Ms. Marianne Lake, the chief financial officer of JPMorgan Chase , the largest card issuer in the country said in a financial conference at the New York headquarters that she was excited about the company’s partnership with the technology giant Apple following the announcement of Apple Pay by Timothy D. Cook on Oct. 14th  at Cupertino, California. The involvement of JPMorgan Chase in Apple Pay was under the wraps till the debut of Apple Pay was finally put on the table. She was delighted about the company’s investment and involvement in Apple Pay since it has the potential to transform payments in the long run.

The newly announced Chase – Apple partnership allows the Chase customers to make a purchase with the touch of a finger. The Chase customers can make payments in-store and purchases within the app at selected merchants. The ubiquity of Apple Pay combined with the reach of Chase is designed to sway the consumer’s choice and dramatically accelerate the adoption of mobile payments.


The upcoming Apple Pay feature is expected to assume a central role in the financial universe and influence the customer’s default choice for payments. It is the future, a game-changer at the leading edge of the payments trend having the potential to accelerate the adoption of mobile payments. Will this threaten the existing players in the ecosystem and replace them altogether?  What makes the partnership with Apple so attractive? Apple Pay received overwhelmingly positive reception from the merchants. Apple’s penetration is such. There has been enormous pressure to make technological improvements in the current digital payments which is on the verge of collapse. The magnetic stripe authentication is stone age.  Today’s is the tokenization – getting to the heart of Apple’s announcement. This takes out the need for the merchant to know your credit card numbers. The biggest retailers in the industry like McDonalds have signed up for this initiative.

Many rival mobile wallets like Google checkout have tried similar initiatives and failed in the past.  This should start changing fairly quickly with the next generation iPhone 6 and iPhone 6 plus featuring the latest technology. Will Apple succeed in persuading the merchants to adopt mobile payments?

  1. 220,000 US businesses apparently support NFC-based contactless payments .The merchants need to install a hardware that can read the wireless signal carrying the payment information.
  2. The simple one-touch mobile payment flow is designed to sway the consumer’s choice. It’s incredibly easy to use – tap the device to make a purchase
  3. Biometrically authenticated mobile transaction can reduce fraud
  4. Apple’s clout with the retailers and sheer size of the market can lead to swift adoption of mobile payments and grab lion’s share of the market
  5. Apple pay charges a lower rate compared to the credit card networks


Thus the long awaited payment entry of Apple has sparked a healthy competition among the financial institutions. The uptake of mobile payments has been sluggish in the past. We gotta start somewhere and Apple has done it the right way with the end users.

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