Apple Pay last year among much fan fare and great support from the credit card industry. Apple Pay partnered with a number of banking institutions which issued credit cards. It was supported by the credit card because it solved the most critical technology issue and infrastructure problems which were being faced by the credit card industry. Apple Pay in other hand offered a new avenue for growth for the credit card industry.
Apple Pay is like a Trojan horse for credit card industry
Apple Pay is not yet a popular name in the field of transaction but it is growing at a steady pace, which ensures that it will achieve wider popularity within few short years. Apple has recently announced a deal with China’s Union Pay, which will allow it to operate nationwide in China.
The credit card industry should remain vary of the Apple Pay as it a Trojan horse for them. Once Apple has successfully established its platform on a larger level across the globe then it wouldn’t need the help of banks and credit cards at all. Apple will be able to take advantage of another great technology named blockchain, which will acts an alternative payment option. Bockchain happens to be core technology behind popular Bitcoin and it can function as a transparent ledger of the transactions.
Apple advantage over credit card industry
One of the biggest advantages, which Apple has over the credit card industry, is that it is supported by a grand magnitude of iPhone loyalists. iPhone has a cult-like following all across the globe which brings a great opportunity for the Apple to push the Apple Pay to its followers with each software update or new product offering. But it wouldn’t be easier for the Apple to change the habit of the people but with time we will see a wide number of users actively adopting the Apple Pay platform for making day-to-day transactions than the credit cards.
Apple is also financially equipped to push the usage of Apple Pay by offering credits on purchasing of an iPhone along with exclusive discounts on iTunes store. Even the rebates for credit card fees can also be used for buying the music on the iTunes, iPhone accessories or movies on Apple TV. Currently there aren’t enough outlets throughout the globe, which accepts Apple Pay, but with time it is expected to gain huge momentum.
Credit card companies failed to popularize the use of chip and pin technology
Credit card companies simply failed to force the merchants to install a new chip and pin technology. It should be noted that merchants had complained a lot the time taken by the credit cards in reading card cards. This not just annoys the customers but also costs money in lost transactions. Even this system doesn’t have a uniform guideline for usage as in Europe chip-and-pin transactions require both the chip in the card and a pass code while in US terminals only need the chip.