Case Study 5

What is the value proposition that Apple Pay offers consumers? How about merchants?

For consumers, Apple Pay offers convenience, security, privacy, no additional cost, and adoption by a large number of merchants.  For merchants, Apple Pay offers wide-spread adoption among consumers, more efficient consumer payment process (no waiting for card approvals, no slips of paper), and security.

What are some of the limitations of Apple Pay that might prevent its widespread adoption?

Apple Pay only works with iOS devices beginning with iPhone 6; it does not allow merchants to use the payment process for additional marketing and advertising purposes; requires the purchase of NRC point of sale terminals.


What advantages do the Square and PayPal mobile card-swiping solutions have in the mobile payment market? What are their weaknesses?

Square and PayPal mobile device card readers are quick to install, inexpensive, and reliable for taking mobile payments from consumers.  They suffer from the same security limitations as any magnetic card reader device; they still require the consumer to carry a card.


What strategies would you recommend that Apple pursue in order to assure widespread consumer adoption of Apple Pay?

Apple needs to get more merchants on board, and should consider modifying its Apple Pay so that merchants could market during the payment process.  Without merchant participation, Apple Pay will take many more years to achieve acceptance.