Apple Pay paying off, but watch the Watch

Written by on April 24, 2015 in Opinion with 0 Comments

Old pocket watch.New research from 451 shows just how compelling Apple products are. Much has changed from the 1980s, when MacWorld used to attract audiences of 30,000 mavericks who cheered Steve Jobs onto the stage and worshipped a small grey box. Now, Apple is a mixture of serious and leading edge. Essentially, the company has won the battle for people’s hearts and minds. Apple Pay is currently causing PayPal a world of hurt, largely on the perception that it is secure.

Almost half of the respondents to the 451 survey said that they planned to use Apple Pay, while of those who did, 66 percent were satisfied with the service. What is interesting – apart from the power of the brand – is that because Apple focused on security in its proposition, the fact that it did so increased the perception that mobile payments are secure. The feeling that they are more secure than conventional credit cards was up 26 points on last year, with a quarter of respondents believing them to be more secure.

This actually bodes well for the industry as a whole. A brand such as Apple can persuade and educate communities beyond their own customer base. As a result all providers of mobile payments will benefit, even if they lose some market share to Apple, the pie gets bigger.

The sound you hear is a group of analysts redoing their forecasts for the mobile payments market.

The only possible fly in Apple’s ointment at the moment is the Watch.

Because it is more than a watch, it uses more power. To solve that, when it thinks it is not being used, it goes into power save mode, which means the screen goes black. You can only ‘activate on wrist raise’ according to Apple, which means you cannot glance down during a meeting to check how badly you are over-running. It remains to be seen how must ‘wrist raise’ is required and whether it will be more of a shake.

Irritating it may prove to be, and the watch will continue to attract the scorn of some – Ellen DeGeneres recently tweeted that we have been checking the time on our phones for centuries. Having it on our wrist. Genius.

Apple, for the time being, has the influence and brand to pull off the watch in the same way that they are steamrolling the payments arena. What is nice, though, is that the watch and its critics and comedians will keep us amused for the next few months.

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About the Author

About the Author: Alex was Founder and CEO of the Global Billing Association (GBA), a trade body focused on the communications sector. He is a sought after speaker and chairman at leading industry conferences, and is widely published in communications magazines around the world. Until it closed, he was Contributing Editor, OSS/BSS for Connected Planet. He is publisher of DisruptiveViews and previously BillingViews. .

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