Mobile payment technology like Apple Pay is easy to use and secure

April 21, 2015

Mobile payments are going to be big because they offer consumers many advantages. Using a product like Apple Pay, a consumer can leave his or her wallet at home and rely on smartphone alone to make purchases and use loyalty cards at favorite stores and websites. 

Mobile payments are going to be big because they offer consumers many advantages. Using a product like Apple Pay, a consumer can leave his or her wallet at home and rely on smartphone alone to make purchases and use loyalty cards at favorite stores and websites. The technology is easy to use and, most importantly, it is secure.

Not having to carry around a wallet is appealing for consumers 
The days of bulky wallets filled with cash and receipts are over. Just in the same way that offices are going paperless, people are now going walletless. There is no reason to carry around a big leather monstrosity when instead a consumer can simply rely on mobile phone to make purchases and save receipts. Having to carry around less items is a freeing situation and there are instances where having a wallet is actually a hindrance to engaging in enjoyable activities. Recent research from Deloitte indicated just how prevalent mobile phone payments will be in the future, reported TechSmash.

“Deloitte predicts that by end-2015, 5 percent of the base of 600-650 million near-field communication equipped phones will be used at least once a month to make contactless in-store payments at retail outlets,” the report said, according to the news source.

Consumers that enjoy jogging or going to the gym sometimes like to visit a store after the workout to purchase a bottle of water or protein shake. In order to do so, however, they would have to bring a wallet. If you have a digital wallet loaded onto your phone, your problem is solved. iPhones have GPS trackers to log distances traveled, music players to provide a fun soundtrack while working out, and with Apple Pay, buying a drink after the workout is also easily taken care of.

Especially as the weather gets better, going for long walks is appealing. If you decide to stop into a store and purchase a beverage or simply decide you want to see a movie before you go home, you can use your smartphone to look up show times and purchase tickets on the go. TechSmash pointed out that joggers often do not have pockets big enough to carry a wallet, but with Apple Pay and the Apple Watch, that is no longer a problem.

Mobile payment technology offers consumers added security
Many people remember the days when they would visit ATMs and have to enter their PIN nervously, wondering if anyone was watching them or whether the machine with rigged. Especially considering the mass credit card breaches that occurred last year at major retailers like Best Buy and Home Depot, securing transaction information is more important than ever. With Apple Pay, these worries are a thing of the past. In the U.S., some banks and retailers have pushed for faster adoption of chip-based cards that require NFC-compatible point-of-sale devices, but that trend is not moving quickly enough. Additionally, one of the main benefits of chip-based cards, in addition to encryption, is that they can allow two-tier authentication. However, it seems banks are only requiring signatures to authenticate transactions, instead of a secure PIN.

Main Street reported that some retailers like Kroger stores, Target, 7-Eleven and Home Depot have invested in new sales terminals to accommodate the new cards, but without two-tier authentication, consumers are not getting the best security possible. Matt Schulz, senior credit card analyst at, echoed this sentiment.

“We’re seeing banks and issuers move slowly toward adopting chip technology,” said Schulz, according to the news source. “However, most of it is still chip-and-signature, as opposed to the more secure chip-and-PIN.”

Mobile payment technology like Apple Pay is just as safe or safer than chip-based cards
Apple Pay, which uses NFC just like chip-based cards, also relies on tokenization to protect transaction information. Unique tokens are generated for each transaction, which makes any stolen information virtually useless to hackers. Perhaps most importantly, Apple also uses fingerprint authentication, thus making it safer than chip-based cards.

The advantages of mobile payment technology like Apple Pay are clear. Consumers can rely on only carrying around their smartphone or Apple Watch to make purchases. Apple Pay is already accepted at contactless payment terminals at over 700,000 locations in the US. The mobile payment service also works at Coca-Cola vending machines and popular hotel chains like the Marriott.

Retailers that have not yet upgraded their POS devices should consider doing so soon. Increasingly, consumers will see the benefit of foregoing their wallets and relying on mobile phone to make purchases. If you have a store that does not accept NFC payments, customers may jog right past your store and find a retailer that is more current with the times. Don’t let that happen to you.

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