Boston, MA 10/08/2014 (wallstreetpr) – Apple Inc. (NASDAQ:AAPL) has reiterated its desire to revolutionize the mobile payment platform with its new service ‘Apple Pay.’ A push for the space is expected to be a major threat for the likes of PayPal and Google Inc. (NASDAQ:GOOGL)’s Google wallet that over the years have acted as the dominant forces.
Apple Trying to Attract Merchants
One of the loopholes that Apple Inc. (NASDAQ:AAPL) will try to solve with Apple Pay is launching a service that is cost effective and most of all, attractive to merchants. Solving these two problems is expected to give Apple Pay an advantage against PayPal and Google Wallet that are believed to have underperformed on the same. Apple will not present any major threat to big credit cards but will certainly affect the ability of emerging players to gain market-share in the space.
Apple has already partnered with American Express Company (NYSE:AXP), MasterCard Inc. (NYSE:MA) and Visa Inc. (NYSE:V) as it looks to launch one of a kind service. Apple Pay service in iOS devices is expected to do a lot in advancing the standardization of the mobile payment infrastructure. Morgan Stanley (NYSE:MS) expects Apple to struggle a bit outside the U.S with its new service mostly because the market outside is wide open with alternatives fighting for market share.
Apple Pay Main Challenges
There is still a lot to play for in the U.S for Apple Inc. (NASDAQ:AAPL) in terms of the quality of service and convenience that PayPal and Google Wallet might not have tapped-into. One of the other changes that Apple will have to grapple with is the fact that Google’s Host Card Emulation may provide one of the best ecosystems that should be attractive to users and merchants. Apple also has a lower penetration level outside the U.S.
Growth opportunities in the mobile payment platform are endless for Apple, taking into consideration its financial backing that it can use to accelerate penetration and growth.
