Gartner Research

Apple Pay Revives Interest in Mobile Payments but Success Is Not Guaranteed

Published: 15 July 2015

ID: G00274052

Analyst(s): Penny Gillespie, Sandy Shen

Summary

IT application leaders should be wary; despite Apple's loyal customer base, its nice customer experience and strategic alignment with EMV, Apple Pay creates more questions in an already complex payment ecosystem as it revitalizes NFC, fuels payment wars and adds much needed functionality to iOS 9.0.

Table Of Contents
  • Impacts

Analysis

Impacts and Recommendations

  • Apple Pay's use of NFC technology, previously perceived as dead in the U.S., has revitalized NFC and rekindled a payment technology battle among merchants that IT leaders must weather
  • Apple's latest addition of store credit and loyalty cards will increase Apple Pay's value proposition, though adoption won't suddenly rise as merchants' onboarding will take a while; IT leaders should monitor Apple Pay's new feature rollout and user adoption
  • The additional Apple Pay changes planned for iOS 9.0 are an improvement, but, even when coupled with the Apple Pay customer experience and strategic alignment to new EMV POS terminal requirements, are not sufficient to induce massive behavior changes in consumers; IT leaders should feel no immediate rush to migrate to mobile payments

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