Payment industry says Apple's EasyPay is great news

Apple will build the industry, they hope

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“Ultimately, mass adoption of mobile payments requires general awareness and the blessing of a trusted authority on consumer trends/behavior. Apple is one of the few companies that has this mandate, arguably perhaps the only one."

Trust

Given the choice, consumers have until now opted for already trusted payment mechanisms -- though interest in mobile payments is growing, not least the increasing acceptance of digital wallets, such as Passbook.

Falys continues: "Consequently, its enabling is going to give a major boost to the industry, creating willingness on the part of consumers to connect their phones with credit cards, use it as a primary payment device, and so on," he says.

Tipping point

This should translate into big opportunity for others in the space. "This is the tipping point," he said, pointing out that while mobile payments are expected to be part of the future, the way in which they work remains undefined.

"So far, only propositions that combine payment, loyalty and discovery have been successful, such as the Starbucks proprietary app," he says, pointing out that this is the kind of space in which his solution sits.

With an eye to multichannel marketing, YoYo is an iOS/Android app that lets users pay for products and receive special offers from trusted retailers.

"Celebrity" hack?

Some may think this week's iCloud hack, which conspiracy theorists note mysteriously appeared one week before Apple introduced its payment system, shows the company cannot be trusted.

They'd be wrong.

Apple's CEO has already -- but the social engineering behind the iCloud hack underlines how important it is to educate consumers using digital services to understand why they should:

  • Use all available authentication protections
  • Use strong passwords. Change them regularly
  • Never use the same password twice
  • Never use honest answers to security questions
  • Push all manufacturers to build geofencing and biometric protections.

Apple's payment system will win support from merchants, as its the missing link to the wide iBeacon deployment that is taking place.

The complex foundational innovation implicit in this step is typical of the company under Tim Cook. Apple has been gathering the pieces for this plan for years.

Also read:

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Copyright © 2014 IDG Communications, Inc.

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