COIT20250: Apple Pay - E-Business Systems Report, Term 1, 2019

This report offers a comprehensive analysis of Apple Pay, a mobile payment system developed by Apple Inc. It begins with an introduction, highlighting its security features and potential for future dominance in the purchasing system market. The report then delves into the market history, contrasting Google's initial efforts with the adoption of NFC technology by retailers. It explains the technical workings of Apple Pay, including its use of tokenization and dynamic security codes, emphasizing its fraud-prevention measures. The report also covers the acceptance of Apple Pay in various stores, in-app purchases, and transportation systems. It examines the UK market, including contactless payment trends and the launch of Apple Pay. Furthermore, the report discusses Apple Pay's competitors, such as Barclays bPay, Android Pay, and Samsung Pay, and explores future trends in seamless payments, including Amazon One-Click and the integration of loyalty cards. Finally, it addresses how Apple Pay enhances accessibility and discusses potential developments in the payment landscape.

Apple Pay

Introduction
• It is a product of Apple Inc.
• It is a unique system for payment which
is very secured for customers and banks

Introduction
• Helps in fraud elimination
• This application is secured and there
are possibilities that it would become
the most popular purchasing system
used in future

Market history
• Google had taken the first
initiative, retailers did not
contribute (Burge 2015)
• Only 2.4% of all the
retailers had NFC
• Chip and PIN deadline had
been October 2015
• Retailers had updated POS
systems

How it works
• It automatically uses cards
on file for the customers
who had set Apple’s iTunes
as the default payment
account
• Customers can add more
cards
• The company verifies the
account data with card
issuers

How it works
• It uses tokenization for removing card
number used for payment
• When a user adds credit card, Apple
does not save the card number, it
generated a device only account number
(Burge 2015).
• Every time it is used, company makes
use of a number that is used for one
time payment (Beznosov and Kim 2017).

How it works
• A dynamic security code is also
provided
• Eliminates the need of static
security code
• Merchant never gets to see the
name, security code or card
number of the card holder.

How it works
• Users of iPhone 6 having an
account of iTunes enter their
security code for continuing.
• Users can also add extra
account by taking a picture
of passbook (Burge 2015)
• Provides a secured and error
free payment, compared to
• other applications

Acceptance of Apple Pay
• In various stores
• In various In-app purchases
• Transportation in London

In store
• Used by high street retailers in UK
• Potential of being many more because it uses
NFC readers which gives access to technology
for contactless (Beznosov and Kim 2017)

In-app
• Option of extra payment

London Underground
• Tickets or Oyster cards are not needed
• Used in Apple watches and iPhone
• User create an account on the website of TfL in order
to view journeys along with their payments
• Users find it simple for applying for refunds when
they do not want a product or service