A few weeks ago Apple presented its most recent keynote, and once all this information was processed, the new tools tested and once we became familiar with the new handsets it’s time to sit down and analyze the implications of these facts. Obviously fans of the company from Cupertino want to get their hands on the new devices: iPhone 6, iPhone 6 Plus and the Apple Watch. But we also have to take into account the revolution in the world of payments which has been started since that day.
The long awaited NFC has finally been integrated into the iPhone and while this isn’t any novelty in the sector, as Google has been integrating it into its handsets ever since Nexus S, and while many find it hard to recognize this fact, this is the moment when finally the way in which payments are made will change.
But what is NFC and how has Apple reinvented it?
NFC (Near Field Communication) is nothing more than a secure data transfer system for wireless communication on short distances. This isn’t new, in fact it was approved as a standard back in 2003, and there are countless cell phones which already use it. But as in many other cases it lacked the final push for it to enter society and for it to be used on a massive scale, and this is where Apple has come in with its new system Apple Pay.
Apple Pay
Apple Pay is very easy to use as it will be integrated with the new iPhone 6 and iPhone 6 Plus. The user will be identified with his fingerprint and then simply he will have to place the handset by the payment device (POS) in order to complete the payment. Al this without having to bring cash, credit cards, a wallet and without having to sign anything on a sale ticket.
Apple Pay is linked to credit cards and this means it will require an initial configuration where sending a photo of the credit card will be enough. Apple will take care of validating it with your bank and will include it in your Passbook, and most importantly, it won’t keep a copy of it, as the new Apple system creates “virtual cards” with their own numbering associated with your physical cards and all these will be linked to your Apple ID, so that if you lose your iPhone you won’t have to call your bank to cancel the cards, all you’ll have to do is enter your iCloud account and block your iPhone.
Deals with large companies
And how will Apple make this product popular among consumers? Very easily, by signing deals with large companies such as Disney, McDonald’s, Staples, Subway, Macy’s… apart from guaranteeing support for Visa, MasterCard and American Express cards. Apple says that its system can be used in over 220,000 stores in the US and soon in Europe and the rest of the world.
Apple's security poker
I can imagine that from the very first moment that Apple made this announcement, hundreds of hackers from all over the world have been thinking about obtaining an “irregular” benefit from this system. As for Apple, the company has thought this through very well and has put together an infrastructure made up from various layers which will make life difficult for anyone who will want to steal information related to the payments.
This new technology is based on four pillars:
- NFC: secure data transfer system.
- Touch ID: fingerprint reader included in the iPhone 5S, 6 and 6 Plus.
- Secure Element: security chip which saves your encrypted data safely.
- Passbook: a management system of tickets and credit cards associated with the Apple ID of the user.
Now everything makes sense and it seems that Apple has closed the cycle, but we will have to wait and see if this will be as successful as it is expected and above all if the system is as safe as promised...
One more little detail...
As shown by Apple paying with Apple Pay can also be performed using its brand new Apple Watch. You only have to place it near the POS and the payment will be concluded.
Where do advertising professionals enter the scene?
This gives us new ideas as to where publicity companies can enter, everything which is aimed at streamlining the payment is focused on increasing consumption and if this will be so then companies will be looking for new publicity systems which will be nearly perfect and will enable them to get to know the customers better. Here all the new systems of geocontextualization enter the fray, such as beacons, which we use at SONATA and which will soon be on everyone’s mind...
