Apple Expecting In-App Purchases to Make Up Most of Early Apple Pay Activity

Ahead of the launch of Apple Pay tomorrow, The Wall Street Journal has posted an overview of the mobile payments service with some insight from Apple about what it expects from it over the coming months.

Apple's Senior Vice President of Internet Software and Services Eddy Cue stated that he expects the biggest share of early Apple Pay transactions to be made up by in-app purchases. With Apple Pay, users will be able to simply use the Touch ID fingerprint sensor on a device to complete a purchase for an item or service in an app. The Touch ID fingerprint sensor will also still continue to work for purchasing apps from the App Store.

applepayinapps
Cue also spoke on how the company sees its roll-out of the service:

"We’re trying to do something that I think is a game changer and it requires a lot of people to play together,” said Eddy Cue , Apple’s senior vice president in charge of Internet software and services, in an interview. “There’s a lot to do here and we have a lot of work to do, but it should be huge."

While the company's mobile payments solution will also allow shoppers to physically buy items in-store using their iPhones, many of Apple's partners have yet to receive the payment terminals needed to process transactions. However, Apple expects many merchants to upgrade their terminals in the next year which will help the service. Apple Pay will not be compatible with corporate credit cards, prepaid cards, or even store cards like Macy's popular credit card offering. Macy's spokesman Jim Sluzewski stated that he expects Apple to add support for the Macy's card eventually.

The article also notes that Apple Pay on the iPad Air 2 and iPad mini 3 will only be compatible with in-app purchases and cannot be used to purchase items in-store. This is likely due to their lack of an near-field communication (NFC) antenna, which is what the iPhone 6 and iPhone 6 Plus use to interact with compatible payment terminals. The Apple Watch will have an NFC chip when it launches early next year and will allow users to make in-store Apple Pay transactions.

applepayscancard
A report from Digiday also claims that Apple will integrate Apple Pay with its iAd business, citing sources familiar with the matter. The move would allow advertisers to embed a "tap-to-buy" button in their mobile ads, and would be similar to what Facebook and Twitter did for their services earlier this year. Apple is also said to be working in iAd's new retargeting feature with Apple Pay, which would allow retailers to push targeted ads with buy buttons to users. Apple is expected to integrate Apple Pay with iAd by the end of this year.

Apple Pay will be launching tomorrow, October 20 alongside iOS 8.1 and will be compatible with credit cards and debit cards from major payment networks including American Express, MasterCard, and Visa. Several banks including Wells Fargo, Bank of America, Capital One and more are also listed as partners.

In-store payments with Apple Pay will require the iPhone 6 or iPhone 6 Plus, and will also be supported by the Apple Watch when it launches in early 2015. All three aforementioned devices plus the iPhone 5s, iPad Air 2, and iPad mini 3 will be able to make online purchases with Apple Pay.

Related Roundup: Apple Pay
Tag: wsj.com

Top Rated Comments

thmsup Avatar
93 months ago
So no iPad Air 1 support?

Why would you even think :apple:Pay would be supported by the iPad Air 1 in the first place? It does not have TouchID.
Score: 18 Votes (Like | Disagree)
z chamber Avatar
93 months ago
Nope. No Touch ID (no NFC either).

That's why, despite having touch ID, the iphone 5S will only work for online ApplePay purchases such as described above, and not at POS terminals. No NFC

Oh man. I can just imagine some idiot trying to pay for something at the counter with their iphone 5s. :D
Score: 13 Votes (Like | Disagree)
Crusoe Avatar
93 months ago
What about people who buy their items metaphysically?

They Kant.
Score: 10 Votes (Like | Disagree)
Jacquesvw Avatar
93 months ago
.
Score: 8 Votes (Like | Disagree)
SilianRail Avatar
93 months ago
It's midnight on the west coast. Gimme the update already! :mad:
Score: 8 Votes (Like | Disagree)
blackcrayon Avatar
93 months ago
Bitcoin is rubbish. People spend lots of money on electricity and for some reason that is supposed to create a currency. Utter nonsense.

If you think that's rubbish, you should see how banks create traditional money out of nothing at all ;)
Score: 7 Votes (Like | Disagree)

Popular Stories

telsa cyberwhistle

Elon Musk Urges Customers to Buy 'Tesla Cyberwhistle' Instead of Apple Polishing Cloth

Wednesday December 1, 2021 4:01 am PST by
Tesla CEO Elon Musk has encouraged customers to buy the "Cyberwhistle" for $50 instead of Apple's much-discussed Polishing Cloth. The product page, which Musk shared on Twitter on Tuesday evening, offers a limited edition stainless steel whistle with the same distinctive design of the Tesla Cybertruck:Inspired by Cybertruck, the limited-edition Cyberwhistle is a premium collectible made from ...
iPhone SE Cosmopolitan Clean

New iPhone SE Reportedly on Track for Release in First Quarter of 2022

Tuesday November 30, 2021 8:08 am PST by
Apple plans to release a third-generation iPhone SE in the first quarter of 2022, according to Taiwanese research firm TrendForce. If this timeframe proves to be accurate, we can expect the device to be released by the end of March. As previously rumored, TrendForce said the new iPhone SE will remain a mid-range smartphone with added support for 5G:In terms of product development, Apple is...
maxresdefault

Five Features to Look Forward to in the 2022 MacBook Air

Tuesday November 30, 2021 1:51 pm PST by
In 2022, Apple is going to release an updated version of the MacBook Air with some of the biggest design changes that we've seen since 2010, when Apple introduced the 11 and 13-inch size options. In the video below, we highlight five features that you need to know about the new machine. Subscribe to the MacRumors YouTube channel for more videos. No More Wedge Design - Current MacBook...
2017 apple tv

Cyber Monday: Original Apple TV 4K Drops to $99.99 for Amazon Prime Members

Monday November 29, 2021 12:01 pm PST by
We've been tracking Apple product and accessory deals for Cyber Monday 2021 today, and now Woot is offering a solid discount on the previous generation 32GB Apple TV 4K. You can get this device in new condition for just $99.99 if you're an Amazon Prime member. Note that this sale will last for one day only. Note: MacRumors is an affiliate partner with some of these vendors. When you click a...
apple top apps games 2020

Apple Reveals the Most Downloaded iOS Apps and Games of 2021

Thursday December 2, 2021 12:05 am PST by
Along with naming its editorial picks for the top apps and games of 2021, Apple today shared charts for the most downloaded free and paid apps and games in the United States across 2021. The number one most downloaded free iPhone app was TikTok, followed by YouTube, Instagram, Snapchat, and Facebook. The top paid iPhone apps included Procreate Pocket, HotSchedules, The Wonder Weeks, and Touch...
Mac Notebook Upgrade Program

Apple Introduces New MacBook Upgrade Program for Business Partners

Monday November 29, 2021 7:38 am PST by
In association with CIT as the financing partner, Apple has launched a new Mac Upgrade Program for small businesses and Apple business partners that allow companies to easily distribute and upgrade their fleets of MacBooks at an affordable price to all of their workers. As outlined on CIT's website, shared by Max Weinbach, Apple Business Partners can distribute the 13-inch MacBook Pro,...
airpods prototype translucent

Transparent AirPods and 29W Power Adapter Prototypes Surface in Photos

Tuesday November 30, 2021 7:16 am PST by
Images of transparent prototype AirPods and a 29W Apple power adapter have been shared on Twitter by Apple device collector Giulio Zompetti. The prototypes, which appear to be either first-generation or second-generation AirPods, feature clear plastic along the stem and around the outer side of the earbud, with the normal white plastic on the inner side of the earbud. Transparent casings are ...
apple view concept right corner

Apple Planning to Replace the iPhone With AR Headset in 10 Years

Wednesday December 1, 2021 2:29 am PST by
Apple is planning to replace the iPhone with an augmented reality (AR) headset in 10 years, a process that is apparently due to start as soon as next year with the launch of a head-mounted device, according to a recent report. Concept render of Apple's rumored AR headset by Antonio De Rosa In a note to investors seen by MacRumors, eminent analyst Ming-Chi Kuo explained that "Apple's goal is...