In: Ecommerce

What Apple Pay Means for Holiday Shoppers

Dec 18, 2014

As we mentioned on our latest blog post 2015 Digital Trends, mobile payments will gain popularity in the next few years. With the holiday season in full swing and as digital marketing and eCommerce specialists, we at ATAK Interactive wanted to share more information about the upcoming mobile payment trend, which will be seen more in 2015. As we are all aware Google Wallet has been around for a while but we anticipate the biggest impact being made with Apple Pay, as Apple always tends to do. The biggest difference between Apple Pay and Google Wallet is that users use Google Wallet with Google Play. So it doesn’t have any impact on POS (Point of Sales). However, with Apple Pay the game will change towards a retail environment. It adds great value on POS, which we will explore in further detail below.


Apple, as you know is a game changer and innovative. We think the mobile payment trend will shift into mobile payment solutions in 2015 with Apple’s strategies and retail partners. Starbucks recently reported 7 million mobile transactions per week in U.S. This was before Apple announced Apple Pay. The new retail ecosystem will be all about mobile payments. The demand is going to increase and the retail sector will position themselves with this new trend.


So how does this affect the holiday shopping season and what, if any, changes will this do to your spending habits? Well, for one, it’ll make things a whole lot easier and make lines move quicker. But let’s see just how easy it’ll make your life.


This is how it works
Apple Pay is pretty simple and very user friendly. When you are making a purchase from a brick and mortar, all you have to do is take out your iPhone and hold up to a wireless payment terminal at the register. The wireless terminals are exactly the same that we see every day when we make purchases with our credit cards. The advantage of Apple Pay is that you don’t have to unlock your phone or run an app like Passbook. When your iPhone gets in the range of the terminal, it wakes up automatically. Pretty convenient, huh!


This is how you use it
In order to use Apple Pay services you must have the latest software (IOS) updated on your iPhone. However, it only works with iPhone 6 and 6S. Once you have the software in place, all you have to do is link your credit card with your Apple Pay. Apple has a wide variety of banks that they have partnered with since November 18, 2014. American Express, Bank of America, Chase, Citi, Master Card, Wells Fargo just to name a few.


This is where you use it
Apple Pay started to operate in October 2014 and in only less than two months, they have a great list of retail partners. They include Bloomingdale’s, Disney, Macy’s, McDonald’s, Nike, Office Depot, Staples, Subway, Walgreens, Whole Foods, Starbucks and so on. The list of retail partners continues to grow on a daily basis. The way in which Apple has positioned their strategy towards mobile payment clearly shows us that this is going to be big; quite possibly put an end to the use of actual credit cards altogether. We shall see.


In conclusion, with the increase of smartphone usage, mobile payments will play a major role in the retail industry. As mentioned earlier, every major retail player in the U.S. and all around the world will start to integrate their POS with mobile payment solutions. Carrying credit cards will be so 2010.






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