Apple has
launched its new mobile payment system for the iPhone 6 and iPhone 6 Plus
users, called the Apply Pay. This new innovation in technology could perhaps
one day render physical credit cards obsolete. Not only the new iPhone 6 and 6
Plus users, users of the older models can also use this service.
The way this
payment method works is by sending short-range radio waves. The message goes
from a special chip inside the new iPhone to the register. It is known as NFC
that is available in these new devices. The users can simply tap on ‘Pay with
Apple Pay’ on the participating website or online stores, put their finger on
the fingerprint reader, and voila. The charge goes straight into the credit or
debit card of the user that is setup with Apple. This service is now also
available on roughly 220,000 store locations such a Macy’s, McDonald’s,
Staples, etc.
This new
service is actually safer than using credit cards. It relies on the fingerprint
of the user rather than an unsafe PIN number. This greatly reduces the risk of any
credit card fraud. This new technology is a major improvement over the static,
easy-to-copy information on a credit card.
It was about
time that Apple has introduced such a technology. Competitors like Google has
already been capturing a large share of the market by its Google Wallet
service. The amount of Apple users around the world, especially in the more
developed countries has significantly risen over the last few years. This
service will not only allow Apple to regain the lion share of the mobile market
by selling even more of these devices but also allow the giant customer base to pay
for their transactions more securely. More people will be interested to invest
in the Apple stocks, along with which consumer spending is more likely to
increase. The demand for using credit cards because of this new turn in
technology may fall gradually in the future. As a result, most of the
electronic transactions will go through successfully and help businesses, and
eventually the economy in the long run.
This is an interesting concept and something that will definitely change the way consumers make purchases. Although this is a more safe system, many of the recent breaches of customer data have been highly secured. If this system is largely adopted there will surely be hackers attempting to break into the system so it must be carefully monitored.
ReplyDeleteOwing to your concern about hackers breaking into the system, the best thing about this Apple Pay technology is that hackers cannot get any relevant information from the transaction. This is because at checkout, Apple Pay sends out a unique one-time-use code, and not any credit card information, to the retailers which is then verified by the bank. Apple or any other mobile wallet companies can never get any information about your transaction. Therefore, even if hackers manage to steal the codes, they will not be useful as they cannot be used twice. So the transactions are purely safe.
DeleteThis is a very interesting advancement that should no doubt change the way we buy things online. This kind of technological progress is what makes Apple so popular and prosperous so it is good to see them coming up with new things after what many called a dip in their output with the iPhone 5s. This new technology should change the way transactions are made and I wouldn't be surprised if it could eventually lead to higher productivity in the economy in one way or another, helping our economy. I wonder if this fingerprint technology will be adopted by brick and mortar stores, as well, so we will never need credit cards or physical money again.
ReplyDeleteWhile this might be safer than our current cards, what about the credit cards with the microchip in them? Europe has been using these now for a few years and their fraud has decreased substantially.
ReplyDeletePersonally I would be uncomfortable paying with my phone. There is an android app that does the same thing called a virtual wallet and for some reason I am uncomfortable giving my information to databases that keep my info for long periods of time. One hack into Apple Pay or Android Wallet could be devastating for those app users and to me it doesn't seem unrealistic that that could happen.
I think Apple Pay is going to be very popular with iPhone users. It sounds like a safer way to make online purchases since it uses a fingerprint rather than a PIN number. I wonder if many flaws will be discovered in Apple Pay in coming weeks, as it seems like faults and defects are usually found shortly after Apple launches any new products or iOS updates.
ReplyDeleteI think this is a great idea for apple and consumers. Over the past year many hackers have been able to access critical private information by gaining access to credit cards. With this new method it seems a lot more difficult for them to get this information. This is also beneficial to consumers because they no longer have to have a huge wallet with all their cards, they can just use their iPhone. I wonder if apple gets a cut of each transaction because I do not really see how they make money off of this.
ReplyDeleteThis is a way for Apple to change the entire credit/debit card atmosphere. The fingerprint scanner instead of a faulty pin is an aspect that will definitely make consumers feel more secure. Although it seems flawless today, I wonder what sort of negative headline will be seen first regarding this new payment service. As other people mentioned, with hacking on the rise in the news, will Apple Pay become a victim as well? Due to this new advancement, Apple should see an increase in sales as people will be inclined to try this at their favorite stores. I'm excited and curious to see what news comes from Apple Pay in the upcoming weeks/months.
ReplyDeleteApple has innovated and exceeded markets that have finally caught up and yet again they are now ahead with this new technology.Its not as though the pin is hacked with a debit card rather than a credit card is taken and charged. But this fingerprint technology will almost make it impossible to hack or use other people's money electronically but I am interested to see what the flaws are if there are any.
ReplyDelete