The iPhone 6 release has been getting a lot of the buzz. But I’m not here to tell you about larger screens or that your phone might bend if you keep it in your pocket. Instead, I want to tell you about a possible game changer that’s not getting as much attention — Apple Pay.
Apple Pay, which launches today, is poised to have a huge impact on how you spend your money and make payments. While you might be surprised that Apple Pay is not a new invention, it will succeed where other mobile wallets have failed. Here’s why.
Mobile Wallets Aren’t New
Another great innovation by Apple, right? Not so fast.
Others rolled out this technology years ago but with only limited success in the United States. Mobile wallets date back even further in Asia, where they’re very popular today.
Google unveiled the Google Wallet in the U.S. in May 2011. Google Wallet uses the same near field technology as Apple Pay. It also works on a variety of phones, including the iPhone, and with 300,000 stores that accept MasterCard PayPass payments.
But Google Wallet is a little different. Unlike Apple Pay, Google does see and store information on transactions, giving Google access to your data. Plus merchants haven’t embraced Google Wallet by promoting it as an accepted payment form.
Square partnered most notably with Starbucks to use near field technology for payments. But results were lackluster and Starbucks has since partnered with Apply Pay.
What Does Apple Pay Do?
Apple Pay includes many of the same features as Square and Google Wallet, but there are some key differences.
Apple Pay lets you load credit and debit cards to your phone and make payments using near field communication. But Apple doesn’t save transaction information, setting it apart from Google Wallet.
Apple Pay takes a few steps forward in security and privacy, too. These features arguably make Apple Pay more secure than using physical credit cards or cash.
Before making a purchase, iPhone 6 owners must authenticate their identity with the Touch ID fingerprint sensor.
Apple Pay is more secure for personal information, too.
Typically, when a purchase is made by credit or debit card, account numbers are transmitted to the merchant and stored on their servers. This is why the many recent data breaches at large retailers have put customer payment information at risk and have resulted in fraud in some cases.
With Apple Pay, debit and credit account numbers are never shared or sent to the merchant. Instead, a special security code generated specifically for your transaction along with your Device Account Number, which is stored on a chip on your iPhone, are used to send the payment.
With the launch today, Apple Pay is now available in 220,000 stores with that number is expected to grow. Major retailers that accept Apple Pay include McDonald’s, Whole Foods, Bloomingdales, Subway, and more.
Apple Pay Will Change The Trend
So what’s different with Apple Pay? And why will Apple Pay be different than failed mobile wallets? The answers to both lay with Apple.
Many Apple innovations haven’t been the first of their kind. Remember that iPod? Apple didn’t invent the MP3 player, but the iPod became the biggest hit of them all. Why? Because Apple changed the way we thought about putting “1,000 songs in your pocket.”
Apple Pay could easily follow the same route. You can carry dozens of credit and debit cards on your iPhone without any physical cards needed at all. And this form of payment is now accepted at hundreds of thousands of stores.
Mobile Payments Will Grow Even Faster
In a recent infographic on mobile payments we reported that more users than ever are now making online bill payments. With added conveniences like payments that can be scheduled and sent without checks, stamps and envelopes, it’s no surprise more consumers are embracing mobile payments.
While Apple Pay is poised to take off, there are still a wide range of payments it won’t cover. Apple Pay is mostly limited to purchases within stores or using iOS apps, and doesn’t cover most other types of bills and purchases. But there are plenty of other mobile payment apps, like Evolve Money, that can fill the gaps that Apple Pay doesn’t cover.
The Evolve Money app’s focus is on household bills like utilities, cable, cell phones, insurance, and more. The app allows users to pay their bills from their mobile device, tablet and PC. In all, more than 11,000 billers can be paid with Evolve Money.
With advanced security features, mobile payments can be more secure, too. Like Apple Pay, Evolve Money includes key security features.
Like Apple Pay, Evolve Money does not send credit or debit card information across the internet, either. Instead, users pay Evolve Money and then Evolve Money makes the payment on their behalf.
In addition, Evolve Money uses 128-bit encryption for all account data to keep users’ personal information safe.
While the services work well hand-in-hand, at Evolve Money we hope they’ll be an even better pairing. That’s why Evolve Money will eventually accept Apple Pay as a payment method.
Pay all your bills from just one app.