Story image

Apple Pay marks "milestone" in payments space

11 Sep 2014

The long anticipated entrance of Apple into the payments space marks a milestone in payments regardless of the eventual outcome of its new services, according to analyst firm Ovum.

Gilles Ubaghs, Senior Analyst, Financial Services Technology, Ovum, who thinks that, perhaps, unsurprisingly given Apples proclivity for closed garden approaches, it's new Apple Pay service follows a more traditional Device based secure element (SE) and avoids using cloud based HCE services.

"This will add to security and enable card present transaction rates which will please merchants," Ubaghs adds.

"Although much hyped, the Apple Pay service is likely to remain niche at the point of sale for some time as overall device penetration remains relatively low and the service remains US only.

"More critically the in store experience provides little major incentive for use at this point, and while Apple benefits from its iTunes membership, the lack of tie in to loyalty or other features may at least initially limit consumer interest beyond early adopters."

But Ubaghs says that where Apple Pay is likely to have a bigger impact is in the remote mobile payment space, allowing for rapid online payment checkout via TouchID, presenting a much clearer benefit to consumers and merchants alike in reducing transaction frictions.

"The decision to release an ApplePay API to developers will likely prove the biggest revolution over time as it allows merchants, and indeed other third party payment providers to develop new payment services revolving around that core Apple payment service," Ubaghs adds.

"Opening up its service in this way will help to potentially cement Apple at the centre of a broader payments ecosystem by enabling a broader range of services."

Safety solutions startup wins ‘radical generosity’ funding
Guardian Angel Security was one of five New Zealand businesses selected by 500 women (SheEO Activators) who contributed $1100 each.
Hands-on review: The ruggedly tough CAT S61 smartphone
The driveway beckoned me, so I dropped the phone several times.  Back in the study, close examination has failed to reveal a single scratch.
How printing solutions can help save the planet
Y Soft has identified five key ways organisations can become more economical and reduce their environmental impact.
Is NZ’s tech industry starting to mature?
Technology is New Zealand’s fastest growing and third biggest industry.
How Kiwibank aims to enable greater digital inclusion
"Online tools can offer a more convenient and cheaper customer experience, but there can be barriers to usage."
Scammers targeting more countries in sextortion scam - ESET
The attacker in the email claims they have hacked the intended victim's device, and have recorded the person while watching pornographic content.
Inland Revenue to shut down services later this week
“There’s never an ideal time to shut down the tax system but we’re confident the changes will make any inconvenience worthwhile.”
NZ managers prefer intuition to big data, Massey study finds
Many senior managers in New Zealand businesses have an inherent distrust of big data, opting instead to rely on their own intuition.