...And why merchants should offer it now to increase their own revenue.
Apple Pay - Apple's new mobile payment service - lets iPhone 6, 6 Plus, and Apple Watch owners make payments using NFC with their devices. It allows these Apple devices to wirelessly communicate with the Point of Sale terminal or Pin Pad at checkout with a dedicated chip that stores your encrypted payment information. For IPhone 6 and 6+, your identity and security is confirmed by holding your fingerprint to the phone, or the presence of your skin detected beneath the Apple Watch.
Here are three reasons I believe Apple Pay will take off in the coming months, and why merchants should consider adding an Apple Pay POS terminal to increase their own profits:
- SATURATION: In the U.S., the iPhone is the No. 1 selling smartphone device, with 41% market share, compared to 27% for runner up Samsung and its Galaxy line. With 1/3rd of Smartphone users under its belt, merchants offering Apple Pay are offering a large percentage of their customers another reason to continue to shop with them.
Critics have claimed that the iPhone is losing popularity among the younger generation. However, "Apple's iPhone continues to grow in popularity with U.S. teenagers," says Piper Jaffray analyst Gene Munster's latest semiannual teen survey, which asked approximately 7,200 teens with an average age of 16 years about their device usage habits and future buying plans. "67 percent of surveyed teens owned an iPhone, compared to 61 percent in the Spring survey, and 73 percent of teens expect their next phone to be an iPhone."
Making Apple Pay available will not only give merchants the edge now, but will set them up for future spenders.
- SIMPLICITY... or is it MARKETING?: Without a doubt, a big key to Apple's success has been the relative uniformity of its operating systems and use across multiple products. Or at least that is what Apple tells us. And while some people have a lot of different names for Apple, nobody can deny their role as Marketing Powerhouse.
Sure, the ease of use is a key factor for not only retention of Apple's clients and brand loyalty, people using Apple products (and we know there are a lot of them) have found it simple to use no matter what device they are using at the moment, be it the iPhone, iPad, etc. And while critics complain about iOS and tout Android OS as easier to use, Apple's marketing machine will never let you doubt how simple it is to use.
- SECURITY: The fact that use of ApplePay will require a user to use their fingerprint to complete a transaction will give users the sense of ultimate security. Although history has shown us that nothing these days is really, truly 100% secure. However, Apple's marketing and design teams have done a great job at putting the right pieces in place to create this sense of security.
The service keeps customer payment information private from the retailer, and creates a dynamic security code generated for each transaction. Apple added that they would not track usage, which would stay between the customers, the vendors, and the banks. Users can also remotely halt the service on a lost phone via the Find My iPhone service. On the Apple watch, the detection of a user's skin beneath the watch confirms the wearer is in fact the owner of the watch, through a PIN code entered when the watch is first put on.
Want to Learn More about Apple Pay for your Business?
OK, so you are ready to jump on the Apple Pay bandwagon. Or you still have questions or concerns? We are ready to answer your questions, or set you up with the ability to start offering Apple Pay at checkout. Fill out our Apple Pay Interest form and we will get you the information you need to get started on the next big thing. As it has been said, Apple has made us need things we did not even know we wanted!