Apple Pay likely to get boost from Visa & Mastercard mandating contactless payment termina...
Apple Pay should get a major lift within the next five years from a pair of factors, according to new research, most notably contactless support demanded by credit card giants Visa and Mastercard.
By 2020, both companies will require payment terminals in many markets to offer the technology, Juniper Research noted. The lack of compatible sales terminals has been a consistent obstacle in U.S. Apple Pay adoption, such that some retailers -- like Anthropologie -- have promised support for years without delivering.
Growth may also be aided by shoppers wanting to avoid the slower speeds of chip card transactions, which are presently replacing magnetic swipes.
U.S. contactless payments at retail are forecast to rise from 2 percent this year to 34 percent by 2022, Juniper said. Globally, figures are predicted to rise from 15 percent to 53 percent, reflecting the technology's greater popularity in countries like Poland, Japan, and the U.K.
Apple is planning relatively modest expansion of Apple Pay this fall. The platform will arrive in four more countries by the end of the year, and iOS 11 will enable person-to-person money transfers, potentially biting into the revenue of companies like Square and PayPal.
By 2020, both companies will require payment terminals in many markets to offer the technology, Juniper Research noted. The lack of compatible sales terminals has been a consistent obstacle in U.S. Apple Pay adoption, such that some retailers -- like Anthropologie -- have promised support for years without delivering.
Growth may also be aided by shoppers wanting to avoid the slower speeds of chip card transactions, which are presently replacing magnetic swipes.
U.S. contactless payments at retail are forecast to rise from 2 percent this year to 34 percent by 2022, Juniper said. Globally, figures are predicted to rise from 15 percent to 53 percent, reflecting the technology's greater popularity in countries like Poland, Japan, and the U.K.
Apple is planning relatively modest expansion of Apple Pay this fall. The platform will arrive in four more countries by the end of the year, and iOS 11 will enable person-to-person money transfers, potentially biting into the revenue of companies like Square and PayPal.
Comments
Insert card, hit OK, enter PIN, done. Doesn't really take any more time than signing.
ApplePay is sheer genius, but pathetically marketed and rolled out (I mean that with respect to PoS, and online).
As an aside, does anyone else have glitches with the implementation of ApplePay online where it asks for a confirmation via the Watch? I usually give up after a half dozen tries, when it keeps saying "woking on it" (or something to that effect) for a while.
I hate the whole chip and pin idea, who's stupid idea was that. I remember when Apple Pay came out all the people from EU said it was not needed since the problem (theft) was solved with chip and pin. Every chance I get I use Apple pay it is a 2 second thing and those who have it set up correctly it does not even required a signature. I travel outside the US where Chip and Pin is required with the CC and it is a pain and take longer and a few times I almost left the card in a Gas Pump. Most stores and restaurants will make sure you do not leave the card behind since it happens all the time. One time I could not remember the PIN on the company card and you enter it wrong a few times and they lock the card on you, what royal pain.
Apple pay is the perfect example of how to fix a problem the right way verse all the other bad solutions other has come up with. Apple was the only one who could have fixed this since they control the hardware and software. The Banks trusted what they were doing.
I am still seeing lots of locations which the new POS terminals but they do not accept the chip and pin or apple pay, they have it disable, This is good think for Samsung pay which they can still emulate the mag-strip.
Take wallet out of pocket/purse.
Remove card from wallet and insert in POS device.
Stand there for 10 seconds with open wallet in hand.
Enter PIN if required. (Stores have minimums that require a PIN, so it's not always ncessary)
Stand there are another 5-10 seconds with wallet in hand and wait for annoying sound telling you you can remove the card.
Insert card in wallet and replace in pocket/purse.
You used to be able to swipe your card and put it away while waiting for the machine to get it's approval. Using this time to bag groceries or put them in the cart etc. This is why I use Apple Pay whenever possible.
Typical shop at a UK Supermarket, assistant scans your items and asks you to pay, terminal is pretty much ready for your card as soon as last item scanned, put card in card reader, wait around a second, type in pin, wait another 2-3 seconds and put card away.
Don't get how it takes 20-30 seconds in the USA, at most it is a 10 second job here and that includes taking your card out and putting it away.
Someone correct me if I am wrong, I believe the CC processing companies still use private networks, not the internet, reason being it does not allow for the man in the middle exploit. This could be part of the issue in why it takes a little longer in the US.
In Canada where I last used my chip and pin, it was about 10 second total, but this is still longer than the 2 seconds on Apple Pay, and I use my watch so I do not need to pull out my phone. Again, if the POS Terminal is set up correctly, you can put your watch up to the reader while the cashier is still process your order and it accept the Apple Pay token and waits to the transaction is complete and process it. This way I am not waiting for the cashier or holding people up waiting for payment process. I know with chip and pin and Mag-strip swipe you can not put the card through until the cashier processes the order you have to wait until they are done.
The other benefit of Apple Pay, at least with Chase CC, I get an immediate confirmation on my phone or watch saying the payment went through and for what amount.
Using Apple Pay on my phone is a one-handed operation. That's my favorite part of it.
Sure... it's not exactly difficult to remove your debit card with one hand and hold your wallet with the other... but it's using 100% more hands!
And I love efficiency!