As Apple Pay is released, how will it drive new iOS device sales?
On 14th July 2015, Apple Pay officially arrived in the United Kingdom, marking another big step in bringing UK users in line with their counterparts from across the Atlantic Ocean. Wi-Fi Calling was relatively slow to make it over here after an extended period in the USA, and it has also taken a while for Apple Pay to be activated on compatible Apple products. As of now, owners of iPhone 6, iPhone 6 Plus, iPad Air 2, iPad Mini 3 and the Apple Watch can simply add their credit or debit card to their device, and through Near Field Communication (NFC) technology, the mobile device works in the same way as contactless payment cards. After a few seconds, the payment is authorised and the transaction is complete.
As this feature was originally announced in an Apple press conference in autumn 2014, users have been steadily upgrading their devices in time for the launch. In terms of convenience, it removes the need to rifle through a crowded wallet to find the right card, and in an era when many people seem to have their phone constantly to hand, it’s clear to see how this will speed up times at the supermarket checkout. In terms of security, it also offers another added benefit over chip and PIN transactions – the authentication is carried out by taking a fingerprint scan from the shopper. To the consumer who enjoys looking a bit ‘flash’ when they reach the cashier, this new feature may well be the incentive they need to upgrade to an Apple Pay compatible device.
At the same time, there are drawbacks to the new system that may be ironed out over time. While it is possible for these transactions to be carried out without a maximum sale value, retailers will be limited to £20 (£30 from September) until they carry out an upgrade to their back office payment processing systems. In addition to this, there may be a limited audience of consumers who are willing to use the feature on the iPad Air 2 or the iPad Mini 3. A ‘phablet’ or tablet, is probably a little too large and cumbersome to pull out at the checkout, and tapping it on the card reader may look odd enough to draw a lot of unwanted attention!
