Apple Pay was the first mobile wallet, allowing consumers to send and receive money by connecting credit cards, debit cards, and bank accounts to mobile devices. Out of the three most popular mobile wallet systems today (Google Pay, Samsung Pay, and Apple Pay), Apple Pay continues to be the most popular, with 34 per cent of the market share.
This article introduces Apple Pay, including how it works, the market forecast, and why you should integrate the payment service into your mobile app.
What Is Apple Pay and How Does It Work?
Apple Pay is a mobile wallet service that allows users to make payments or conduct regulated transactions using their iPhone or iPad. Apple Pay is compatible with the iPhone 6 and later and the Apple Watch and Mac operating systems.
To utilize Apple Pay, users must first add credit cards, debit cards, or prepaid cards to their device’s Wallet app, allowing them to make contactless payments in stores, applications, on the web, or any place an Apple Pay logo is shown. To finalize payments, users can use Face ID, Touch ID, or passcode to verify their identity.
Is Apple Pay a safe option?
- Apple Pay allows consumers to make safe, confidential, and seamless purchases.
- To further protect transactions, Apple Pay uses security capabilities built into the hardware and software of iOS devices.
- Apple does not keep or access a user’s credit, debit, or prepaid card information. To open more payment possibilities, you can engage with iOS app development services to integrate your brand app with Apple Pay.
- Apple also doesn’t keep track of your transactions.
- When a user enters their banking credentials, Apple decrypts the data, detects the card’s payment network, and then re-encrypts the information using a key that only the user’s payment network, bank, the bank’s approved service provider, or card issuer can decrypt.
- When a user purchases an app or web, Apple Pay gets the encrypted transaction and encrypts it again with a developer-specific key before sending the transaction details to the developer or payment processor.
- This key ensures that the encrypted payment information can only be accessed by the app or website from which the user is making a purchase.
- Furthermore, if a website accepts Apple Pay as a payment method, it must validate its domain.
Market Prospects for Apple Pay
- Apple Pay’s dominance, together with a rise in-store use of proximity payment technology, is increasing transaction volume in the United States, according to eMarketer.
- Apple Pay, which presently holds the greatest share of the proximity mobile payment market in the United States, is responsible for much of the increasing iPhone app development.
- First time a universal mobile payment software has overtaken the Starbucks mobile app, which had long topped the market while being limited to one shop.
- The adoption of mobile proximity payments by users is also expected to be positive. Apple Pay has 441 million users globally as of 2019.
- From strolling into a store to buying online via smartphones, tablets, and wearable gadgets, where and how customers make purchases has changed tremendously.
- Consumers’ willingness to pay for items is growing increasingly dependent on connected devices and the commerce they facilitate.
- There are many reasons to invest in your mobile application development for incorporating Apple Pay into your app as the payment method grows in popularity.
- Airbnb, Etsy, Ticketmaster, Target, Lululemon, and many other major firms have already made Apple Pay a viable option for customers.
Let’s look at why Apple Pay is a great mobile app integration
Three Reasons Why Your App Should Accept Apple Pay
- Consumers Have Changed Their Shopping Habits
Thanks to connected gadgets, consumers can purchase anytime, anywhere, and now while doing anything. Thanks to convenience and time savings, consumers may now “multitask commerce” as part of their daily lives. Respondents reported making purchases while commuting, cooking, and even exercising, according to a survey conducted by PYMNTS in cooperation with Visa.
Many of these transactions were made using connected devices such as smartphones, tablets, laptops, wearables, or voice-activated devices. More than three-quarters of customers (72%) made purchases every day during at least one of their daily activities.
- The House Is Now A Business Center
Consumers with internet-connected devices have additional alternatives to perform things at home that they previously could only do while away from it. Consumers can go “shopping” at a store using connected gadgets, but they are not obligated to buy anything. Thanks to connected devices, consumers have additional alternatives to make purchases during their daily activities and at home.
- Make Your Loyalty Programs More Valuable
Because most consumers would not download a brand’s mobile app, company owners and marketers must use the mobile ecosystem to borrow mobile moments from popular applications that their customers already use daily. Apps like mobile wallets.
Even if a customer does not utilize Apple Pay to make transactions, they can still use Apple Wallet. Brands may use Apple Wallet to create Passes for loyalty cards. Passes are digital representations of information that would be printed on little bits of paper or plastic if it were printed on paper or plastic. They enable users to interact with the physical environment. Images and a barcode can be included on passes, and they can be changed at any moment.
The Wallet app allows users to access and manage their passes.
Passes may be used to check-in for flights, earn and redeem awards, purchase cinema tickets, and redeem discounts. Tokens can contain valuable information such as the balance on your coffee card, your membership tier and points, your value expiration date, concert seat number, etc.
Last Thoughts
For many customers, the major value of connected devices is their capacity to enable safe, universal, and universal access to retail goods and services from anywhere, at any time, and while doing anything. Apple Pay connections will play a significant part in this transformation by facilitating smooth checkouts and streamlining the purchasing process. AppStudio can design compelling apps for your business with ApplePay integration. Reach us now.
