Lounge Ruminator

Finally, Apple Pay is in Australia. FINALLY. Since first purchasing the iPhone 6 and Apple Watch, I had been itching to use it, but alas, no banks or credit unions in Australia would collaborate with Apple for some time.

Upon hearing of its exclusive availability through ANZ (other than with American Express, which technically had it first), I rushed immediately into ANZ in Martin Place to create an account. “Wow”, you may be thinking, “Why on Earth is it such a big deal? You must be some sort of ridiculous fanboy”. Well, yes, I am quite the Apple fanboy, but it’s not simply about having the latest Apple service or iThingy. I’m not the only one who has switched banks either; plenty of others have and now the other big banks are reconsidering their relationships with Apple. Everyone wants more customers.

Whilst mobile payment solutions using “near field communication” (NFC chip) technology have existed for some time, particularly in the Android world, Apple Pay delivers some serious benefits and the sort of refinement that comes only from deep consideration and observing the market first. Apple is often accused of never ‘inventing’ anything (which is false, but whatever), but instead it often sits back, observes the market, then swoops in with a more elegant solution that smooths the rough edges of earlier digital technology. Apple Pay is another great example of this, as it goes further in convenience, security and overall customer experience.

Apple Pay, first of all, can be added to the Wallet app on iPhones and Apple Watches. Particularly in the case of the watch, it is super-convenient to simply wave your wrist over a payment terminal after double-tapping the side button. A reassuring tap on the wrist (and beep if not set to silent) lets you know that your payment has been successful. Let me tell you, this morning I encountered quite a shocked staff member at Thrive in Australia Square as I purchased a smoothie. His jaw dropped as the payment was approved from my wrist. Naturally, I had to explain the magic.

The next great part of the Apple Pay story is security when paying for goods in a bricks-and-mortar shop. Whereas signatures, pins, magnetic strips and card chips all have their security flaws and are susceptible to scanners, Apple Pay deals with these issues in two key ways. First, when you add your card, your numbers are not sent to the cloud, instead stored in what’s called a “secure element” on the phone’s processor. If your phone is stolen or goes missing, there’s no need to replace the original card provided by your financial institution, as no private details are displayed on-screen or associated with your online accounts (e.g. iCloud). Second, when you purchase goods using Apple Pay, no card numbers are sent to the merchant. Instead, a process called “tokenisation” sends a randomly generated number, which is recognised and approved at the other end.

Last but certainly not least, Apple Pay can be used online (web and mobile apps). When you go to purchase an item online, Apple Pay springs to life, requesting your fingerprint through the iPhone’s Touch ID system, which is built into the Home button. Some of the popular apps that already support Apple Pay online, for example, include of course the Apple online store, Airbnb, Houzz, Groupon and Fancy. The number of supported apps and services will only grow.

I, for one, have been very impressed with Apple’s execution of Apple Pay. It’s quick, easy and leaves a lot of retail staff gobsmacked, and it’s fun to watch people fumble change after you’re already walking away with your smoothie. In Australia, as opposed to in the U.S., we’re also very fortunate to have had such a widespread adoption of tap-payment terminals. It’s now accepted here, and the big banks’ combined effort and investment in rolling out this technology ultimately explains why they were so unwilling to negotiate with Apple — they have to pay Apple a small fee to facilitate the service, which luckily does not carry over to the customer. The one concerning fact, I find, is that so many people are unfamiliar with Apple Pay and similar tap payment solutions. Quite simply, Apple could still do a lot more to educate people about the benefits of this great service and how readily available it is for use. It’s convenient and it’s secure, which is great for everyone.

I can’t wait to see what’s in store for Apple Pay. With talk about using credit and debit cards on public transport readers, it would be exceptionally cool to simply wave your wrist as you walk onto a bus or through railway turnstiles.

It can only get better from here. If you’re with ANZ and you’re not using Apple Pay with your iPhone or Apple Watch, I ask you, “Why?!”.

Image credit: Apple Australia (2016)