Apple Inc. (NASDAQ:AAPL) is the midst of all the action and drama surrounding the mobile payments these days. Both merchants and technology firms know that whoever gets a long lead at the start will be very hard to catch upto. This has resulted in a nail biting compettition in the spehere of mobile payments.
On Bloomberg, Jordan Bettman who is a principal at Bain Capital Ventures, expressed some of his thoughts on how Apple Inc. (NASDAQ:AAPL) with its NFC payment method, Apple Pay, is expected to emerge out of all this mess. He explained why CurrentC, which is a platform that merchants are offering their customers, is really attractive for them owing to low fees.
” I think we have a mobile payments war going on and it is going to take some time to flush itself out. I would not bet against Apple Inc. (NASDAQ:AAPL), and I think that CurrentC and MCX [Merchant Customer Exchange] have their work cut out for them, but I will say this that the idea that merchants would take interchange from 1.5% for the largest merchants, 2%-3% for the smallest merchants down to close to 0% for ACH [Automated Clearing House], which is what they are suggesting with CurrentC. That is a big value proposition to merchants[…],” said Bettman.
Apple Inc. (NASDAQ:AAPL) will have to provide more incentives to the merchants. Bettman proposed that one way in which Apple could go about this is to share the data, that the company receives from all the mobile payments, with the merchants. This will give them at least some reason to bring Apple Pay back in their stores. Merchants who have adopted CurrentC have boycotted Apple Pay since the two platforms are competitive.
The playing field doesn’t look very easy for Apple Inc. (NASDAQ:AAPL) right now, but the whole war game has just started and Apple isn’t the company that gives up that easily. Innovation is what drives this tech giant and there is no easy way to fight that if you are Apple’s competitor.
“[…] Less than 10% of merchants have NFC terminals. Consumers still need an iPhone 6 or 6S, so that number is still relatively small, but now there are over a million people using it. They are making a bet that if you deliver great products to consumers, they will use it. It’s a bet that Apple Inc. (NASDAQ:AAPL) has always made,” said Bettman.
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