Category: Mobile Payments

Apple could have trouble engaging consumers in the Japanese market

Apple is having trouble finding traction in the Japanese mobile payments space. The country served as the launch for a pilot project from the company. The project focused on mobile payments, using the iTunes platform as a way to make purchases. Recently, Apple unveiled its new iPhone 6, which will be the company’s first official foray into the field of mobile commerce. In Japan, the device was received with relatively modest interest.

Mobile commerce has been around for more than a decade in Japan

Mobile payments have been around in Japan for more than a decade. The country is often considered to be the birthplace of mobile commerce, largely due to the high adoption of smartphones and other mobile devices among Japanese consumers. As mobile devices became more common, Japanese consumers began to demand new mobile-centric services. As such, businesses began embracing the mobile space and accepting payments that were made from these devices.

Consumers have a great deal of experience with NFC-enabled mobile devices

Many mobile devices in Japan are equipped with an NFC chip called Felica. This chip was first introduced to the market in 2004 and now has a home in nearly every mobile device sold in the country. The iPhone had been one of the very few devices sold in Japan that did not have a Felica chip installed in it. This will change when the iPhone 6 hits the market, but whether or not it will be able to compete with other, more well established mobile payments platforms is uncertain.

Japanese consumers show modest interest in the iPhone 6 and its capabilities

Japanese consumers have had years to get comfortable with mobile commerce. They have come to expect many things from the mobile platforms that they use on a daily basis and platforms that do not meet these expectations do not last long in the market. Apple has limited experience when it comes to mobile commerce, and this has placed the company in a precarious position when it comes to engaging Japanese consumers.

Apple Pay will put the electronics giant in direct competition with services like Google Wallet and PayPal.

Apple Inc. announced on September 9 that it would be introducing a mobile wallet service entitled Apple Pay to its new iPhone 6 mobile devices, which were also unveiled at the event last Tuesday, and the company revealed that its digital wallet is integrated with its fingerprint ID security system and Passbook credential-storage app.

Apple Pay lets iPhone 6 users pay for purchases in-store with their smartphone.

Users will also be able pay for purchases using the service online though apps. According to Apple, using its payment systems is more secure and convenient than using a debit or credit card. Since Apply Pay has been designed to fit in with Apple’s Passbook app, which already enables users to store merchant loyalty cards, store coupons and tickets, the service is fairly simple to use.

To utilize the mobile payments technology within physical stores, users merely need to wave their smartphone in front of a compatible terminal to pay with one of their credit cards stored on the app. The payment is sent to the terminal via near field communication, also known as NFC technology, which is made possible through a chip that has been embedded in the new phones.

Currently, tens of thousands of retailers across America will accept it. Some of these include well known companies such as Macy’s, Target, Whole Foods Market, Starbucks and McDonald’s. This will give iPhone 6 users the ability to buy just about any item with a simple wave of their smartphone.

In addition, Apple’s partnership with payments processing start-up Stripe will help small app developers to power their transactions using Apple Pay.

The Apple Pay mobile wallet could make mobile payments more popular.

Aside from retailers, Apple has teamed up with three major credit card companies, Visa, MasterCard and American Express. These deals may help Apple succeed in the mobile payments space where other companies have so far had no luck.

According to the CEO of Visa, Charles W. Scharf, “Lots of companies have tried this before, but our security and the Apple payment experience will be the two biggest drivers here.” If more Apple users begin to use their smartphones to make payments, this could push other companies with digital wallet services to make similar deals with credit card companies and retailers.

At the moment, many analysts believe that if there is any company that can persuade consumers on how valuable a mobile wallet can be, Apple is the one to do it.