Security: Apple Pay is more secure than plastic credit and debit cards. Any merchant who chooses not to accept Apple Pay is taking a serious risk at this point. I would not want to be the retail executive who explains to my iPhone carrying customers why I forced them to swipe a credit card at my store in December 2014 and then had my security systems breached. Based on recent history, this scenario is likely to play out, and it will be very ugly.
On-device commerce: Apple Pay in app payments are magical. As someone who has studied transaction flows, worked on many mobile payments products and considered virtually any payment interaction you can imagine, the ease and simplicity of using Touch ID to complete an on-device transaction brings an automatic smile to my face. The well documented gap between commerce revenue on iOS vs Android is about to widen significantly.
Retailers: You’re starting to see who the creative, curious, bold physical and e/m-commerce retailers are by who supports Apple Pay and other mobile payments, loyalty and coupon schemes. I am long retailers who embrace new technology through pilots and tests and then double down where they are seeing success. I am short retailers who repeat the mistakes of other industries such as music, clinging to outdated technology and customer engagement models that are proving to be broken. These retailers will eat sand while their competitors smoothly ride a beautifully cresting technology wave.
Financial institutions: If you’re wondering who the big winners are in the Apple Pay scheme, look no further than your latest issuing bank e-mail, card network website or TV ads during the weekend sports games. Card issuers and networks are literally blanketing the airwaves to market their participation in Apple Pay. Apple has embraced their tokenization and security scheme, preserved the traditional payment routing paradigm and increased the likelihood that the status quo, high interchange model stays in place.