Apple Pay, new payments system from Apple

Apple just announced yesterday that its new Apple Pay program will allow consumers to swipe their phone to do payments instead of credit card. Apple Pay aiming to replace some of the country’s 200 million annual credit card transactions.


“We’re totally reliant on the exposed numbers and outdated and vulnerable magnetic stripe interface,” Apple CEO Tim Cook told investors at a Tuesday announcement event.


But more than 60 percent of Americans say they would rarely or never use their cellphone to pay at a register, according to a survey released Monday by CreditCards.com, part of the North Palm Beach-based Bankrate network of financial news websites.


“Apple Pay has a big, yawning gap to overcome,” CreditCards.com editor-in-chief Daniel Ray said.
A breakdown of the survey’s findings on how often people would use their cellphones to pay at a register:

Always: 4 percent
Most of the time: 9 percent
Sometimes: 22 percent
Hardly ever: 18 percent
Never: 44 percent

The survey also found that the older you are, the less likely you are to use a mobile payment system. Men are somewhat more interested in the idea than women, and parents are more likely to use it than non-parents. See more of the survey’s findings here.

Apple unveiled two new iPhone models at today’s event, each of which include larger screens, better processors and higher resolution than the iPhone 5S, according to our sister paper, the Silicon Valley Business Journal. The company also released the Apple Watch, a smart watch that contains maps, health-tracking apps and other features.


Apple Pay comes at a time when merchants are switching out old credit-card readers to prevent data breaches. About 80 percent of the devices that are being shipped out now can accept the Near Field Communication, or NFC, technology that Apple Pay uses, Ray said.


“Their timing is good, in my opinion … (but) the habit of handing over your credit card is so deeply ingrained into people,” he said. “It’s a system that works. It’s worked for a long time, and people see no reason to change it. I’m still on the fence as to whether this new device is enough of a reason to change.”

 

Source : Celia Ampel, South Florida Business Journal