Enabling Technologies

Obama Gave Apple Pay potentially $26.4 Bn+ each Year in Transactions to Process

MEDICIFounder and Chief Strategy & Innovation Officer

Bloomberg reported today that U.S. President Barack Obama arrived in Silicon Valley bearing gifts for Tim Cook: A seal of approval for Apple Pay.

The White House announced Friday that Apple Inc.’s mobile-payment system will be enabled for users of federal-payment cards, including Social Security and veterans benefits that are paid out via debit cards. The deal includes the Direct Express payment network and government cards issued through GSA SmartPay, which handles more than 87.4 million transaction worth $26.4 billion each year, according to the General Services Administration.

Now thats a huge win for Apple Pay that could mean at least $26.4 billion of transactions each year. Not only that, but it might also result in more iPhone sales. Obama understands technology and probably knows that Apple Pay is one of the most secure mobile payment systems available in the US today. In October last year, U.S. President Barack Obama signed an executive order to improve security measures for federal credit cards in an effort to lead the way for banks and retailers. The President also called on Congress to enact his Cybersecurity Legislative Proposal.

Federal government ​endorsement for​ Apple Pay​ is not surprising given the ever-increasing importance of data and card security. ​The administration’s announcement came in advance of Apple CEO Cook’s speech today at Obama’s cybersecurity summit in Palo Alto, California, where he said protecting peoples’ privacy was paramount.

Obama arrives in Silicon Valley at a time when his administration’s relationship with technology and Web companies has grown frosty over government spying and the privacy rights of their users and customers. Ajay Banga, CEO of MasterCard Inc., and Brian Moynihan, CEO of Bank of America Corp., are among the industry executives slated to speak at the event.

Brian Roemmele writes in this blog that Apple Pay will be able to be used at national parks and other federal entities that currently accept credit cards by September 2015. This ultimately may represent thousands of locations in the US.  This will have a profound impact on raising the rate of Apple Pay adoption overall. Brian says that "This Is A Huge Milestone For Apple And All Of Us", says Brian.

What a journey this has been! Remember those NFC deniers?  Remember those instant payment experts here on Quora that “knew” Apple would not facilitate payments? Remember those high valuation payment startups that were so enthralled and insular, they passed up on having advance support for Apple Pay years ago? This news is a sort of crowning achievement, not so much in payment card volume or number of locations but in the fact that it is now irrefutable that Apple Pay has already become a part of not only payments history, but also American history.

​Don't miss out on our article about the Patent that showed Apple Pay 2.0. We broke the news first about it yesterday.
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Update: Watch the Tim Cook video speaking at the Stanford event

Amit Goel

MEDICIFounder and Chief Strategy & Innovation Officer

“Amit Goel is the Founder & Chief Strategy & Innovation Officer for MEDICI. Amit’s vision is to build a strong FinTech market network that involves financial institutions, banks, startups, investors, analysts & other key stakeholders across the ecosystem – helping each one of them in a meaningful way by removing the asymmetry of information and providing a platform to engage & transact.\ \ Amit is passionate about bringing actionable FinTech-focused insights, innovative products & services for the FinTech ecosystem. Some of his work involves startup scores, bank scores/assessments, predictive viewpoints & other innovations that have helped MEDICI’s customers and the ecosystem. He has been named amongst the Top 100 FinTech thought leaders/influencers in the world & Top 10 in Asia multiple times by reputed agencies, consulting firms as well as financial institutions. Amit has built MEDICI (formerly LTP) as a new-age, tech-enabled advisory/research firm, which is now considered the #1 global research & innovation platform for FinTech in the world.\ \ Amit has been writing pioneering viewpoints on financial technology space that have been ahead of the curve since 2010. His data-driven predictions have helped the customers as well as the ecosystem. His past work experience includes a strong background in strategy & market analysis and advisory to clients (from big business houses to Fortune 500 firms) in payments, commerce, financial services & IT/technology. In the past, Amit had also founded a successful consulting & research practice called GrowthPraxis and has worked at Boston Analytics, Frost & Sullivan, and Daimler Chrysler in strategy & research.”