Apple Pay VP reveals details about the future of contactless payments and digital keys on iPhone. Image source: Apple
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On the 10th anniversary of Apple Pay, the vice president of Apple Pay and Apple Wallet revealed new details about the future of contactless payments and digital keys on iPhone.
Apple's mobile payments service launched on October 20, 2014, and the company recently celebrated 10 years since the feature's launch. Apple Pay made it possible to make payments on your iPhone without using a physical card, but the service wasn’t an instant hit.
In an interview with The Points Guy, Jennifer Bailey, Apple’s vice president of Apple Pay and Apple Wallet, explained that the company had to educate consumers and work with merchants to try to convince them to use the service. According to Bailey, Apple “worked really hard to make sure we had a great consumer experience.”
Since its debut, when only about 3% of merchants accepted Apple Pay, that number has risen to “over 90% coverage on the acceptance side,” according to Bailey.
Today, Apple Wallet can be used to make a variety of purchases, as well as store virtual car keys, hotel room keys, and digital IDs in some states. Apple is working on new use cases for its Wallet app, and Bailey sees vehicle rentals as an area where Apple Wallet could prove useful.
“The ability to book a rental car, verify your authentication and identity… you can imagine the rental car company giving you a digital key, and that key could be used to unlock and use the car,” Bailey said.
Some hotels already support digital keys through the Apple Wallet app, while more than 30 car manufacturers support the Apple Car Key. The latter includes companies like BMW, Hyundai, and Kia, with more likely to offer it in the near future. That makes future use of the Apple Car Key in rental vehicles a reasonable possibility.
Apple also plans to expand support for digital IDs and driver’s licenses in the Apple Wallet app. As of the feature’s launch, only seven U.S. states currently support digital IDs in Apple Wallet — Arizona, California, Colorado, Georgia, Hawaii, Maryland, and Ohio.
Apple has “many more states in the works,” Bailey said. She explains that expanding digital IDs in Apple Wallet will take some time. Individual states will need to understand the company’s approach to privacy and security, just as payment processors and consumers needed time before ultimately embracing Apple Pay.
The Apple Car Key can be used to unlock certain vehicles. Image credit: Apple.
As for using Apple Pay on public transportation, Bailey says it’s “just fantastic” and that “people are just so excited about it.” The service can already be used to pay for subway and bus tickets in places where it’s accepted.
The ultimate goal of Apple Wallet is “a future where you can leave your physical wallet at home,” Bailey says. Apple has improved the core technology of its Wallet app, but there’s still a lot to do.
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