Apple Pay recently introduced the world to a new form of payment and security. Apple Pay uses near-field communication technology and allows users to make a payment using their smartphone and fingerprint. This technology does not send card information, though. Instead, it sends a one-time code to be used for a single transaction that can never be used again.
When Apple Pay launched last month, it had a strong backing. Bank of America, Capital One, Visa, American Express and Mastercard were some of the financial companies providing the technology to their customers. Whole Foods, Nike and McDonald's were a few of the retailers accepting Apple Pay as a form of payment.
When it first launched, there were many questions and concerns. However, Apple Pay is still in stores and banks are still supporting the technology. So, how is Apple Pay faring?
Are retailers satisfied?
Without the backing of banks and retailers, Apple Pay would be unable to succeed. So, are banks and retailers pleased with Apple Pay? It appears so.
New retailers are signing on regularly. Recently, Winn-Dixie and Staples began accepting Apple Pay. Frost Bank is also planning to offer the technology to their customers within the next year. In fact, there are more banks than you probably know that will be offering Apple Pay in the coming year.
Whole Foods was one of the original retailers to sign up for the program. They were the first national grocer to accept Apple Pay at all checkout lanes across the United States. According to Emily Wright, global media relations specialist at Whole Foods Market, Whole Foods has processed well over 150,000 Apple Pay transactions.
"Whole Foods Market shoppers who are using Apple Pay at checkout are loving the fast, convenient and secure way to pay," Wright said.
What's in the future for Apple Pay?
Tim Cook, CEO of Apple, is rumored to be meeting with Jack Ma, the founder of Alibaba. Why? For a partnership.
Apple Pay is doing well in the United States, but Apple is not a company that stays within the borders of the United States. Apple is everywhere. If Apple is able to form a relationship with Alibaba, Apple Pay would have an entryway into the Chinese economy.
The mobile payments industry in China is large and growing quickly; Apple Pay could become a major player if this meeting between Cook and Ma is successful.
Competition is coming for Apple Pay. CurrentC, a program launching soon by the Merchant Customer Exchange, aims to challenge Apple.
Are there any competitors?
Apple Pay was not the first of its kind. Others have tried to enter the mobile payments sector using NFC technology. However, Apple Pay was the first to be successful.
Now, there is a possible competitor: CurrentC. This mobile payments system was created by the Merchant Customer Exchange (MCX), a merchant-owned mobile commerce network that includes many of America's largest retailers.
Even though CurrentC hasn't officially launched, MCX is extremely opposed to Apple Pay. They believe Apple Pay is no different than a regular credit card since it allows credit card companies to charge retailers a fee for purchases. CurrentC aims to bypass credit card fees and process payments directly — a plus for retailers.
Another difference between Apple Pay and CurrentC is rewards. CurrentC will allow users to redeem exclusive offers, coupons and promotions automatically, and they can also get instant rewards and points from loyalty programs, according to the CurrentC website.
Is CurrentC affecting Apple Pay?
Apple Pay is doing extremely well, but is CurrentC affecting its success? It seems as though MCX is doing its best to stop Apple Pay even before CurrentC launches. MCX is forbidding its members from offering Apple Pay or other mobile payment options to its customers. In fact, Rite Aid and CVS briefly accepted Apple Pay but then stopped because they are members of MCX.
But it will be hard to stop Apple Pay. It was the first to hit the market, and it has proven to be successful in its short existence. Apple Pay is expanding its reach, from new retailers and banks to potential overseas partners.
Can anything stop Apple Pay from succeeding? Only time will tell, but Apple Pay seems to be a mobile payment option that isn't going anywhere any time soon.
Retailers, banks and customers alike agree that Apple Pay is a success. According to Wright, "In short, we're fans."
