What is Apple Pay and why is it important?

The Long Journey Of Apple Pay

There will be a great deal written and to be said about Apple Pay. Many even astute experts will assume that Apple just took a year or so to build this new payment system. The truth be told it was a very long odyssey that spans almost a decade. It is also a masterful act of negotiation on Apple’s part to not disrupt, but to work with and not against all parties in the payment system ecosystem.

Yes, it has been a very long journey for Apple and payments. This journey started just a few months after the first iPhone 1 was announced. Apple took a slow and methodical approach to what will become a central feature of iOS devices moving forward. The first patent applications that were directly related to payments began to appear in 2008, they just did not seem obvious on to just a few weeks ago. One could even go to the days before Apple released the iPhone and see the foundation being constructed for finger print scanners and other security systems. Apple knew very early on that to have a mobile wallet it has to be highly secured. The results was TouchID and this was primarily established with the purchase of AuthenTec. The security was also extended into the very processor of the iOS device, the ARM processor. This was achieved through the use of the TrustZone/SecurCore ARM developed specifically to secure financial data. Apple took this framework and made it the foundation of the Secure Enclave.

Payment Card Breaches Changed Everything

The Target payment card breach was a huge turning point in the payment card industry. Up to this point all parties of the payments ecosystem had very little motivation to change the way they processed payment cards. The 1970’s era magnetic stripe was the primary system used in the US with dozens of startups for the last two decades spending billions of dollars to try to disrupt this system, all to no avail. But the Target breach was different, it was a huge number of cards, stolen from a top 5 retailer and it was getting the attention of government regulators. Thus in January 10th 2014 I asserted that the payment card companies would begin to support new technology that would assure the highest level of security. I presented it this way:

Apple’s Secure Enclave And Touch ID, Movie Entrance

Like the perfect set up in a movie, Apple has arrived with a fully encrypted wallet called the iPhone. The new iPhones use the Secure Enclave, iCloud Keychain and Touch ID to make the iPhone and Apple’s forthcoming iWallet a rather robust answer to many of these problems. By the end of 2014, we will see the almost decade of planning Apple did to become the first true, useful and secure mobile wallet ...


To read this article, create a free account

Already a member? Log in

Annual Subscription

12-month access to 10,000+ insights, research reports, a database of 13,000+ FinTech companies, and a live global community.




instant access to reports and global community along with donation to COVID-19 fund.

Quarterly Subscription

12-month access to 10,000+ insights, research reports, a database of 13,000+ FinTech companies, and a live global community.




instant access to reports and global community

--------------- Reasons to buy ---------------

Understand the “Why” Behind the “What”

MEDICI offers data-driven, original, unique, and forward-thinking content to understand the “why” behind the “what”

10,000+ insights, 100+ research reports, and 1,000+ videos based on data, collected and processed by top-in-class researchers with over seven years of experience in the financial service industry.

Actionable Insights

We do not stop at the data; we analyze it and extrapolate actionable insights that shape and forecast market trends. All of our pieces are neutral, authentic, and unique – this means that you can’t read them anywhere else!

Data Visualization

We do also care about design. It’s why our infographics are the most-used ones in company reports and the most shared ones on social media.

Growing Proprietary Database of 13,000+ FinTech Companies

We have one of the largest databases with more than 13,000 company profiles listed across 60+ verticals! The database contains primary data collected in two ways:

Through our Global Listening Engine – a proprietary algorithm able to extrapolate and collect data across numerous sources

Directly from FinTechs – thanks to the onboarding flow through which companies can list themselves on the most used database for venture capital in the industry

Join the Largest Global FinTech Community

You will be added to our private WhatsApp Channel with more than 200 FinTech leaders across the globe, where we engage in discussions around various financial services topics daily. After a few clicks, you’ll get to know the whole community, including the MEDICI team – you can ask questions, suggest topics, and get behind-the-scenes insights


What is MEDICI Inner Circle™?

MEDICI Inner Circle™ is the membership you need to freely access all MEDICI content, which includes insights, research reports, videos, startup knowledgebase, and the members-only community for live engagement.

What topics do you cover?

We cover more than 60+ sub-segments in FinTech – but we do not stop there; we also cover topics beyond FinTech, such as InsurTech, RegTech, PropTech, WealthTech, BankTech, AgriTech, and the enabling technologies enabling innovation such as AI, Blockchain, etc.

What do I get if I buy the membership? Is there a difference between being a free subscriber and being a member?

By becoming a member, you will unlock all the content on our website. A free subscriber gets access to only 5% of what we publish on the web-site. Paid members also get preferred access to our live events, and exclusive access to the members-only community for live digital engagement.

Do you have a discounted plan for students?

Yes. Please write to us at innercircle@goMEDICI.com.

Do you have an enterprise plan for corporates or groups?

Yes. Please write to us at innercircle@goMEDICI.com.

Do you offer refunds?

We offer a 7-day free trial during which you can access all of our data, insights, and analyses. You can cancel the subscription any time before the end of the free trial period. However, we do not offer refunds.

Unlock this article by signing up for MEDICI Inner Circle

--------------- OR ---------------