Mobile Payments Are Here.
Paying with cash, credit or debit may become things of the past. Imagine paying for groceries, clothes, or lunch with your phone! That would eliminate the need to dig through your purse, or scurry to find your wallet. Instead, you would only need to pull out your phone. How convenient would that be? No need to imagine - it's already here! In October 2014, Apple launched the first ever contactless payment method, Apple Pay.
Apple Pay Is Getting Bigger.
According to Apple Insider, since January 2015, Apple Pay accounted for 2 of every 3 dollars spent through no-contact payment systems. Tim Cook, CEO of Apple, announced that since the activation of Apple Pay in October, there has been a huge uptake. Cook reported that there were over 1 million activations in the first three days, and growth is expected throughout the year.
Financial Institutions are getting on board. At first, 500 banks and financial institutions announced their support for the new payment method. And through January, more than 750 financial institutions have expressed a desire to get on board with Apple Pay.
Apple Pay now accounts for 80 percent of contactless transactions at Panera Bread, and Whole Foods saw a 400 percent growth in contactless payments since Apple Pay's launch, said Cook.
Apple Pay also launched at 200,000 self-service stations, including vending machines, laundry machines, parking meters, and more.
Reduced Fraud, and Safer Than Your Card.
Security is Apple Pay's biggest strength. When you use a debit or credit card, payment information that is stored on the card's magnetic strip is read by the card machine so that the payment can be made. This means that payment information is revealed.
Contrarily, Apple Pay does not reveal payment information. It uses a digital account number, called a "token," to tell the merchant the purchase is okay. The information is then passed to your cardholder, who then charges you for the purchase.
Why we need to up security: The latest polls from WSJ/NBC revealed that 45 percent of Americans say that either they or a household member had been notified by a retailer, financial institution or credit card company that their card information had possibly been compromised because of a data breach. The increased rates of fraud in America have led to what is called "breach fatigue," meaning that less people are concerned about cyberattacks because they appear in the news so frequently.
As we move toward an economy using contactless payment methods, the amount of fraud will decrease.