2016-10-25 Tue

Apple CEO Tim Cook says that Apple Pay is where the future is headed to transform cash payments into digital formats. He believes that people today do not like cash payments that much. Apple Pay was introduced in 2014 for users to store their credit cards, debit cards, and gift cards and pay at checkout in stores by using their iPhones. Samsung and Google are also trying to introduce similar products.

Initially, they had to ask banks and retailers to sign up for the service. Over the past 2 years, they have managed to get many banks, stores, and ATM locations onboard. They also announced that they would collaborate with FeliCa, a Japanese mobile-payment standard for introducing Apple Pay in Japan.

The drawbacks of the product are that Apple Pay must be linked to plastic to work and that they are only compatible with Apple’s own products. This many not help in eliminating cash completely. The use of Credit Cards and Debit Cards will be reduced after the introduction of Mobile payments.

Cook believes that going forward; Apple Pay will become a major part of the company’s business. Moreover, a transaction charge of 0.15% is applied for using Apple Pay in the US. Also, it charges an undisclosed fee on the Banks that use the service.