Apple Pay will reshape the mobile payments landscape, according to Forrester Senior Analyst Denée Carrington in new research. The well-designed aspects of Apple Pay — “the hits” — include clear ease of use, a new model for security and data privacy, and overall great timing. But, if Apple is to deliver mass-market adoption of mobile payments and become the undisputed commerce platform of choice, then there are a few key things that the initial launch of Apply Pay is lacking. These are the “misses.”

“There is a lot to like about Apple Pay, but this ship has holes,” writes Carrington. “And if not addressed, these ‘misses’ will derail Apple Pay’s ability to go mainstream.” Challenges could include:

  • An inability to scale in-person payments. Just 41% of US online adult smartphone owners have an iPhone. Merchant acceptance of Apple Pay is less than 10% of the installed base of POS terminals in the US. And even merchants with NFC capabilities don’t always turn it on.
  • Limited consumer and merchant value. Apple Pay’s biggest miss is the lack of integrated value-added services, which will be needed to sustain long-term adoption.
  • Reduced consumer insight. Apple’s approach to data privacy may be both a blessing and a curse for merchants.

To learn more about this new research, visit the eBusiness & Channel Strategy Blog.