbes website wrote a review of the strengths and weaknesses of Apple's pay. The biggest advantage Apple has, the article argues, is that it has hundreds of millions of iphone users, all of which are likely to become potential users of Apple's pay. But Apple's mobile payment technology has no particular innovation, and is limited to payment links in user interactions. Apple pay cannot help retailers build and maintain value-added user relationships, such as moving loyalty programs. It only provides the payment function temporarily, the competitiveness is slightly thin, only then develops more value-added function, can attract more retailers ' eyeball.

The following are the main contents of the article:

Almost every company that has direct payments with consumers will likely use Apple's mobile payment system in the future, and it would be a good reason to reject Apple's new Pay. But using Apple Pay, as with other Third-party mobile wallets, has a bad consequence: to give up the direct relationship with the user.

The function of mobile wallet

As with ordinary wallets, mobile wallets can be used to track bank cards, membership cards, coupons, and so on. It can be associated with various payment channels and use these associated accounts to purchase goods. Users will exchange information between the retailer who accepts the mobile payment system and the mobile device of the user while the transfer is made.

Google's mobile wallet products have been launched for several years, but still not widely recognized. Amazon has developed new features that allow users to use the Amazon account as a digital wallet for each website. Softcard This mobile wallet technology has been co-sponsored by wireless carriers such as Verizon, T and T. PayPal also has mobile wallet applications, but few users use them. Square has also tried to launch mobile wallet products, but has recently abandoned the mobile payment market.

Apple Pay has also attracted a lot of attention, in addition to the much-watched IPhone6, in its new launch. It allows users to use the new iphone and fingerprint verification to pay a limited number of cooperative retailers. At the same time, Apple also announced that Apple Watch also have the payment function, but need to connect with the iphone to achieve. User names and passwords are still important, but other biometric technologies will be available frequently. The key message to be identified in a mobile wallet is that the user, not the other person, is asking for payment.

It is possible that all kinds of mobile wallet products will succeed or fail in the future. People love the convenience of mobile payments and value-added services such as membership discounts, credits and coupons, which are part of the user experience. In this regard, Apple's technology is not particularly innovative, and limited to user interaction in the payment link. The biggest advantage Apple has is that it has hundreds of millions of iphone users, all of which are likely to become potential users of Apple's pay. In addition, Apple's marketing strategy is sophisticated and it is especially good at creating quality impressions when creating new products. But that's not enough.

If the retailer does not accept it, everything is in vain. It is an important challenge to persuade retailers to purchase hardware and to carry out the necessary technical matting so that the mobile payment system can be accepted by users. How to attract users is a big challenge for Apple and other mobile payers. Only the payment function is not enough to promote the use of moving products. For many important reasons, mobile payment products have not been popularized quickly. In overcoming these hurdles, Apple has been able to stride ahead of other mobile payers.

The short board of the third party wallet

The problem is that Apple wants retailers to accept payments through mobile wallets, but retailers don't get any benefit. Perhaps Apple's huge user base has shown enough support for Apple's Pay, which could force retailers to accept Apple Pay. But Google Wallet has been launched for more than three years, like Apple, hoping to win the cooperation of retailers such as McDonald's, but retailers are not buying it. Who would have thought the Google Wallet would be so embarrassing? Can Apple overcome the same difficulties?

If Apple is to be more brilliant, it must create a multilateral platform that will continue to appreciate as the number of users and cooperative retailers grows. Such a platform would promote the creation of multiple ecosystems and thus gain the advantages that other products do not have. Apple has a bigger chance of attracting users, but it needs to convince retailers to take a big step to get the platform running.

Apple is likely to succeed. After all, it has stimulated people's interest in mobile payments, which the predecessors failed to do.

Starbucks also provides an application service that users can pay with their mobile phones. This application can show the user's balance, and the user can also get immediate feedback on the available balances. It also shows the points, so that users have a better idea, so that the integration card further upgrade probably need to spend how much more. Recently updated, this application even supports the user to pay a mobile form to tip. Obviously, this experience is cool and interesting. Starbucks also has space to further develop other mobile functions, which has a value-added effect. Starbucks also get rid of the issue of membership card trouble, save money and effort.

In the third quarter of June 2014, 15% of Starbucks ' revenue came from mobile channels, said Howard Schultz, CEO of Starbucks, at the July 24, 2014 Schultz.

If Starbucks works with Apple and uses Apple Pay, users will have to jump from Starbucks apps to Apple Pay and return after paying. This will result in a bad user experience. Other retailers with their own apps will not be happy to let users go through such a cumbersome payment process.

This is the challenge Apple faces when it comes to attracting retailers. Can Apple pay create a comprehensive customer loyalty program? Starbucks apps help build a good bond with users, can Apple's products help retailers achieve the same results as Starbucks apps?

The answer now is no. Apple and many other third-party wallets do not support the creation of this multidimensional relationship. Apple Pay and other wallets can be integrated into the retailer's applications via APIs, but they stop there, and Apple Pay is unable to help the retailer's applications develop more functionality. Apple pay can only provide a collection function for retailers, as in cash or credit card transactions. When we swipe our credit card, we only provide credit card numbers, not personal information. The same is true of Apple pay.

Other options for mobile payment

There are two options for retailers to establish a multidimensional link with the user in addition to the payment relationship: to develop or use an embedded platform.

Starbucks is the best example of the first choice. Its team develops wallets by using the payment API to collaborate with credit and debit cards, allowing access to various payment schemes. Starbucks has achieved a good result, but few companies have built a research team like Starbucks to try to achieve this application. This investment is worthwhile, Starbucks based on the payment function, and gradually established a rich relationship with users.

Or you can choose paydiant such as white label mobile payment platform. They provide interface and developer tools to help retailers connect payment functionality to their existing applications while maintaining their own user relationships. Mobile intelligence providers such as Gemalto or C-sam (recently acquired by MasterCard) have also developed embedded payment platforms.

The "toolkit" provided by Paydiant can help retailers save on the complexities of creating mobile wallets, and the following are the services that the White mobile wallet platform can offer:

Create wallets and accept multiple payment options.

Allows users to identify identities by using passwords, biometrics, pins, and so on.

Offers mobile discounts, delivery, and refund management.

Fully integrated mobile loyalty programs or easily integrate existing loyalty platforms.

Log in to your wallet with existing e-commerce credentials.

Support a variety of payment technologies, such as QR Code, NFC, Bluetooth, and so on.

Tailor-made web interfaces that help enhance user loyalty.

Continuously provide safety and other updates.

Support the original payment processor, such as the initial Data, Vantiv, gift card suppliers and so on.

Support new digital vouchers and payment schemes.

Paydiant mobile apps developed for fast-food chain subway support both on-spot payments and remote trading. Accept credit cards, debit cards, and gift cards. The platform is also integrated with the subway loyalty platform so that users can accumulate points when using mobile applications for purchase. Mobile apps are directly integrated into Subway's booking platform, allowing mobile users to use the phone to buy sandwiches, pay, ask for their names on gifts, and so on. These types of value-added services are beneficial for more people to accept mobile wallets.

The MCX Alliance, which consists of Wal-Mart, Target, Best Buy, Sears and other retailers, accounts for more than 20% of the total. Earlier this year, MCX chose Paydiant to enhance its mobile wallet platform, which allows retailers affiliated to the MCX Alliance to better regulate the payment function, mobile branding and mobile customer experience. They use the platform to create a rich user experience similar to what Starbucks does. These retailers are reluctant to cede valuable data on customer purchases to Apple, Google or other companies offering wallets.

In addition to the loyalty program, many companies are also working to develop the following mobile services.

Business services: Order food in advance or order other goods, so that customers can quickly take food or merchandise after the shop, create shopping lists, select goods to be mailed, mobile commerce and shopping.

Promotions: Discounts, coupons, competitions and sweepstakes, and price adjustment according to different regions.

Advanced Data analysis: Mobile data helps retailers understand customers more deeply, which in turn facilitates the design and optimization of marketing and outreach programs.

Apple and other third-party wallet providers can mimic this platform and also support user interaction features. But that would be contrary to Apple's intention, which it claims is not interested in using retailer data and customer behavior to develop business. And retailers have long been reluctant to share customer data, and current consumer-privacy issues are continuing to heat up.

Can Apple pay succeed? Perhaps it will overtake Google's wallet. Can Apple pay have the same influence as the iphone and ipad as a trans-era innovation that revolutionized the way people use mobile phones and listen to music? At present, this issue is not worth discussing, because it only provides the payment function, the competitiveness is slightly thin, only the development of more value-added functions, in order to attract more retailers eye.