Apple Pay is the tech giant’s mobile payment software for card-free, cashless purchases.  The app allows users to make online purchases through contact-less technology, both in-app (iOS) and on-site. It also supports Windows and is a perfect business payment portal of any scale.Advantages and DIsadvantages of Apple Pay

Advantages and Disadvantages of Apple Pay

The mobile payment software, exploiting Apple’s vast user network, provides merchants with a way to provide a convenient way to conduct business to their iPhone-totting consumers. Apple Pay is a good add-on to its payment platforms for major e-commerce suppliers. Customers are likely to experience smoother, uninterrupted interaction with your company with a broader choice.

For purchasers using Apple devices, the app is free, whereas retailers are not charged a processing fee. As for convenience, shielding credit card information from prying eyes is assured by the most valued brand in the world. This data is unavailable even to retailers and app users.

Some of the advantages and disadvantages of apple pay has been discussed below:

Advantages of Apply Pay

1. Payment

After shoppers have their credit card stored on the iPhone, they only need to keep the phone near an NFC scanner, use the iPhone’s Touch ID to accept the purchase using their fingerprint, and the payment is processed within a few seconds.

The approach is easier than the conventional swiping procedure for credit cards, which normally involves: swiping a card and then choosing debit or credit, providing a different id, and affixing a signature.

2. Convenient

For your customers, more payment choices equal more ease. Apple Pay will be a more seamless means of transacting business with you for your customers who are already using an Apple computer, so there is less delay in the buyer’s path.

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They would also enjoy the quick Apple Pay checkout; there is no need to enter the detailed information of the credit card.

3. Secure

Since there is no requirement for a credit card to be present, the risk of a stolen number is smaller. In comparison, Apple does not use the credit card number to make the purchase, but uses a token to complete the transaction called the “device account number,” which further decreases the likelihood of stolen credit card information.

Apple Pay is an adaptation of the EMVCo standard that is regarded as the most reliable payment system by many industry experts.

4. No Internet Required

For you to use Apple Pay, you don’t require an internet connection. It can be used anywhere and roaming charges should not accumulate. It can still be accessed even if your phone is in airplane mode.

5. No Extra Fees

Apple is not charging fees for this new program to retailers or customers. But it takes a majority of the existing transaction rates on credit cards. That’s also why Apple has spent the last two years trying to hammer out all the complexities of this operation for all the major credit card companies and banks.

6. Privacy

Apple will not monitor the purchases of customers and store the details. This provides more privacy. The use of device account numbers against the credit card often makes the purchase with the stores much more confidential as they do not see the identity of the customer and other information, such as the billing address.

7. Low Risk

Credit card hacks have recently been suffered by major stores including Target and Home Depot. By eliminating the use of credit information as part of the purchase, Apple Pay avoids that.

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With Apple Pay, a system account number is used to process the transfer, along with a transaction-specific dynamic authentication token. So Apple never exchanges the real credit or debit card numbers with retailers or transmits them with the order.

Cons of Apple Pay

1. Software Failure

A product release bug may often impact the running of the payment service or some other issue with the installed software may arise.

2. Stability

Apple Pay looks fantastic now but as millions of shoppers start using it will it scale? Will an Apply Pay transaction process be applied in reality as easily as it is in the demos? If not, adoption will have an impact. Shoppers are unlikely to wait while the iPhone attempts to validate the purchase.

3. Acceptance and Pop-up Texts

Not all distributors use a mobile payment terminal, so you have to hold your wallet for shopping. Also, after making the payment, an embarrassing text can pop up on your phone screen.

4. Adoption

It may be difficult to get customers and retailers to use the app, as it requires customers to have an iPhone 6 and NFC terminals to help retailers.

5. High Fees

The service is currently being released without any added costs. But is this going to continue? Some analysts question if credit card firms would avoid splitting the payments with Apple, which could lead to higher merchant fees, which could hurt adoption.

6. No Online Shopping Support

You can use Apple Pay to purchase apps and buy other app-based products, but online shopping is not supported by the it. Since a huge fraction of iPhone 6 users are not likely to shop online, the service is highly limited until Apple attempts to prioritize smartphone shopping or adds online shopping in the immediate future.

Sources:

(Last Updated On: November 22, 2020)
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