Monthly Archive for: ‘June, 2015’

  • Apple Pay. The Next Technological Revolution?

    Will The Villages, Ocala and Gainesville partake in this new wave of technology?


    The year 1997 witnessed a revolution in contactless payment service in the form of ‘speedpass’, coined by Mobil Oil Corp. (now known as ExxonMobil), for the electronic payments.  Around the same time food & beverage giant Coca Cola too had introduced mobile payments technology, where-in customers could make a mobile purchase. While that was the scenario in the US, the situation in Asia: the biggest emerging economy, was under the grip of a financial crisis. This led to fears of a worldwide economic meltdown and the financial contagion had slumping currency in the region, immensely affecting the worldwide market.

    Nearly after two decades, In September 2014, Apple Inc. an American multinational technology giant led a revolution in mobile payments with a new category of service, Apple Pay: an easy, secure and private way to pay the bills; online & offline. With too many frauds & scams being reported globally, the app is specially designed to protect the users’ personal information and does not collect any transaction information or card details. On the other hand, it cuts down the fees charged by banks and charges levied on credit card / debit card transactions.

    Apple pay, launched in United States: uses contactless payment technology and unique security features available in iPhone 6, iPhone 6 Plus and Apple watch compatible devices. With a fledging economy, a strong dollar and with improved purchasing power, the launch of apple pay resulted in robust sales for Apple for the year ending 2014, soaring the total revenue of the organization in North America to $30.6 billion (Source: Apple), a 23% increase in revenue.

    Asia Pacific, a good market to tap as it is estimated to have larger middle class than Europe and North America combined. There will be huge economic shifts in the region resulting in momentous changes in economic pattern of consumption, which actually was a key challenge faced by the business organizations earlier. China is going to lead the Asia Pacific region in terms of revenue. Greater China including Hong Kong and Taiwan accounts for $5.94 billion (Source: Apple Inc.) for quarter 2 ending in 2014, which is up by 28%. Whereas Japan and the rest of Asia Pacific accounting for $2.56 billion (Source: Apple Inc.) and $2.16 billion (Source: Apple Inc.) respectively, making the region second largest revenue source for the organization after North America. Overall, Asia Pacific revenue have grown 15.5% in past 12 months. In this region, Apple has already made its presence known and with launch of Apple Pay app, it will have an edge over other big market players such as Nokia, Samsung, Xiaomi, Oneplus and others, and it will be able tap larger market share in compared to others.

    As in North America, retailers and banks have tied up with Apple Pay, for secure and contactless transactions, likewise a leading domestic bank card organization: UnionPay was added as one of the payment option for customers in China. Tie-ups with a bank and e-commerce giant Alibaba group holding Ltd. will help apple to increase its market share, leading to no-card, no-cash payment system to iPhone users in the region.

    By 2020, India can be huge potential market for Apple Inc. – Apple Pay, currently with growing working class young population and increasing disposable income, the market stills largely runs on cash, even though debit and credit cards are used in major cities. This will change the way consumers pay with breakthrough contactless payment technology and unique security features with easy, secure and private way for payments.

    Apple Pay has led to revolution into mobile payment technology with another South Korean multinational conglomerate company – Samsung, one of its biggest competitor in the market, launched Samsung Pay in United States and Korea, for its android phones in March 2015. To tap the major market share Samsung had partnered with major payment networks such as MasterCard and Visa. In order to expand the partnership they are closely working with other financial institutions such American Express, Bank of America, Citi and JPMorgan Chase and are deeply committed to uphold security and user data privacy to the highest industry standards.

    As it is rightly said that nobody can be certain about the future but we believe Asia pacific holds the best growth potential for Apple by 2020, with major competition coming from Samsung.