Emerging Tech - Apple Pay

Robert D. Hof reviews Apple Pay in the MIT Technology Review in March 2015. Apple Pay is a service that uses a clever combination of technologies to makes it practical to use your smartphone as a wallet in everyday situations. The concept of mobile payments around a long time before Apple, but as Apple defines themselves according to strategic positioning, the article depicts how this version is significantly easier and more secure than its predecessors.

Apple Pay was born from the companies strive for sustainable competitive advantage. This service could be an advantage that rivals struggle to match. Apple taps into their resources in a variety of ways to leverage their app. They utilized their business power to bring banks, retailers and payment processors on board. In addition, the extent of Apple’s control over both the software and the hardware in the iPhone, which exceeds what Google can do for Google Wallet even on Android phones, allowed it to combine those technologies into a service discernibly easier to use than any other. Once consumers are using Apple Pay every day, in addition to other Apple services like iCloud and iTunes, Apple pay increases switching cost for the consumer and ensuring the iPhones appeal.

Apple can argue an increase in security by use of their app. The mobile payments employ near-field communication to eliminate the possible exposure of your card number by merchants. Apple Pay combines these technologies with the iPhones Touch ID fingerprint sensor, protecting your electronic wallet in the case of phone theft. Ahead of Apple’s Apple Pay release, mobile and online payments loyal of PayPal took out a full-page ad in the New York Times, warning consumers of Apple’s security practices by alluding to a recent leak of photos stolen from celebrity iCloud accounts. The ad's tagline read, "We the people want our money safer than our selfies. PayPal, protecting the people economy," specifically referencing the recent commotion surrounding what Apple framed as a "targeted attack" against iCloud accounts belonging to celebrity iOS device users.

There are other variables that can deter a consumer from using Apple Pay. It is only available in the United States. The use requires an iPhone 6