Apple Pay isn’t the first mobile payment method but I suspect it will be the most popular.
The idea behind mobile payments is too reduce the need to carry around ‘real’ money as well as your phone. In a similar way that adding music players to mobile phones rendered MP3 players obsolete, adding cashless payment methods will eliminate the need for a wallet or purse. Apple Pay launched in the UK last week (it’s already available in the US) and despite a few teething troubles the general consensus was positive. Convincing tech savvy consumers to give Apple Pay a go is one thing, I’m not so sure we will see an avalanche of people switching to cashless payments just yet. As cashless payment systems become more visible on the high street, only then will we see a big shift towards mobile payments becoming mainstream.
Where other companies fail to convert interest into action, Apple has the upper hand. A positive brand image and trustworthy persona goes a long way to convincing customers to embrace new technology. Unsure of how the system will work (and it’s security), customers need the reassurance of a trusted brand like Apple to make the leap into the unknown. If you disregard any corporate issues, Apple has a good reputation and public image. One of the distinguishing features of Apple’s operating systems is that unlike other devices, you don’t need to purchase additional security to stay safe online. This reaffirms the public perception of Apple as a ‘safe’ brand.
Another point worth mentioning is the ridged price structure on Apple products. They don’t offer large corporations huge discounts which effectively prices independent retailers out of the market. I personally like the fact that I can buy the same product, for the same price as my local retailer- no shady, back-room deals that promote distrust.
It all adds up to consumer confidence in a brand that is asking you to trust them with your wallet and it’s why Apple Pay will succeed where others fail.