Apple Pay, the company, announced during the Apple iPhone 6 and 6 Plus launch event, is probably the big move from the Cupertino giant to conquer the mobile payments sector. The Apple Pay, which is already in use across several vendors in the US, has come to point where the retailers want to have it with them for accepting the payments. However, the other payment giants in the industry, are trying to get ahead of it. The market is still in their claws, and Apple is supposedly going to take no less than four years to have a control over the market.
Retailers are in confusion about adapting the new technologies Apple Pay is going to offer. eBay have been using PayPal services to complete its transactions, however, switching over to the Apple Pay, is probably going to bring more trouble to the company.
However, on the flip side, few of the retailers are already in favor of it as there are more number of iTunes account to process the payments via Apple Pay.
Brett Miller, Vice President of E-Commerce for Calvin Klein, embraced Apple Pay as a “game changer”.
As Miller explains, “The alternative mobile payments space – I read there are 26 different ones – I think this one is going to be the tipping point in the whole process just because there are 500 million iTunes account holders, [over 200,000 retail locations] have already signed on and how easy it to go on iTunes and buy something. I think it is going to remove a lot of friction. I think it is going to change the whole landscape of the payments processors and improve the conversion rates, particularly for retailers.”
Sears (yes, Sears is still a thing) VP of Mobile Commerce Andy Chu, took the approach that it will be Apple’s marketing muscle that will convince consumers that Apple Pay is something they’ll want to use. “We have been talking about mobile payments, mobile wallets for a long time but, the general consumer may not be aware of it,” remarked Chu. “Having Apple getting into the game and bringing a new level of marketing awareness across the consumer segment will be interesting. We will see retailers promote that they are part of Apple Pay.”
In all, the Apple Pay is becoming a dilemma for retailers, they are confused about adopting it.
apple takes 30% on an app sale. it’s going to boil down to cost for the retailers. retailers are working on very small margins. consumers are demanding lower and lower prices. apple is greedy and in contrast to what the public wants. the dollar will decide this, not a few apple-ites who already buy overpriced shoes & watches.
Apple gets 0.15% on Apple Pay payments, paid by the credit card company, not the retailer.
which the cc comp passes on to the retailer. nothing, nothing is free.
I’d like to know how Sears can claim THEY know what consumers want.
I LOVE having mobile payments as an option. It’s quick, convenient, secure, and quite frankly, it’s a fun. I honestly hate having to swipe my credit or debit cards. I’ll go out of my way to patronize stores that use NFC.