Ready for Apple Pay? Mobile Payments will Finally Reach Small Business

Mobile Payments - Apple Watch uses Apple Pay

In the seemingly endless parade of new features announced by Apple yesterday was one that should make you sit up and take note.

Apple Pay — a new way for iPhone users to pay you for goods and services without a credit card.

Apple Pay will be part of the new iPhone 6, the new Apple Watch, and other devices too as Apple rolls out iOS 8 to its existing base of users.  The iPhone 5 family of devices will support Apple Pay for online and in-app transactions, but the physical retail use will only work if you also buy the new Apple Watch.

Until today, mobile payments has been a fragmented — and mostly stalled out — attempt to make Point of Sale payments at retail shops easier, faster and safer.  Companies including Visa and Target have all tried various ways to get us to use our phones or other devices instead of a plastic credit card.  Some of the biggest collaborations, like ISIS Wallet (now called Softcard) have struggled to gain any traction at all. (Starbucks built its own payment system and seems to be having better luck.)

But Apple Pay is different.

Already 220,000 retail locations around the USA have pledged to use the Apple Pay service.  This includes Bloomingdale’s, Disney Store and Walt Disney World Resort, Duane Reade, Macy’s, McDonald’s, Sephora, Staples, Subway, Walgreens, Whole Foods Market, Target and of course Starbucks. Arguably, it will be the most widely accepted mobile payment method available.

Why is everyone jumping on this bandwagon?

Hands down, it will be the easiest & safest payment method ever. With the tap of their phone (or iWatch), Apple customers will be able to give retailers a one-time payment in any amount.  But since the physical phone acts as the intermediary, there is no credit card involved.  The retailer collects no personal information of any kind.  And Apple, which acts only as the intermediary (sending payments to Visa or other services) does not collect any data about your purchases.

Finally! A little bit of privacy and security in this big-data, hacker-space we call shopping!

So how will a small business adapt?  By gearing up with the best POS service-providers.  Shop Keep CEO Jason Rickelson has pledged that his small business Point of Sale equipment will support Apple Pay.  It seems likely that Intuit QuickBooks and other forward-thinking providers will jump on the bandwagon.

This is a rapidly evolving story, so watch for updates.  In the meantime, get ready for a massive demand for mobile payments from your customers.

Dedicated to your (mobile-payment) profits,  David

3 Comments
  1. Hey David,

    Not sure if you saw the latest on this (http://online.wsj.com/articles/apple-pay-review-easy-to-use-but-still-hard-to-find-1414514978) but it appears that the product still isn’t catching on much. Agree that mobile payment preference from customers is likely to grow, but I think the fact that it still doesn’t integrate with other devices is going to hold it back….guess well see.

    Ricky

    • Thanks Ricky:
      There is a ton of competition — and other reasons why this will never work. But Apple has a track record of overcoming some of these things… and an installed user base that is so large it’s going to be hard to ignore.
      Of course, I’m still waiting for my iPhone 6+ to be delivered. They seem to be 6 to 10 weeks out for delivery, so even if my local shops were using Applepay, I could not!! Give it a few more months. The adoption and updgrades to iPhone 6-series will take some time.
      Thanks for your comment!

  2. Hey David,

    I’m a huge apple fan, but I’d feel a little uneasy using this service from apple after the big cloud hack last year.

    Seems like there are a lot of cyber attacks happening lately anyway after Sony was hacked and the USA blocked North Korea’s internet.

    Adam

Leave a Reply


Contact Us Today

Discover the benefits of having a a team of financial experts working for your business at a fraction of the cost of staffing internally! Get a free business assessment by contacting us using the form at the right.

Or just pick up the phone...

(980)-819-0510
or (704)-614-2701

FUSE FINANCIAL PARTNERS, LLC
5550 77 Center Drive #310
Charlotte, NC 28217
United State

David, Steve and Mac are looking forward to speaking with you!