How Apple Pay Changes the Way We Shop

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We’ve got more news on Apple this haunted Halloween Friday! But it’s far from scary…

Apple recently unveiled its new Apple Pay feature, which allows iPhone 6 and iPhone 6 Plus users to make payments cardlessly at over 220,000 retailers across the United States. With more than 21 million iPhone 6 and iPhone 6 Plus units sold within the first month of the product’s release, and sales expected to stay strong throughout the holiday season, Apple Pay could change the way many users shop, both in-store and online.

Settling the Bill Has Never Been Easier

Using Near Field Communication technology (NFC), Apple Pay allows users to hold up their phones to a special reader while they’re at the checkout and confirm the purchase with the fingerprint reader. Customers put their credit cards on file with the iTunes store beforehand and can select which card they want to charge their purchase to at the time of the transaction. The secure program generates a one-time use 16-digit number unique for each transaction. In addition to the security provided by fingerprint confirmation, this innovative feature reduces the chance of credit card theft and identity fraud, both of which remain a major security concern for many payment gateways.

Although Google Wallet and other NFC payment methods have been on the market for a while now, analysts expect Apple Pay to become much more widespread and successful. This is because Apple has the support of the three biggest credit card networks in the United States: Visa, MasterCard, and American Express. They also expect to initiate compatibility with over 500 financial institutions by early next year, making Apple Pay versatile and available for most consumers.

Cash In on Consumers Cashing In

The new Apple Pay feature can have many implications for recommerce. It adds yet another feature to the iPhone 6 and iPhone 6 Plus to encourage users with older models to trade in and make the switch. Apple Pay will be available for online purchases on the announced iPad Air 2 and iPad Mini 3, meaning users that want to integrate their payment methods may be trading in older models of their iPads as well. This means big profits for a business that possess an effective buyback program. If you want to learn more about how recommerce can improve your business, contact us today.

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Justin Finkelstein

Co-Founder & CTO at Sourcely; server swiss army knife; flavor architect; the wildcard.