Apple’s new Apple Pay, a new NFC-based mobile payment service which allows users to pay using the iPhone 6 has generated an interest in several companies and are rushing to sign up with the company for the payment feature.
Apple had a late entry into the mobile payment system, but is already catching up with financial companies and giving a tough competition to other mobile payment systems. The new service will allow more than 800 million users to pay using their iPhones or smartwatches as the company has already collected their debit and credit data from iTunes store. Users will only have to hold the device near the store readers to pay while leading credit companies like Visa, MasterCard and American Express have agreed to work with the service.
“Apple’s approach appears to be collaborating with the traditional payment networks, instead of competitive, and it’s much less disruptive,” said Nathalie Reinelt, a payment expert at Aite Group.
Major retailers are also lining up to partner with Apple for the service and banks are promoting the service to customers in a bid to generate revenue from the customer transactions. Softcard, a consortium of US wireless carriers also announced that it was working with Apple to develop a SIM-card version in 2015.
Apple Pay is already in the process of integration with Twitter with a ‘Buy Now’ button and a ‘Pay button for Facebook. Twitter founder Jack Dorsey stated that the Square, a credit-card reader startup used by many leading retailers can accept the new service. Major credit companies registered with Apple as they didn’t want to be cut out in the process. The new service is set to affect PayPal payment system owned by Ebay and other smaller mobile payment companies.
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