Apple pay to push digital wallet revolution

According to foreign media reports, Apple October 20 launched the mobile payment system Apple Pay, using Apple iOS device fingerprint sensor to complete the identity authentication function. Less than 2 months after the launch, Apple pay was supported by credit cards that accounted for 90% of the U.S. credit card transactions. Apple Pay quickly received credit card company support, indicating that it will soon be compatible with all credit cards in the United States.

More importantly, with the current momentum of development, Apple pay officially opened a new era of digital wallet curtain. Bank cards may soon be the past.

Digital wallet Revolution

The first attempt to make NFC (near-distance communication) mobile payments a reality is Google, not Apple. By using Google Wallet (Google Wallet) on NFC-enabled Android phones, Android users can store credit card information in their Google Wallet and use their phones as mobile payment devices.

But it will be apple that has been "remembered" for the mass popularity of digital wallets in the United States. With touch IDs to improve the security of NFC mobile payment systems and leverage their vast and loyal user base, Apple pay will be the first mobile payment service to appeal to all credit card companies.

Apple's pay will have an unprecedented impact on the payment industry. "Although Apple Pay is a fairly small part of the trading volume, the support of more credit card companies suggests that Apple Pay has a far greater appeal than its rivals," The New York Times local time said in a Monday article. ”

But the future of digital wallets is unlikely to be centered on Apple. Apple pay the development of Google's wallet. Media reports say Samsung is developing a mobile payment service similar to Apple's pay. In addition, Apple has limited its market potential by supporting only its own devices, pay.

Apple also faces major hurdles

But persuading retailers to be optimistic about Apple Pay like credit-card companies is not easy, with retail-industry groups merchant Customer Exchange member companies, including Wal-Mart, Best Buy and Target, They are still focused on developing their own mobile payment application CurrentC and refusing to accept Apple Pay. A major difference for CurrentC is that it appears to be aimed at weakening the impact of credit card companies and reducing the fees paid by Apple Pay for no such purpose.

Industry insiders believe that the credit card companies will continue to play an important role in the payment area for quite some time to come. If so, the future U.S. payments industry will still rely on credit cards, but credit cards will be digitized. Retailers – even merchant Customer Exchange member companies – will forgo exclusivity and recognise the need for consumers to use their own digital wallets.

Of course, another big hurdle for retailers to accept Apple Pay is the need to buy a cash register that supports NFC. Some retailers may have a wait-and-see attitude to support Apple Pay.

But it is worth noting that Apple's early appeal to retailers was encouraging. Many retailers, including Walgreen, McDonald's, Disney, Whole Foods and Staples, support Apple Pay.

The New York Times reported that Apple pay's early popularity was a key catalyst for Forrester, a market-research firm, expected to pay 142 billion dollars (about 869.1 billion yuan) in the 2019 mobile payment deal.

The digital wallet revolution is coming to us. Given Apple's huge first-mover advantage, the company will be the main beneficiary of the mobile payment revolution.