An article was published this week by Payments Source Media that certainly got our attention and we wanted to share with our subscribers. There is a great deal of interest among consumers, merchants, banks and the media about Apple Pay. We have written a good majority of our articles the past few weeks about it, including one of our most popular posts, "Is Apple Pay the Future Mobile Payments Leader?"
And while we still hold that Mobile Payments are the future, and that Apple Pay is certainly a contender to be the leader in the space, the launch has not been flawless. Don't get me wrong, over a million consumers signed up for Apple's mobile wallet in the first 72 hours. But to truly rock the credit card payment world, there are some issues that need to be addressed.
Here are the 9 issues identified in the article: "9 of Apple Pay's Major Weaknesses"
- Several merchants — including Walmart, CVS and Rite Aid — have either refused to support Apple Pay or shut it off after launch. If Apple can't win back these retailers, the future of Apple Pay may be bleak. But I think retailers will ultimately yield to consumer pressure when they realize that CurrenC is not their golden ticket.
- Though Apple is aggressively talking up the security of Apple Pay, the company is still reeling from its iCloud service being linked to the leak of personal nude photos of actress Jennifer Lawrence and other celebrities.
- In Apple Pay's first days, Bank of America customers found they were double-charged for some transactions. Anyone affected may be reluctant to use Apple Pay as a replacement for their plastic cards.
- Where can consumers use Apple Pay? Especially since several merchants have opted out, it's unfortunate that Apple did not provide any built-in directory of merchants who accept its mobile wallet. MasterCard has adapted its own ATM locator app to try to fill the void.
- Some banks see Apple Pay as an opportunity, but others see Apple as a direct threat. Even those that are on board with Apple's wallet plan to deploy their own wallet apps to go beyond what Apple provides.
- Apple has enlisted over 500 banks to support Apple Pay, but there is no built-in prepaid account for consumers whose banks don't participate.
- Apple Pay is one of the few mobile wallets to launch without any built-in rewards or offers for consumers. Right now, the primary consumer incentive to use Apple Pay is its security.
- Apple Pay can make payments, but it's a one-trick pony. The same NFC tap used to pay at the point of sale can't be used for loyalty or transit fare or the many other functions that are already built into other iPhone apps.
- Another of Apple's hurdles is the appeal of the iPhone 6. Apple's newest phone has been criticized for being easily bent, for having a protruding camera, and (in its plus-sized edition) for being too big to fit into a normal pocket.
Is Apple Pay Right for You?
Solupay understands with the introduction of any new technology or service to the card payment industry that questions abound. Is this a real opportunity for merchants, or a waste of your precious time? We are ready to help guide you through the complexities of this new offering in the payment card industry.