The mobile payments industry has changed radically over the past few decades. Here is a brief timeline to back me up on that:
In 1983, the basis for encryption and cryptocurrencies was set.
Bitcoin was invented in 2008.
In 2011, we saw the launch of Google Wallet, while 2014 was the year of the release of Apple Pay.
2018 has been the year of the impressive growth of mobile users and the implementation of the mobile-first approach across various industries.
Unsurprisingly, with the ever-growing number of smartphone users, mobile purchases are also expected to skyrocket. It is expected that 90% of mobile customers will have made a mobile purchase by 2020.
Given these stats, we can conclude that mobile payments will keep evolving to meet the needs of tech-savvy mobile customers.
Right now, one trend stands out in this cash-free sphere and that’s the abovementioned Apple Pay. So, let’s see how it changes the way money moves.
Greater Security
Traditional payments have numerous disadvantages. For example, a customer can never know how a retailer stores and uses their sensitive credit card information. On the other hand, Apple Pay makes transactions simpler and more transparent.
Apple Pay doesn’t use customers’ credit card information during transactions. Instead, it relies on tokenization. In other words, it creates a Device Account Number for each card a consumer.
Once a customer hits “Buy with Apple Pay,” Apple will first check the merchant and ensure that they’re authorized to accept transactions via Apple Pay. Then, Apple creates a unique transaction code for each purchase and, in this way, prevents credit card data thefts.
Moreover, Apple highlights that they never store a customer credit card data on their servers, as well as that they don’t share this information with a retailer. In other words, as a merchant, you will never get in touch with your customers’ sensitive data directly.
Finally, Apple Pay also requires using fingerprint scanning and facial recognition during every monetary transaction. This is yet another way to protect customer data and money in a case of potential thefts. Precisely because of that, Apple Pay cannot be used with all Apple devices. Now, you’re probably asking yourself: “Which iPhone should I get to use Apple Pay?”
To help you with the research, Apple has listed all models compatible with Apple Pay, including iPhone X, iPhone 6, iPhone 7, and iPhone 8. You can see the full list on their site.
Simplified Monetary Transactions
Apple Pay has changed the way mobile users make monetary transactions, as it allows them to send and receive money directly from Messages. For example, they can use their credit card money with a single tap and send it just like they would send a text message. Not requiring a user to enter a bunch of personally identifiable data every time they want to send cash to their friends and family, Apple provides them with a truly frictionless user experience and makes mobile transactions faster and safer.
The same goes for a recipient. Namely, the money a user receives will be stored on their Apple Pay Cash, within their Wallet app. Most importantly, they can use and manage this cash right after receiving it. No matter if they want to make a purchase or move the money to their bank accounts, just tap of the finger is enough to take the desired action.
Smoother Online Purchases
One of the major reasons why online customers ditch a shopping cart is a complicated checkout process. Online consumers are nervous about entering their credit card data and personally identifiable information online. Precisely because of that, they require an online retailer to provide them with convenient and faster checkout experiences.
In other words, the less data a customer needs to enter during the checkout phase, the more likely they will be to complete the purchase. And, this is where Apple Pay shines.
Apple Pay doesn’t require a customer to enter any billing, shipping, or credit card information, making the checkout process a breeze. All a customer needs to do is tap the “Apple Pay” button, go through the purchase order, and confirm it with their fingerprint.
Easier In-Store Purchases
Just like with online purchases, Apple Pay is the easiest way to make purchases in stores. To pay in a physical store, you simply need to place your iPhone near a reader and hold your finger on your Touch ID. You don’t even have to unlock your phone or open the app during the purchase. Your Touch ID or Face ID will confirm it’s you. Once the payment is approved, it will be recorded in your Wallet so you can track your offline purchases effortlessly.
Back to You
Apple Pay streamlines the checkout process, making it safer, faster, and more pleasant to iPhone users. For you as a retailer, this means boosting user experience, minimizing shopping cart abandonment, and maximizing customer conversions.
