Apple Pay. Is this the Future of Payments?

Today Apple announced a watch and a new iPhone 6. Most of the headlines you read will be centered around these devices. However, a much bigger focus for the retail industry was sandwiched somewhere in the middle of Apple’s keynote.

Today Apple announced “Apple Pay” – a mobile payments solution designed into the new iOS 8 mobile operating system.

Apple has jumped into the mobile payments foray in an effort to make plastic credit cards a thing of the past. The concept is simple. Use your phone and your fingerprint to buy anything – in person or online.

While a simple concept, many have tried – none have succeeded. Apple’s system differs from failed past attempts in a few key areas.

Apple is using a combination of NFC, iTunes accounts, and a secure element chip to complete the transaction. The key for Apple is its enormous collection of customer credit cards. According to Tim Cook, Apple’s CEO, over 800 million iTunes accounts exist, with the majority having credit cards tied to them.

Each transaction will be authorized with a one-time, unique number. The process prevents a store clerk from seeing any of your private financial information. Further, Apple made it clear they don’t collect this data.

Your purchases are confirmed and verified simply using your fingerprint.

In order for mobile payments to catch on in a big way it needs to “just work”. Apple possesses the hardware, software, and now the credit cards to change the game in payments.

Apple is launching with a host of retailers including Macy’s, Whole Foods, Walgreens, and Disney stores, with more to come. MasterCard, Visa, and American Express are on board, as well.

How does Apple’s Pay system fit into automotive retail?

With any new technology comes industry application. It’s our job to find the best fit for mobile payments in automotive. Can Apple Pay increase service revenue? How does it fit into the mobile shopping experience?

Today’s mobile customer is using their smartphone to redeem service coupons, schedule service, and get directions to the store. Why not complete the process with a one-touch checkout?

 

 

How else do you see mobile payments in automotive?

Does customer experience increase when offering a simplified, quicker payment structure?

How will linking dealership promotions to a touch-to-pay mobile model affect the number of consumers who redeem your offers?