Well, it’s finally here! After weeks of anticipation, Apple Pay launched on Monday. Apple also unveiled the iPad Air 2 and iPad mini 3, both with Touch ID sensors and an embedded secure element, which means Apple Pay can be used for in-app payments on those devices as well as the iPhone 6 and 6 Plus. Apple Pay launches at a time when the US payments marketplace is in turmoil: The frequency and scale of security breaches are on the rise, issuers are beginning their migration to chip-enabled cards, and mobile payments are still quite nascent — even after significant investment and a range of competitors that have come and gone. Enter Apple Pay.
Just as new products and services from Apple have reshaped other industries, Apple Pay will reshape and set a new benchmark in consumer payments. There are many well-designed aspects in the initial version of Apple Pay — these are the Apple Pay “hits.” They include a context-aware, streamlined user experience; a breakthrough approach to security; unprecedented payments ecosystem cooperation; and great timing.
Although there is a lot to like about Apple Pay, this ship has holes. If not addressed, these “misses” — such as an inability to scale in-person payments, limited consumer and merchant value, and reduced consumer insight for marketers — will derail Apple Pay's ability to reach the mainstream, become the undisputed commerce platform of choice, and achieve Tim Cook’s vision of replacing the wallet.Read more