Gartner Research

Apple Pay Needs to Go Beyond User Experience and Security

Published: 04 December 2014

ID: G00271058

Analyst(s): Sandy Shen, Penny Gillespie

Summary

Apple Pay offers a frictionless user experience while maintaining high security, yet fails to offer good value for consumers and merchants, so we will see low adoption in the short term. Product managers of mobile payment solutions can refine their offerings by taking lessons from Apple Pay.

Table Of Contents
  • Impacts

Analysis

Impacts and Recommendations

  • Apple Pay designed a frictionless user experience by combining iTunes, Passbook and Touch ID, thus lowering the adoption hurdles for consumers
    • Registration Process
    • Payment Process
  • The combination of Secure Element and tokenization based on EMVCo specifications offers security and simplicity in the solution platform
    • SE and TSM Architecture
    • Host Card Emulation and Tokenization Architecture
    • Apple Pay's SE and Tokenization Approach
  • Apple Pay calls for the need to build the commercial ecosystem to drive mobile payment adoption

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