Apple pay:taking mobile payments mainstream

Apple pay is a digital wallet for Apple devices like the Apple and iPhone watch.
It's a feature that lets you use your device to make purchases without taking out
your wallet,purse,credit card or cash. Here is a short story about Tag"a person
who use Apple pay system ". He used Apple Pay in three cases:

*To pay for food via Apple Watch

*Summon a UperX car using Uper App
*Buy clothes with a few simple clicks on his watch

Finally, he paid for the taxi by approaching the destination via Apple
Pay.

Online,ofline and well payments became possible through Apple Pay. A

number of people did not believe at all that one day mobile payments
would be possible but, after a few years, when mobile payment
replaced card payment, people realized that this was possible and it
happened.

Hardly new
The ability to pay for transactions with a mobile device is hardly new. The first
technology for mobile payments was invented by Sony way back in 1989. It's first
use was in Hong Kongs subway system in 1997 and it take root in Japan in 2001.
The people of Japan quickly got used mobile payment and by 2004, the the
program had become commonplace. More than 245 million Japanese mobile
phones have been equipped with mobile payment system. But in US a similar
system is not take root. PayPal was the first to take advantage of the smartphone
revolution by creating a payment app that gave just about every smartphone the
potential for mobile payments. Google entered a mobile payment game by
launch of Google wallet.
In past 5 years numerous companies have tried to gain market acceptance in
mobile payment, but non of these players did not succeed. But all the efforts
made did not have much effect on the payment by US card. It is true that paying
by telephone is a rational task,but it is difficult to convince the American people
to use mobile payments.

Apple is not the first to creat phone payments, but Apple has done something
that people will accept.

Overcoming Negative Customer perception

With the emergence of mobile payment customers were concerned about the
security of their money and mobile payment. Although companies trying to
design a good security system, customers still worried that their mobile phones
would not be a way to misuse their credit cards and bank accounts. Apple took
security to higher level to recognize costumer reluctance to place digital versions
of their financial devices in on app. Using fingerprint is more secure than entering
a password,and when an Apple device is lost or sold, its owner can use Find My
iPhone2,can lock or delete their Apple pay or Apple informations completely. All
Apple devices have a separate and special account number. This account is
protected by a special chip, and this number is only exchanged between the buyer
and the seller and there is no need for a name or card number. It makes Apple
payment more secure. But still, paying by phone is a new feeling for people and
they are afraid to use it and it is not easy to replace a new method (Mobile
payment) with an old method(credit card payment). people are still afraid that
they will not work properly in the right places because it is an electronic device
and it is possible.

Establishing Points of Acceptance

In order for Apple to replace the card with a mobile payment, it must be
accepted by customers.To pay via mobile, it is essential and important that it is
accepted by customers and market vendors, and if accepted, they can penetrate
the market. One of the challenges is that customers do not accept this system ,if
retailers do not have the system.
But with all these challenges, Apple has succeeded to extent covers shops and
markets and equips them with the Apple pay system.

Apple has been able to equip 700,000 retails and supermarkets, with the Apple
system and contract with 83% of banks. It is true that Apple is accepted in more
than 700,000 stores,even though Apple Pay is now technically accepted at more
than 700,000 U.S. retail outlets, many of those outlets don’t yet have the
hardware installed that will recognize Apple’s app. One recent survey showed
that 66 percent of iPhone 6 owners had signed up for Apple Pay, but nearly half of
them had visited a store listed as an Apple Pay merchant only to find that the
location wasn’t set up yet to process mobile payments through the app3.The
mobile payments leader(Apple) has a long way to go before reaching critical mass
with 8 million retail outlets.And 83% of banks have their own problems that force
people to use card payments. It is true that Apple has surpassed its other
competitors,but with the advancement of technology, competitors are also
advancing. Apple need to work harder and innovate to remain the market leader.
After all, nothing is stopping it from creating Apple Pay for Android devices3

Questions

1- As completely as possible, sketch the value delivery network for Apple Pay.3
The value delivery network is 1st that it is convenient. The same way credit cards
and bank cards changed how we carry money and pay for things, Apple Pay wants
to take the next step forward. Apple wants to make it so we have one less thing
to carry and be more customer friendly. If Apple could have it their way, we
wouldn’t be carrying wallets at all and all payments would be made through our
mobile devices, rather than by card or dollars. Apple is trying to bring this
convenience to their consumers, but hasn’t really transcended like it was
intended too. With that being said, Apple Pay has been regarded as a solid step
forward in setting the trend.

2-With respect to Apple Pay, is Apple a producer, a consumer, or an

intermediary? Explain.4

With Apple Pay, Apple is an intermediary as well as a producer due to Apple

being responsible for the technology they are using. Apple is probably one of the
3 most influential companies in America and are using their platform to introduce
their payment method to the mainstream. Apple creates this technology and
wants it to be the norm. Apple is also an intermediary because they create this
brand loyalty with consumers and partnerships with stores to make sure the
option is available. We have to know about the app and use it in addition to
stores accepting it, without both Apple Pay won’t work.

3-Identify all the reasons why Apple’s partnerships are essential to the success
of Apple Pay.4

With more partnership with banks,retailers and marketers Apple will be more
accessible to consumers to adopt the Apple pay as their main source of
transactions. And Apple needs to work with retailers and banks because this is a
new technology and needs to work with different parts of a market to be
acceptable and accessible for customers. And also the reasons why Apple's
partnerships are essential to the success of Apple Pay is when forming relations
with top companies, they can bring in other consumers to get the product since it
attracts more attention. The more top markets follow with Apple Pay, the easier it
is for the technology to maximize consumers.

4-With respect to marketing channels, what are some threats

to Apple Pay’s future?5

The challenges that Apple faces are in the first step of the competitors because
the competitors are trying day by day, to make devices similar to Apple pay, and if
competitors succeed, it will reduce Apple pay's job market.And another challenge
is technological advancement. With the advancement of technology, better
devices may be made than Apple pay. And another challenge for Apple pay is to
be acceptable by the customers and for this Apple and other companies have
taken serious steps to secure the process.