Apple Pay comes out Monday, expected to be huge

October 16, 2014

Apple Pay comes out Monday and 220,000 U.S. merchant locations will immediately be ready to accept payments. 

Apple Pay will finally be launched on Monday, announced chief executive Tim Cook. Expectations for the new technology are high and 500 new banks have partnered with Apple since the initial announcement last month.

“It’s easy, it’s secure and yes, it’s a private way to pay for things,” said Cook, reported CNet.

Apple Pay is included with the iPhone 6 and iPhone 6 Plus. American Express, MasterCard and Visa as well as issuing banks are ready for the service to go live and 220,000 U.S. merchant locations will immediately be ready to accept payments, reported CNN Money.

Also endorsing the new payment technology are major retailers such as Walgreens, Macy’s, Staples, Duane Read, Subway, McDonalds and Whole Foods. Disney stores will accept Apple Pay just in time for Christmas shopping, the news source added.

Mobile payments offer consumers a secure and reliable way to manage their purchases. Already many of Apple’s 800 million customers use applications such as iTunes to make purchases – buying music, books and movies. iTunes accounts are linked to user credit cards and Apple Pay simply expands upon this idea by introducing a payment process that involves a secure digital wallet.

Will Apple Pay replace the wallet?
Chief executive Tim Cook commented last month that Apple Pay could eventually replace the physical wallet. Apple Pay works by simply tapping phones to point of sale devices enabled with NFC technology. Additionally, Apple Pay will include a feature called TouchID, which allows users to to press their finger to the screen and finalize purchases in apps. With TouchID, purchasing is made easier because excessive passwords and login credentials are bypassed due to fingerprint authentication. Apple Pay will be integrated into several apps to allow faster and more secure purchases over the coming year, reported CNet.

Vice president of innovation and strategic partnerships at Visa, Jim McCarthy, believes that Apple Pay working with app purchases will be a transformational step for the mobile payment industry. He explained that many possibilities will become clear that previously could not have been imagined. He gave an example of drivers paying for gas at the station without having to get out of the car.

According to Gartner, mobile payments are projected to reach $720 billion in transaction value by 2017. This represents a $235 billion increase from last year. Apple Pay is launched on Monday and Tim Cook has expressed repeatedly that he has high hopes. 

“We believe Apple Pay is going to be huge,” Cook said, according to CNN Money. “It’s going to change the way we pay for things.”

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