Apple Inc. (NASDAQ:AAPL) has unveiled its plans to start a new brand new mobile payments system called ‘Apply Pay’. Apple’s entry into payments system is hailed as a brand new day for business owners. Once it becomes available, swiping credit card may, in coming days, may soon become obsolete.
Popular credit-card companies, including MasterCard Inc (NYSE:MA) and banks joined Apple’s efforts in bringing out Apple Pay. The new payment system is tipped to replace credit card account information with a digital ID for both online and mobile purchases.
Apple’s CEO, Tim Cook, said that Apple Pay will come into force in September this year.
Apple is hugely compatible with the new iWatches, including the upcoming Apple Watch and the latest iPhones, such as iPhone 6 and 6 Plus and the 5th generation iPhones. It is ideal for the users who do online shopping. Near-instantaneous checkout can be activated with a mere touch of the home button. This technology is conducive to digital purchases with Uber, Target and Panera.
Allaying the security concerns of the new system, Apple Inc. (NASDAQ:AAPL) clarified that cashiers will not be able to view the credit card payment details of the user nor the names of users. Each time the shopper enters a uniquely created one-time code, as such there is no possibility of credit card numbers being stored on iPhones.
Apple Pay is set to be beneficial to major credit card institutions like MasterCard, Visa Credit Cards and American Express. With 800 million credit card account holders in its iTunes Store, Apple Pay believes it is in a position to extend the service to many more people.
Google, Paypal and Square are already running payment systems of their own. Unlike these players, Apple Pay’s mechanism is well-equipped to provide faultless service to a large number of people at a time. The users can make the payment for a vast number of goods and services in quick time through Apple-owned apps covering Tickets.com and Groupon and physical stores.
The multinational technology firm added that it is confident of being patronized by the U.S. major retailers such as the Disney Store, Bloomingdale’s, Subway and Staples, Duana Reade, Macy’s, Inc. (NYSE:M), Whole Foods Market, Inc. (NASDAQ:WFM) and Wall Greens.
That it has received a shot in the arm with the White House’s announcement that Apple’s new mechanism will be used in a big way covering the users of social security. Besides, the White House plans to extend the utilization of Apple Pay to federal-payment cards and veteran benefits that are now paid through debit cards.
It is a moot point as to how far Apple will be able to penetrate into digital wallets, a goal that has dodged tech companies and credit card institutions for years.