Free Essay on Apple Pay - Trend Analysis

Consumer behavior

Consumer behavior is the study of the ongoing processes involved when individuals or groups select, purchase, use or dispose of products, services, ideas, or experiences to satisfy needs and desires. Consumer behaviour varies with age, gender, social class and income, ethnicity, geography, lifestyle and family structure. Attitude and perception also affects consumer behaviour.

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Apple Pay has brought about a greater experience to its users. It is an easy payment method to use. Most importantly, Apple Pay does not charge shoppers or retailers fees for the new service. It only takes a portion of existing credit card transaction money. This payment method also saves on time since it is quick and efficient. The phone links to the card with a unique code. Apple Pay does not store any information once a transaction is done. During purchase, the phone sends a unique code to the merchant. This code can only be used once and is meaningless to hackers. The use of fingerprints to authorize a purchase provides extra protection (Brockman & Cvetkovic, 2015).

Trend Analysis

Apple Pay is a mobile payment service that lets users pay for purchases in-store and online with their phones and Apple watches. Apple Pay announced its services on September 9, 2014, during the iPhone 6 event. The company came up with an Application Programming Interface (API) which app developers used to build Apple Pay checkout into their apps. Apple pay app diffused and later became a trend after partnering with American Express, MasterCard and Visa. In 2013, the Apple Company approached several big banks without disclosing the names of the other banks (Lowry, 2016). On December 17, 2015, Apple announced the launching of Apple Pay with fifteen major banks in China.

KFC, Chilli's and Starbucks launched Apple Pay in 2016. ExxonMobil launched the app on March 8, 2016, allowing its customers to pay for gas or car wash directly from their phone. Apple Pay expanded its service in Canada where it covered most debit and credit cards. Apple Pay services spread very fast making it known in most countries. Additionally, the iPhone and iPad integrated the payment services applications for the Apple store, Starbucks and Ticketmaster. Apple Pay achieves at least one million users each week. This method of payment has been greatly considered by most people since its charges are very low compared to the credit and debit cards (Zhu & Li, 2016).

When people learnt about this app, they decided to try it out and see how it works. This therefore, helped it spread to different individuals who were curious about it. With time this app diffused into the market and became a trend. However, not every individual who installed the app used it oftenly.

Impact of Apple Pay on Individual Identity

Apple Pay has come up with beacons which enable merchants to share coupons, codes and other communication methods on how to run stores. This app has made it easier for individuals to pay for their goods and services. Once a customer has their credit card installed in their phone, all they have to do is hold the phone near an NFC reader and approve the transaction with their fingerprint then the payment is processed within a few seconds. This process is simpler compared to the idea of swiping cards (Winestock & Jeong, 2014).

Apple Pay is secure since one does not have to carry their credit card and this minimizes cases of stolen number. The use of the device account number, instead of the credit card number, has helped in withholding personal details. It is considered to be the most secure payment method (Das, & Finin, 2017). Additionally, Apple Pay does not track shopper transactions neither does it store the data making it more private to use. Similarly, it eliminates breaches by avoiding the provision of the card details during a transaction.

Finally, Apple Pay protects your personal information, transaction data and credit or debit information with its leading industry security. The app contains all the owner's information and threfore, no one can use it for any purchases unlike credit cards. It does not provide information that will be traced back to you making it secure to use. The only information shared is between an individual, the merchant and the bank. Apple Pay is said to be the most secure payment methods to individuals and the society at large.

References

Brockmann, T., Stieglitz, S., & Cvetkovic, A. (2015). Prevalent Business Models for the Apple App Store. In Wirtschaftsinformatik (pp. 1206-1221).

Das, P. K., Joshi, A., & Finin, T. (2017, May). App behavioral analysis using system calls. In 2017 IEEE Conference on Computer Communications Workshops (INFOCOM WKSHPS): MobiSec 2017: Security, Privacy, and Digital Forensics of Mobile Systems and Networks. IEEE.

Lowry, C. (2016). What's in Your Mobile Wallet? An Analysis of Trends in Mobile Payments and Regulation. Fed. Comm. LJ, 68, 353-353.

Winestock, C., & Jeong, Y. K. (2014). An analysis of the smartphone dictionary app market. Lexicography, 1(1), 109-119.

Zhu, X., Song, B., Ni, Y., Ren, Y., & Li, R. (2016). Seizing Innovation Opportunities. In Business Trends in the Digital Era (pp. 213-225). Springer Singapore.