All iPads Death of the Credit Card: How Apple Pay on iPad Could Change Business Forever

GrindedDown

macrumors 6502a
Original poster
Jun 4, 2009
636
199
Las Vegas
With the release of iPhone 6 and 6 Plus, Apple has set out to change the way we make payments to retailers with the introduction of Apple Pay. Using a dedicated, secure chipset to store our information along with the implementation of Apple Pay in all future devices like the newly announce Apple Watch, Apple Pay is poised for success in changing how we make transactions. iPhone and Apple Watch will facilitate Apple Pay, but where does iPad fit in?

Thus far, iPad has been integral to the use of mobile payment systems for businesses. The company Square even manufactured specialized hardware and software to turn iPad in to a register for accepting transactions. It had even been rumored that Apple was in talks to purchase Square at one point and its clear to see why. Apple is interested in dominating the antiquated transaction market. In order to do that, Apple needs to not only introduce a way for consumers to make payments, a la iPhone 6, but also a way for businesses to accept payments. This is where iPad and its utilization of Apple Pay comes in to play...

Square made iPad a register for businesses to accept transactions. Now, Apple is going to do the same, except this time there is no need for fancy little white dongles. iPad will have Apple Pay functionality baked right in so businesses and users can accept NFC payments from iPhone 6 and iWatch. This is the killer new feature for the next iPad iteration. This is truly going to change things.

The credit card will die a much due death, slowly, but surely with the introduction of payment systems like Apple Pay. Imagine finishing your meal at a restaurant, your check is delivered straight to your phone, you fill out how much of a tip you want to leave and the total, your server comes up to the table equipped with iPad, you swipe your phone and you're all set. No need for servers to run back and forth to swipe cards. No more risk of credit card theft when pimple faced Johnny decides to write down all your credit card information. Simple, easy, and secure.

Evidence suggests Apple will introduce a register-like function for aceepting transactions into iPad with Apple Pay. That is going to be the killer feature. It could even kill the credit card and change business forever.
 

MacInTO

macrumors 65816
Apr 25, 2005
1,171
184
Canada, eh!
In Canada, we have NFC enabled phones as well as credit cards for point of purchase (Visa PayWave, MasterCard PayPass and Amex has wireless also). I've used both methods of payment, with my phone and with my credit card.

I prefer my credit card because it is much faster. About one second with my credit card versus many seconds with my phone. The speed of the transaction is the key for me.
 

GrindedDown

macrumors 6502a
Original poster
Jun 4, 2009
636
199
Las Vegas
I agree with you. I think the speed of the transaction is one of the most important aspects of making payments. It could make or break the adoption of NFC as the new standard.

It appears that apple is trying to address this. They implied in the video demonstration of Apple Pay that you simply take your phone out, place near the register terminal while using TouchID, and you're done.

It remains to be seen if it really works that easy.

Do you think you would use your phone for payments more often if it was just as fast or faster than a credit card?

Also, whats the process like for you using NFC to make payments? (Ive never done it)
 

Truthfulie

macrumors regular
Dec 18, 2013
248
0
I wonder how restaurants are going to utilize ApplePay. Also wondering if Apple could use iBeacon to enable remote payments in place like restaurants where customer isn't right near the payment machine because unless you are in a high-end restaurants, having multiple iPads for servers isn't really a viable option.
 

MacInTO

macrumors 65816
Apr 25, 2005
1,171
184
Canada, eh!
I agree with you. I think the speed of the transaction is one of the most important aspects of making payments. It could make or break the adoption of NFC as the new standard.

It appears that apple is trying to address this. They implied in the video demonstration of Apple Pay that you simply take your phone out, place near the register terminal while using TouchID, and you're done.

It remains to be seen if it really works that easy.

Do you think you would use your phone for payments more often if it was just as fast or faster than a credit card?

Also, whats the process like for you using NFC to make payments? (Ive never done it)
I use my credit card most often because it's faster. It only require a tap of the card on the payment device. With the phone, it needs to be turned on, unlocked and the app running before I can tap.

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I wonder how restaurants are going to utilize ApplePay. Also wondering if Apple could use iBeacon to enable remote payments in place like restaurants where customer isn't right near the payment machine.
Restaurant should really have wireless payment devices where they come to you to do the actual transaction.
 

GrindedDown

macrumors 6502a
Original poster
Jun 4, 2009
636
199
Las Vegas
I wonder how restaurants are going to utilize ApplePay. Also wondering if Apple could use iBeacon to enable remote payments in place like restaurants where customer isn't right near the payment machine because unless you are in a high-end restaurants, having multiple iPads for servers isn't really a viable option.
Yeah youre kinda right, it certainly would be a decent upfront cost. I guess it depends on a number of factors. Namely, how much is the restaurant paying for credit fees, receipts, machines for processing transactions and even the small cost of time of having servers take several trips for the bill. Compare that to whatever the fees for Apple Pay might be, the cost of equipped iPads, and any software required for accepting payments and checks. May or may not be cheaper.

I guess one way to reduce it would be to have one quick pay terminal near the exit so multiples arent necessary.

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I use my credit card most often because it's faster. It only require a tap of the card on the payment device. With the phone, it needs to be turned on, unlocked and the app running before I can tap.
You know what, i have used it before, but a long time ago. They have it on some cards, but it seems to have faded away quite a bit. Apple Pay really would have to be as simple as pulling out your phone "tapping" the machine, then putting your phone away for it to work. If it does, then it could work tremendously well. No need to carry cards you could lose or get stolen and increased security because if you lose your phone, TouchID and FindMyiPhone add a lot of security benefits that cards don't.
 

bpeeps

macrumors 68040
May 6, 2011
3,116
3,020
I wonder how restaurants are going to utilize ApplePay. Also wondering if Apple could use iBeacon to enable remote payments in place like restaurants where customer isn't right near the payment machine because unless you are in a high-end restaurants, having multiple iPads for servers isn't really a viable option.
Instead of bringing out a check, they bring out a small NFC reader.
 

GrindedDown

macrumors 6502a
Original poster
Jun 4, 2009
636
199
Las Vegas
Instead of bringing out a check, they bring out a small NFC reader.
And they would possibly only need to come by once. That could mean faster checkout for customers, increased customer satisfaction and also a small decrease in time spent for staff. Could add up to a decent amount of time over a whole year.

That's just restaurants. Whole other industries may benefit. I think the biggest thing going for Apple Pay and its potential impact is the massive widespread adoption.

Could be the tipping point for NFC. Samsung copies it, then most android phones adopt similar payment standards, and before you know it (3-5 years from now), the credit card is gone.

----------

I don't know about you guys, but is anyone else excited about Apple Pay?!
 

MacInTO

macrumors 65816
Apr 25, 2005
1,171
184
Canada, eh!
Instead of bringing out a check, they bring out a small NFC reader.
Yes, one of these, it's a combination NFC reader, pin pad and receipt printer,



Y'all should visit Canada, your neighbour to the north and see what the future looks like. :D

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You know what, i have used it before, but a long time ago. They have it on some cards, but it seems to have faded away quite a bit. Apple Pay really would have to be as simple as pulling out your phone "tapping" the machine, then putting your phone away for it to work. If it does, then it could work tremendously well. No need to carry cards you could lose or get stolen and increased security because if you lose your phone, TouchID and FindMyiPhone add a lot of security benefits that cards don't.
It might depend upon the merchant whether they want that terminal or not. In something like a coffee shop where the transactions are frequent and small, it would be a good idea.

Tapping with my card is easier than with my phone. My card is smaller than my phone and it's easier to remove from my pocket. If the card is in my wallet, I can tap with my wallet and it still works - That's fun sometimes because I'm not sure which card it will take the payment from!
 

12vElectronics

macrumors 68040
Jul 19, 2013
3,927
1,222
California
I don't think NFC will take over until at least 9/10 merchants accept it. And I don't mean big box stores. Small businesses will have to get on board. Otherwise, people will still pay with a credit card.
 

miketheappleguy

macrumors regular
May 18, 2014
119
1
With the release of iPhone 6 and 6 Plus, Apple has set out to change the way we make payments to retailers with the introduction of Apple Pay. Using a dedicated, secure chipset to store our information along with the implementation of Apple Pay in all future devices like the newly announce Apple Watch, Apple Pay is poised for success in changing how we make transactions. iPhone and Apple Watch will facilitate Apple Pay, but where does iPad fit in?

Thus far, iPad has been integral to the use of mobile payment systems for businesses. The company Square even manufactured specialized hardware and software to turn iPad in to a register for accepting transactions. It had even been rumored that Apple was in talks to purchase Square at one point and its clear to see why. Apple is interested in dominating the antiquated transaction market. In order to do that, Apple needs to not only introduce a way for consumers to make payments, a la iPhone 6, but also a way for businesses to accept payments. This is where iPad and its utilization of Apple Pay comes in to play...

Square made iPad a register for businesses to accept transactions. Now, Apple is going to do the same, except this time there is no need for fancy little white dongles. iPad will have Apple Pay functionality baked right in so businesses and users can accept NFC payments from iPhone 6 and iWatch. This is the killer new feature for the next iPad iteration. This is truly going to change things.

The credit card will die a much due death, slowly, but surely with the introduction of payment systems like Apple Pay. Imagine finishing your meal at a restaurant, your check is delivered straight to your phone, you fill out how much of a tip you want to leave and the total, your server comes up to the table equipped with iPad, you swipe your phone and you're all set. No need for servers to run back and forth to swipe cards. No more risk of credit card theft when pimple faced Johnny decides to write down all your credit card information. Simple, easy, and secure.

Evidence suggests Apple will introduce a register-like function for aceepting transactions into iPad with Apple Pay. That is going to be the killer feature. It could even kill the credit card and change business forever.
That would require the assumption that enough people own an iphone 6. When the majority own something other than an iphone.
 

Freyqq

macrumors 601
Dec 13, 2004
4,022
172
Instead of bringing out a check, they bring out a small NFC reader.
You know, maybe the iPad's Apple pay is for retailers. You can use an unmodified iPad to do payments. So, a customer would just tap their iphone to the server's ipad, and the transaction is complete.
 

mtneer

macrumors 68030
Sep 15, 2012
2,890
2,053
With the release of iPhone 6 and 6 Plus, Apple has set out to change the way we make payments to retailers with the introduction of Apple Pay. Using a dedicated, secure chipset to store our information along with the implementation of Apple Pay in all future devices like the newly announce Apple Watch, Apple Pay is poised for success in changing how we make transactions. iPhone and Apple Watch will facilitate Apple Pay, but where does iPad fit in?

Thus far, iPad has been integral to the use of mobile payment systems for businesses. The company Square even manufactured specialized hardware and software to turn iPad in to a register for accepting transactions. It had even been rumored that Apple was in talks to purchase Square at one point and its clear to see why. Apple is interested in dominating the antiquated transaction market. In order to do that, Apple needs to not only introduce a way for consumers to make payments, a la iPhone 6, but also a way for businesses to accept payments. This is where iPad and its utilization of Apple Pay comes in to play...

Square made iPad a register for businesses to accept transactions. Now, Apple is going to do the same, except this time there is no need for fancy little white dongles. iPad will have Apple Pay functionality baked right in so businesses and users can accept NFC payments from iPhone 6 and iWatch. This is the killer new feature for the next iPad iteration. This is truly going to change things.

The credit card will die a much due death, slowly, but surely with the introduction of payment systems like Apple Pay. Imagine finishing your meal at a restaurant, your check is delivered straight to your phone, you fill out how much of a tip you want to leave and the total, your server comes up to the table equipped with iPad, you swipe your phone and you're all set. No need for servers to run back and forth to swipe cards. No more risk of credit card theft when pimple faced Johnny decides to write down all your credit card information. Simple, easy, and secure.

Evidence suggests Apple will introduce a register-like function for aceepting transactions into iPad with Apple Pay. That is going to be the killer feature. It could even kill the credit card and change business forever.
That would require everyone who owns a credit card today to own an iPhone or Apple Watch. That's very unlikely to happen unless Apple opens up the Apple Pay protocol to other hardware makers too.
 

GrindedDown

macrumors 6502a
Original poster
Jun 4, 2009
636
199
Las Vegas
That would require everyone who owns a credit card today to own an iPhone or Apple Watch. That's very unlikely to happen unless Apple opens up the Apple Pay protocol to other hardware makers too.
Agreed to some extent. I feel that by Apple incorporating these features into these devices now and pushing forward with it in future iProduct iterations will cause a tipping point in the industry of NFC. This tipping point of Apple integrating simple mobile payment solutions into their devices may mark the beginning of the widespread adoption of NFC as a more legitimate payment solution.

Up to this point NFC and mobile payments has enjoyed some success, but it's been pretty modest. The adoption rate is not widespread because people own different devices, or people need to purchase extra devices to utilize mobile payments like acquiring Squares hardware.

Now that Apple has begun to integrate these systems directly in to their products, additional hardware manufacturers may begin to do the same. Give it a few years and we may see NFC payments become the new standard. The timing couldn't be more perfect with all these credit card hacks that have been going on.

----------

You know, maybe the iPad's Apple pay is for retailers. You can use an unmodified iPad to do payments. So, a customer would just tap their iphone to the server's ipad, and the transaction is complete.
Bingo!

----------

I don't think NFC will take over until at least 9/10 merchants accept it. And I don't mean big box stores. Small businesses will have to get on board. Otherwise, people will still pay with a credit card.
Very true, but this looks like this could be the beginning of that. Right now the entry barrier for small businesses into NFC payments is to purchase expensive NFC capable terminals, appropriate software that can be pricey, and still have to pay fees.

Apple could make the entry barrier for small businesses as simple as owning an iPad.

Of course, as was said, people own different devices, so Apple would have to open up Apple Pay. It's possible that may happen. If Apple makes a fee even from android users by using Apple Pay, It just might make sense to open it up.

Time will tell...
 

MacInTO

macrumors 65816
Apr 25, 2005
1,171
184
Canada, eh!
Very true, but this looks like this could be the beginning of that. Right now the entry barrier for small businesses into NFC payments is to purchase expensive NFC capable terminals, appropriate software that can be pricey, and still have to pay fees.
Merchants will have to replace their hardware anyway. The US is heading towards chip and pin cards by the end of next year (hopefully). Might as well replace them with terminals with NFC capability as well. This is what Canada did five years ago.

http://www.forbes.com/sites/tomgroe...re-credit-cards-with-chips-coming-to-the-u-s/
 

Gincoma

macrumors 6502
Sep 10, 2013
286
0
We will still have cards 10+ years from now....not everyone can afford a device or want one....it'll gain traction in 2 or 3 years and become a norm in 5 years but just like checks (at least in US) we will still have cards around for awhile
 

12vElectronics

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Jul 19, 2013
3,927
1,222
California
Grindeddown, you're right. Hardware and software is expensive. Most small businesses will not spring for it. Apple could provide the equipment for free or a very reduced cost to get this NFC program up and running. Long run, Apple will make a killing. It will become a whole new business for them. Could he the replacement for the dead iPod and dying iPad.
 

GrindedDown

macrumors 6502a
Original poster
Jun 4, 2009
636
199
Las Vegas
We will still have cards 10+ years from now....not everyone can afford a device or want one....it'll gain traction in 2 or 3 years and become a norm in 5 years but just like checks (at least in US) we will still have cards around for awhile
Yeah I agree, I don't think cards are ever going to disappear completely. Just like you said, people still use checks. In fact, I agree with everything you just said.
 

GrindedDown

macrumors 6502a
Original poster
Jun 4, 2009
636
199
Las Vegas
Grindeddown, you're right. Hardware and software is expensive. Most small businesses will not spring for it. Apple could provide the equipment for free or a very reduced cost to get this NFC program up and running. Long run, Apple will make a killing. It will become a whole new business for them. Could he the replacement for the dead iPod and dying iPad.
Haha, I mean man oh man is Apple gonna make a killing off of this. You're very right though! Small businesses haven't been able to access this technology very easily. Thats about to change. I think it will mostly change because of word of mouth marketing. iPhone 6 is all over the news. When Apple Pay is released, people will start talking about it. Then Apple Watch will be released. The conversation hits a sort of fever pitch. Now, even small business owners at mom and pop shops who aren't tech junkies are going to hear about this stuff. Then widespread adoption begins. It will probably be a year before it really even starts to pick up good steam.
 

linkgx1

macrumors 68000
Oct 12, 2011
1,638
243
I'm not sure if ApplePay can even change it.

BUT I do think that eventually most MAJOR retailers will accept NFC. The Wally World's and Targeys.... Any big box retailer will, most franchised mall stores and the like. It's going to be very hard with the mom and pop shops.
 

s2mikey

macrumors 68020
Sep 23, 2013
2,482
3,613
Upstate, NY
That would require the assumption that enough people own an iphone 6. When the majority own something other than an iphone.
Right? Glad someone also gets this. I do not and will not ever have an iphone. Love my iPad and Mac Book but I refuse to overpay for a cell phone. So.... We just get the stuff for free then if we have no iphone? ;)
 

ckc

macrumors regular
Nov 13, 2010
108
10
Evidence suggests Apple will introduce a register-like function for aceepting transactions into iPad with Apple Pay. That is going to be the killer feature. It could even kill the credit card and change business forever.
Not unless everyone who uses a credit card has an iPhone.

Here in the UK we already have smart card, touch and pay but they have been very slow to catch on and the take-up is nowhere near what the banks were forecasting a year ago,

Also if I was to choose touch and pay I would prefer to do so using my card than my iPhone.
 

12vElectronics

macrumors 68040
Jul 19, 2013
3,927
1,222
California
Haha, I mean man oh man is Apple gonna make a killing off of this. You're very right though! Small businesses haven't been able to access this technology very easily. Thats about to change. I think it will mostly change because of word of mouth marketing. iPhone 6 is all over the news. When Apple Pay is released, people will start talking about it. Then Apple Watch will be released. The conversation hits a sort of fever pitch. Now, even small business owners at mom and pop shops who aren't tech junkies are going to hear about this stuff. Then widespread adoption begins. It will probably be a year before it really even starts to pick up good steam.
There's another topic that has not been brought up. ALOT of my customers are Android users. In fact, more of them are Android than Apple.

I duno, just a point I had to make..
 
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