Apple Pay launches in the UK and it’ll be interesting to see how it takes off. As well as allowing people to pay for items in store, Apple Pay enables online purchases via supporting apps at the click of a button.
We can hear the collective sigh of many software developers at the thought of yet another task on their list. Exactly where will it be in your organisation’s priorities?
Will you be waiting to see how demand grows or have you already invested in it as a ‘brand building‘ investment? Initially Apple Pay will only be available for in store and in-app purchases in the UK. Retailers such as Argos, British Airways, Ocado and Topshop will be among those supporting Apple Pay for in-app purchases.
From an online performance point of view this is yet another third party to add to the escalating list, which could impact on your app’s performance.
Once signed up to Apple Pay on iPhone or iPad, consumers can go to any app that supports it, and make a purchase with easy one-touch checkout capabilities.
Unlike Apple Pay in store, the online version does not require NFC available on iPhone 6, 6 Plus so it is also compatible with iPad Air 2 and iPad mini 3 devices. Card details are linked to a specific Apple device in the same way they are for iTunes accounts. Apple Pay has the potential to become huge for in-app (and later online) purchases as it removes the hassle from buying on a mobile; no need to complete lengthy forms or type in shipping information.
According to payment solutions provider Adyen’s quarterly Mobile Payments Index, iPhone devices account for more than one in three browser-based mobile transactions, and are used for 10% of all global online transactions.
In terms of the UK market, we lead the way when it comes to mobile. In Q2 2015, 44.8% of online payments in the UK were made using a mobile device and this is expected to pass the 50% mark for mobile transactions during 2016. [Source]
As reported by Banking Technology, Myles Dawson, UK country manager, Adyen says “Our findings show that with the sky-high popularity of mobile payments and high penetration of iPhones in the market, in the UK Apple Pay offers a unique opportunity for businesses to connect with an affluent shopper demographic that is already used to making purchases by mobile.”
Google is set to launch its own mobile pay system, Android Pay, later this year and Barclaycard has already introduced its bPay system.
Watch this space to see how popular Apple Pay becomes in the and find out how well prepared retailers are to offer this new payment option in-app and eventually online.
For more information on safeguarding ecommerce performance against third parties read our blog.