Enabling Technologies

In the Meantime, Apple Pay Gets Closer to 2.0

On February 28th this year, we wrote about how Apple Pay 2.0 can bring the value. We had come across some exclusive patent information and through our own sources, we had predicted that Apple Pay would bring attractive prospects such as a rewards program and more. And now we see that these ideations are taking shape into reality. Apple is poised to announce further developments on the Apple Pay platform at WWDC 2015 scheduled to be held from June 8th to 12th.

The new revelations around Apple Pay at WWDC would involve the advent of an exclusive rewards program, as reported by The New York Times. These new updates come at a time when the mobile payments transaction volume is expected to reach $142 billion by 2019 in the US, according to Forrester Research. Post its launch, Apple Pay has been a key player in increasing the awareness of NFC-based mobile payments.

Apple Pay has been working actively with numerous American banks, retailers and payment card players. Apple Pay is now available at more than 700,000 locations, including more than 2500 banking locations. Apple Pay’s extensive merchant acceptance list would indeed help drive its upcoming rewards program.

In December last year, ITG Research had revealed that Apple Pay had reached an accountability for 1.7% of the mobile payments market. The upcoming rewards program would indeed be an effective incentive to further increase this percentage. Apple Pay supports cards that represented roughly 90% of the credit card purchase volume in the US. Apple Pay can now be used for in-app payments in more than 58 apps and in-store payments at more than 47 merchants.

If we take a deep dive and analyze the Apple approach, we can conclude that Apple is not just a creator but also a refiner of technology. Although Apple wasn’t the first to come up with an NFC-based mobile payment system, simplicity and use of biometrics by Apple Pay has made it far more friendly. It can certainly be assumed that Apple would take a similar approach to value-added services as well, such as a rewards program. The rewards program is indeed being looked upon by Apple as a strategy to bring far greater upgrades to the Apple Pay platform and truly label it “Apple Pay 2.0.”

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