How Apple Pay Could Change the Retail World

Apple has now sold over 10 million iPhone 6 and iPhone 6 Plus smartphones since the handsets first became available last week. Each comes with the companyEUs new electronic payments service, known as Apple Pay. The service could revolutionize how customers shop, with Apple promising to plant a stake in the heart of plastic credit card readers.

Although other players have tried to launch their own mobile payment applications, such as Google Wallet, Apple Pay launches with an enormous head start on its competitors. The reason: The payment details stored in the more than 800 million user accounts in Apple's iTunes store, and the tens of millions of phones that will soon be in the hands of consumers around the world. As a result, Apple Pay may prove to have a significant impact on retailers, enterprises and financial institutions.

Big Boost to NFC

AppleEUs decision to adopt near field communication (NFC) for its payment system is likely to be a huge boost for the technology. Retailers who may have been hesitant to invest in NFC-capable registers will be secure in the knowledge that 10 million consumers are carrying the technology in their pockets, and 90 percent of smartphones worldwide will now be equipped with NFC chips. Additionally, the mobile payments market is expected to reach $1 trillion by 2017.

In addition to convincing brick-and-mortar retailers that NFC is worth the risk, Apple Pay should also provide a big boost for the e-commerce world. By storing shoppersEU credit card information and allowing them to pay for items with the push of a button, Apple Pay hopes to relieve customers of the need to continually re-enter their information on multiple sites.

Not every entrenched player is going to be happy with the brave new world Apple Pay promises to usher into existence, however. Apple...

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