Apple Pay [Apple]
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Apple's mobile payments platform, Apple Pay, is ten years old. Over the past decade, it has become an invaluable tool for shoppers around the world.
Apple initially launched Apple Pay on October 20, launching the service only in the United States. At the time, it was an interesting addition to the iPhone, giving consumers the ability to pay in-store without using a physical card, but it was just the beginning.
As Apple approached its 10-year anniversary, it marked the occasion by giving Jennifer Bailey, vice president of Apple Pay and Apple Wallet, the opportunity to look back on the decade. In a post to Newsroom, Bailey suggests that Apple “saw a unique opportunity to use Apple hardware and software to make a meaningful impact on our customers’ financial well-being and lives.”
The dream was to use iPhone to seamlessly pay for all transactions, both in person and online, while keeping your financial data secure and private. Of course, it took a lot of work to achieve that dream.
“Hundreds of millions of consumers in 78 markets” use Apple Pay, Bailey writes. It’s also used on millions of websites and apps, in tens of millions of stores worldwide, and supported by more than 11,000 banking and network partners.
Consumers love it
According to a survey commissioned by Apple that asked why consumers love Apple Pay, ease of use was the top result, at 90%, followed by privacy and security, at 88% and 87%, respectively. About 85% of U.S. consumers are “very satisfied or extremely satisfied” with Apple Pay, and 98% are likely to recommend it to others.
Bailey adds that Apple hears from customers every day about how Apple Pay enriches their lives.
As one example of how this has helped people, Bailey cites the launch of Apple Pay for public transportation in Tokyo. The vice president saw consumers eagerly tapping their iPhones to quickly pay and pass through turnstiles on one of the world’s busiest transportation networks.
She then goes on to discuss how customers feel “safe and trust that their financial transactions are private.” With its tools, Apple has helped banks achieve “industry-low fraud rates” for Apple Pay transactions.
“Our customers trust that when they use Apple Pay anywhere, they can rest assured that their payments are secure.”
Not all plain sailing
While it has been a revolution for consumers, the growth of Apple Pay has not been without its challenges.
Since its introduction, banks and financial institutions have complained about having to pay extra fees. They also objected to the lack of the same access to NFC hardware as on Android and other platforms.
This inevitably led to regulatory intervention and attempts to smooth things over. In Australia, for example, the government took steps to tighten regulation of Apple Pay to the level of credit card companies, even though it is not actually a credit card company in its own right.
Meanwhile, there were various efforts around the world to force Apple to provide access to NFC. Apple eventually relented and opened the technology up to competitors.
The Future of Apple Pay
The next set of changes to Apple Pay will bring more elements of typical store transactions into the mobile payments space. Bailey said this could include rewards redemption options, much like points cards for retailers, except it would be one cohesive system instead of two.
Consumers in the US can already redeem rewards with select Discover credit cards when using them with Apple Pay online and in apps.
Installment loans from Apple Pay issuers and lenders will also become a bigger deal, offered at checkout online and in apps. This has already been seen with Affirm installment loans in the US and Monzo Flex in the UK with iOS 18.
There are more to come, such as Klarna’s flexible payment options launching in the US and UK on Thursday. More installment options are also on the way for different countries and issuers.
Apple is also looking to make a bigger push to replace the physical wallet entirely with its own Wallet app. From payments to event tickets, government IDs and keys, Apple wants the iPhone to be the gateway to a person’s life.
“The last decade has been an incredible journey, and we’re thrilled that so many people around the world are enjoying the experiences Apple Pay and Apple Wallet provide,” concludes Bailey. “I can’t wait to see what the next 10 years bring.”
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