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BizReport : Ecommerce archives : December 15, 2014

Expert: What Apple Pay means for retailers

First it was PayPal disrupting how people paid for goods online, then that blip about Bitcoin and now everyone is talking about Apple Pay and how it will change how consumers buy products online and in physical stores. One expert weighs in on what Apple Pay means for retailers.

by Kristina Knight

Kristina: Everyone is talking about Apple Pay. Why is this solution getting so much mileage?

Bruce Ernst, Vice President, Product Management, Monetate: It's Apple. It's mobile. It's cool. It represents a new way of doing everyday things - which is always an attention driver. What Apple is doing actually isn't new for Apple -- they're taking their customer base and doing something radically new with it. Think back to the iPod. It was never about the music player itself, it was about the store and the surrounding ecosystem. It was about disrupting the music industry. And Apple Pay is about disrupting the payment industry. They have a loyal customer base that they are capable of activating very quickly.

Kristina: What are the benefits of Apple Pay - and other mobile payment solutions - for retailers/brands?

Bruce: Convenience. It creates a friction-less purchase experience for consumers. There's an entire school of thought that said credit cards are better than cash because they eased the process and removed unnecessary friction. Now, we're streamlining that process further by eliminating credit cards. Another beneficial aspect is the security. Amidst all the retailer security breaches, now the retailer will not have access to your credit card number if you use Apple Pay.

Kristina: What are the drawbacks at this point?

Bruce: Adoption. It will be similar to how nervous and slow consumers were to pay online. Online payment forms were scary, but people eventually came around.

Kristina: Are we at the point when brands should throw all their might behind a mobile payment or should they continue enhancing their mobile experience first?

Bruce: Brands should consider payments a single factor among many in the overall mobile experience. However, it does allow is for brands to confidently start expecting transactions to take place on mobile, since it's so much easier now.

Image via Shutterstock

Tags: apple pay, mobile marketing, mobile payments, Monetate, near field communications, online payments

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