The Hits And Misses Of Apple Pay: What You Need To Know

"Our vision is to replace [the wallet] and we're going to start by focusing on payments." Those were the words of Tim Cook, Apple's CEO, on September 9, 2014 as he unveiled Apple Pay. Although the initial version of Apple Pay doesn't live up to the vision of replacing the wallet, it is a significant advancement in mobile payments. Apple Pay launches at a time when the US payments marketplace is in turmoil: the frequency and scale of security breaches are on the rise, issuers are beginning their migration to chip-enabled cards and mobile payments are still quite nascent — even after significant investment and a range of competitors that have come and gone. It is with this backdrop that this report will provide an overview of Apple Pay and how it is different than other mobile payment solutions. It will provide an analysis of both the hits and misses of Apple Pay, its prospects for long-term success, and what it all means for eBusiness and Channel Strategy professionals at financial institutions and merchants.