It’s an early battle, so it is premature to say who will win in the long run. Apple appears to have created an ingenious and obviously superior mobile payments system. But retailers control their own checkouts — they get to say who pays with what, not Apple. And Wal-Mart, the world’s largest retailer, is backing the retailers’ system via a company it is partnering with called MCX.
Apple Pay is an elegant, universal, simple-to-use system that can be used by any retailer. You just touch your finger on the iPhone Touch ID fingerprint scanner, wave your phone near the NFC checkout device at the store, and approve the payment.
What Apple gets and what no one else in the industry does is that using your mobile device for payments will only work if it’s far easier and better than using a credit card. With CurrentC, you’ll have to unlock your phone, launch their app, point your camera at a QR code, and wait. With Apple Pay, you just take out your phone and put your thumb on the Touch ID sensor.
Let’s face it, many people resist change at every opportunity. Innovators must have a serious sense of bull dog to get things into the main stream. As Steve Jobs once said people don’t know what they want until you show it to them and Apple has been very successful at that. I believe that Apple Pay and systems similar to it will eventually replace our old magnetic strip credit cards and maybe even cash to a large degree. Those who are battling against this trend will eventually be forced to come around.
I am old enough to remember the VHS vs Betamax wars of a few decades ago. This was during the time that video recording via magnetic tape was coming on the scene. Eventually VHS won the day and Betamax disappeared. The same thing will likely occur with this latest technology.