How ‘Apple Pay’ can threaten Google Wallet and Paypal

By Zia Askari

Close on the heels of its iPhone 6 and iPhone 6 Plus launch, Apple has just announced ‘Apple Pay’ – a true next generation ready way to make in-store and mobile payments using near field communication (NFC) technology.

With the help of NFC Apple Pay can enable a new way to make payments much more easier process and in the way also create a big challenge in front of the existing payment ecosystems such as Google Wallet or Paypal.

With Appe Pay already getting support from about 500 organisations, paying in stores or within apps will never be the same now. Now payments can happen with a single touch.

Apple Pay will change how customers pay with breakthrough contactless payment technology and unique security features built right into the device. Customers can use your iPhone, Apple Watch, or iPad to pay in a simple, secure, and private way.

Apple Pay in iPhone 6

Now paying in stores happens in one natural motion — there’s no need to open an app or even wake your display thanks to the innovative Near Field Communication antenna in iPhone 6. To pay, a customer will just have to hold the iPhone near the contactless reader with your finger on Touch ID. You don’t even have to look at the screen to know your payment information was successfully sent. A subtle vibration will confirm the payment.

Competitive Landscape

As of now the mobile payment market is primarily driven by Google Wallet and Paypal among others. This announcement by Apple is set to further harden the rivalry among Apple, Google and PayPal and other mobile-wallet enablers – all betting on a future when digital wallets will replace cash and credit cards – as being put by EMarketer Inc. this market is estimated to be worth $118 billion by 2018, from $3.5 billion this year.

Google Wallet on the other hand is a mobile payment system developed by Google that allows its users to store debit cards, credit cards, loyalty cards, and gift cards among other things, as well as redeeming sales promotions offers on their mobile phone. Google Wallet can also utilise near field communication (NFC) to make secure payments fast and convenient by simply tapping the phone on any PayPass-enabled terminal at checkout.

And similarly PayPal, the company, which has more than 157 million active buyers and sellers completing transactions via Internet. PayPal also offers card readers for smartphones and a cash register for stores. As there is a global increase in the smartphone users, mobile-enabled payment is set to further heat up and better ease of use at the customer level will decide the long standing winners.