Apple looks likely to succeed where others have failed
Apple’s iPhone 6 is expected to be announced on September 9th when the company holds its annual conference to show off new hardware – namely a new iPhone. As we reported yesterday, it looks like this time around Apple will be stepping into the payments space for sure – no more rumours, there’s actual, quite possible facts going around this time.
Surely Apple entering the space is a big deal, but it could also be nothing very important at all. After all, the world and his prospective partner of choice is jumping into bed with the idea of creating a mobile payments solution of some form. But here’s the thing, Apple could really do it. Like, actually do the unfathomable and create a mobile payments system that’s widely adopted and – here’s the bit that’s hard to swallow – widely used.
According to Bain Research, only 3 per cent of US citizens, and 7 per cent of Europeans, actually use mobile payments to buy physical goods. This worryingly low number is due to a multitude of factors: the confusing nature of various wallets, the different payment processors, the ability to add some cards but not others, the near erratic rate of merchants that support mobile payments, etc. It’s testament to Starbucks’ decision to just handle the whole payments thing themselves that they’ve managed to rack up an impressive 10 million active users of the Starbucks mobile app.
So what is Apple already doing, or does it have to do, to ensure that it outperforms any other mobile payments service on the market, and drives both retail and online spending in the process?