Entrepreneurs Should Get Ready for Apple Pay

Do you remember not to long ago we paid with cash, or stood in lines behind someone writing a check and then entering into their register. I remember on eBay we would take money orders, cash, and checks for payment and it was normal. Then PayPal entered and offered people a way to pay via email. It was strange, and people were resistant to use it citing security issues, difficulty of use, and just plain fear.

As a merchant we seemed fine taking money orders and cash and were reticent to change. But slowly the world changed and accepted PayPal as the norm and checks and credit cards as foreign, at least on eBay. Now I marvel when I am at a store and someone uses cash or a check. It seems so antiquated and it takes so long. Now Apple is trying to revolutionize the next wave of easy payment solutions…the touch and go.

This system is not really new. I remember a lot of people trying this type of payment system, we had a fast pass, easy pay, and other touch and pay systems. For now it hasn’t caught on because of one simple factor. It wasn’t integrated into a system people could use without thinking. Apple decided to put it into their new phone, a genius move, because people have it with them every moment, and already probably have it out when in a checkout line. I know may people with smart phone cases that hold credit cards in them.

So why not integrate it with the phone. Before this could go mainstream they had to make this past three tests, and I believe Apple nailed it on every front. I mean think about this, Google tried and so far a lackluster response, but with Apple we are all little faithful drones who happily follow the Apple beating drum and row the boat gently down the stream. So does everything that Apple touches now turn to gold?

So lets see if Apple Pay nailed these three objections to electronic wallets.

Ease of Use
Seamless Payment
Security Concerns

First is ease of use. Basically you store you’re credit card into the phone system, which is stored via a special number not your credit card number so people cannot gain access to the number. Then you simply tap the phone on the pay terminal and it sends a cryptic code to pay for the transaction. Safe if any hacker is nearby trying to scan and collect credit card numbers because the code has nothing to do with any payment source number.

Second is seamless payment, according to MacWorld.com “Apple has established partnerships with enough issuing banks and payment networks to cover the majority of credit cards in the United States. Each of these is responsible for taking the card number you scanned on your phone and issuing the device account number. ” this according to contributor Rich Mogull. This should allow for seamless payment with all of our cards on one device, your Apple iPhone 6. So it looks like seamless payment will be very viable with your iPhone. And as soon as more payment gateways are setup more retail merchants will accept this form of payment.

Third is security concerns. Apple has put in layers of security enhancements that will actually make this payment safer than having credit cards in your wallet or using them one an eCommerce site. So how will this work? First Apple does not store any card information, and all information transmitted are through cryptic code. Each card is then given a “token” which is an unique number instead of the credit card number. This number is bound to the phone so it cannot be used without the phone. If you lose your phone all you have to do is get a new token and you can keep the same credit card. But even if a person steals your phone and tries to access the stored payment information they will have to get through the layers of security built into the phone like the fingerprint touch identification or pass code.

The NSA can’t break into your IPhone 6 even if they had 5 years.

Also Apple has expanded its security on iCloud with a two step verification process. This is important as Apple Pay becomes more prevalent it will go hand in hand with storage options on the cloud. Apple will store all of your applications there and also may put more of your secure information up there like health records and personal information. It is so secure that apparently Apple cannot access it even if served with a warrant.

Even cops with a warrant to pull private user data off of someone’s fancy new iPhone or iPad might be out of luck—Apple says that with the release of iOS 8, it’s now not physically possible for even the company itself to access that info, reports the Washington Post.Apple: We can't, won't unlock devices for police By Jenn Gidman

So with all of the objections overcome with Apple Pay, and with pre-order numbers of the iPhone well over 4 million and counting it seems almost assured that this will take off. Given that it will be used with all Apple iOS application payments, it will only become second nature that people will use it once more merchants are setup up with the payment system.

As a merchant I looked at my Authorize.net account and they offer a setup to Apple Pay which is, right now, only for Apple iOS application payment acceptance and only through a few payment systems but they do state that more are coming soon. So as an online business entrepreneur you should learn the lesson from yesteryear when PayPal was just released and get a head start on your competition and learn how you can get on in the ground level of the new payment system that just might revolutionize the way people pay you.