14 Jun How Apple Pay Wants to Change the Payments Industry?
Apple, in recent years, has developed a reputation as being a technology giant and consumer friendly company. In developing new devices and services, they strive to innovate and compete in one of the world’s most difficult economic categories, and demand is high. Their approach to advancing credit card processing is no different.
Consumers are accustomed to paying for their purchases with their credit cards, whether it Visa, MasterCard, etc. PayPal started working with businesses by allowing merchant accounts to be accessed via e-mail address, a fast and effective way to complete a purchase through the internet. Apple is taking the check-out line to new levels by introducing Apple Pay, a revolutionary app that allows consumers to use their smart phones to pay at the register. It works with existing credit lines (so far with American Express), and completes purchases with the touch of a button. With Apple Pay, shoppers no longer have to swipe their credit cards, or worry about high levels of identity theft, as Apple Pay secures identity based on the account holders finger print. This feature ensures personal security by eliminating the need to carry a physical credit card, and instead of a signature, a fingerprint is 100% unique to the individual.
The idea behind mobile payments working effectively is relatively simple. Most modern day smart phones contain technology known as “near field communication,” or NFC. This is the technology that allows apps like Apple Pay to work. NFC is a proximity based feature that allows financial information to flow between two mobile devices that are close together.
From a business owner’s standpoint, this new wave of credit card processing is fast and cost effective. By adding Apple Pay to the traditional point of sale system, businesses will be able to expand their consumer base and safely process transactions more effectively.
The market for mobile device payments is expanding, and economists are predicting this trend to grow steadily in the near future, allowing for the consumer to have a faster and safer shopping experience than in past years with traditional forms of credit card processing.