BY: Justin Clagette
Apple Pay is a mobile payment service designed to allow Iphone 6 and Iphone 6 Plus users in the United States to make payments with their Iphones. This works both in stores as well as participating apps. Apple Pay has already began to change the way consumers pay for products but we will also begin to see a drastic change in how producers market their products.
Jack Philbin, CEO of Vibes, a mobile marketing company that works closely with Passbook and Google Wallet said, " Apple announcing Apple Pay was a wakeup call for marketers." Unlike Google Wallet, Apple Pay does not allow merchants to push their products to consumers. Some believe this is a flaw of apple pay but lets take a step back and look at the previous mentioned platform, Passbook. Apple Pay is just a payment functionality. Event though passbook has been around since 2012 Iphone users are just now beginning to pay attention to their mobile wallets now that it offers an easy way to pay for things through their Iphones.
Passbook allows companies such as Gap, Starbucks, The Home Depot, and Bloomingdales to upload mobile coupons and loyalty cards. Since the introduction of Apple Pay, these companies have seen a 54% increase in people installing coupons and loyalty cards. I think its safe to say that this increase is due to the presentation of Apple Pay.
Passbook has also taken advantage of the ability to know your location. Starbucks has been using Passbook for years now. Whenever a customer who has downloaded a Starbucks loyalty card is near one of the stores the card will appear on the lock screen. This also works for downloaded coupons. If someone was to add a Walgreen coupon, the coupon will appear on the lock screen when you get closer to the companies stores.
It will be interesting to see how many companies shift to creating loyalty cards and coupons that can be uploaded to Passbooks. Only a few stores allow consumers to use these in stores but I believe in a few years each store will offer this type of payment.
How has this technology been taken by the public? Has it been accepted or questioned? Mainly because with the increase in technology, i.e. knowledge of personal location and insight on a different level into personal bank account information. This increase in technology can be taken as a invasion of personal privacy.
ReplyDeleteHow has this technology been taken by the public? Has it been accepted or questioned? Mainly because with the increase in technology, i.e. knowledge of personal location and insight on a different level into personal bank account information. This increase in technology can be taken as a invasion of personal privacy.
ReplyDeleteVery interesting blog post Mr. Clagette. There are so many new innovated ways to pay now. Paying cash is going to be considered a thing of the past. Apple does a great job of keeping their brand relevant. Applepay is a product line extension of the Iphone. Apple pay adds more value to your Iphone and to apple users. Apple is looking to grow its market share in the mobile wallet industry. I am still unsure of the benefits or the competitive advantage applepay have over passbook and Google wallet.
ReplyDeleteGreat post! By no surprise Apple has found another way to take over with technology. Also, seeing that fraud is very common in the world today, how safe is Apple pay when protecting the privacy and personal information of users?
ReplyDeleteThis is a very interesting and good post. Apple continues to make strives in new innovations within the technology field. They continue to make things easier for their consumers to do a variety of things. The question then becomes as brought up by Mr. McKinght, is how safe is this? Apply has yet to have any privacy breaches but who's to stay this could not happen.
ReplyDeleteAt first I was surprised by such an innovation and I wondered how it works until I bought my iPhone 6. The joint product venture between WellsFargo and Apple transformed the payment method into a new sustainability form where society will be cardless or cashless once the other operating system other than Apple are able to make purchases using that same type of technology like Apple Pay. Google is also on the move of making a product that serves equally the same with Apple Pay because so far Apple Pay just serve WellFargo and Apple customers whilst actually there are more than 600 banks in United States and a significant population uses Android phones.
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ReplyDeleteIt will be very interesting to see how the use of cash as payment slowly begins to stop. If Apples continues to develop services like this , competitors could be in really big trouble . Pretty soon there will be no use for a physical walet. I'm anxious to see how fast it takes other banks to join this service . I bet they are working on this idea as we speak .
ReplyDeleteI like the idea of having a mobile/technology version of a coupon book. As stated in the post, it allows people to remain loyal to brands because they feel a sense of loyalty for their hard earned money. Do you feel eventually everyone would be okay with Apple pay? We stated in class all the problems around the internet of things how do you fee with the new age of internet hackers they could make people feel more comfortable?
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This post is very interesting. There are so many new ways to pay now. The use of cash is becoming more and more relevant to the market. Technology is taking a very high toll in the market and is controlling the way we go about everything. Apple keeps coming up with new inventions every year to take over the market. Applepay is a great invention and will soon take over the market.
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