With next month’s launch of Apple Pay, Apple’s new mobile-payment system, industry analysts predict we’re at a turning point when it comes to how customers pay for purchases.
Technology that enables customers to make purchases with a swipe of their smartphone isn’t new. Google Wallet for example has been around for a while. But for a variety of reasons, the concept hasn’t taken off. In a recent survey by CreditCards.com only 13% of the 1,000-plus respondents said they would use their phone to purchase things most or all of the time.
What’s different now? Simple, Apple’s involvement. Apple is a proven winner when it comes to generating demand and introducing the right product at the right time. All the major credit card companies and banks are on board as is an impressive line-up of big-box retailers and online services.
What’s the big deal?
Consumers may be more likely to try Apple Pay because it has safety features that greatly minimize, if not eliminate, the opportunities for credit card data breaches. These features should also appeal to merchants who, starting next year, will have increased liability for credit/debit card fraud. It should also make purchases faster and potential more abundant.
What’s a small business to do?
Experts say it could take at least a year for Apple Pay to have a major impact in the market. In the beginning it will only work at a fraction of the millions of card-accepting businesses in the United States, and consumers need the new iPhone 6 or Apple Watch to use it.
But it is important to keep an eye on this. (Remember, there was a time when people refused to do their banking online.) Experts say it’s only a matter of time before digital apps routinely replace cash, checks and credit/debit cards for in-person and online purchases.
So here are some resources to help you get started: from explanations of Apple Pay and mobile wallets to views on what this development means for small businesses like yours.
Everything You Need to Know about Apple Pay, Supermoney.com
4 Ways Adopting Apple Pay Can Benefit Small Business, Entrepreneur.com
Should Your Business Invest in Mobile Wallets?, Quartsoft.com
Does Apple Pay Make Sense For Small Business?, SmallBusinessComputing.com