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Pros and Cons of Apple Pay

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Lately, mobile payment solutions have become very popular. Apple Pay’s innovative solutions let it emerge as the leading player, fundamentally changing the payment process.

Thanks to seamless integration, improved security features, and widespread acceptance Apple Pay offers various benefits. Yet, as with any other technology, it is crucial to consider both the advantages and disadvantages.

We’ll discuss the pros and cons of Apple Pay so you can evaluate and decide whether it’s the right payment solution for you. So, let’s explore Apple Pay and uncover its benefits and potential drawbacks.

What is Apple Pay?

Apple Pay is a digital Apple payment service developed. It allows users to make payments securely and conveniently using their Apple devices. Users can add credit or debit cards to Apple Wallet and make contactless payments.

Apple Pay provides enhanced security through tokens. It replaces the actual card data with unique digital tokens. Thus it ensures the privacy and protection of users’ financial information.

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How to set up Apple Pay?

Apple Pay is integrated into iOS through the Wallet app. Setting up Apple Pay is a simple process. It requires a passcode and Touch ID or Face ID.

❇️ To add a new card, you need to upload a photo of your card or manually enter the details and enter your security details. Alternatively, you can use a card linked to your iTunes or iCloud account.

❇️ Once you’re signed in, you can pay with your iPhone. Hold the device next to the contactless payment reader and use Touch ID or Face ID to authorize the transaction.

Apple Pay enhances security by encrypting card data with anonymous digital tokens. Therefore, retailers only receive anonymous data, and your card information remains protected. Google Pay and Samsung Pay use the same payment system.

Apple iPhone and Apple Watch

The main pros of Apple Pay

Apple Pay works wonders for people who value convenience, speed, and safety and want an all-in-one.

Apple Pay transactions are incredibly secure

Security is one of the main benefits of Apple Pay. The extra security layer protects against theft and data disclosure. Therefore, receive money and securely store it.

Apple Pay doesn’t transmit the actual credit card number, bank account number, or other bank card details at the time of purchase. It uses a number directly linked to the device and a generated transaction code. Google Pay and Samsung Pay use a similar fake-number system.

As a result, personal card numbers are protected from potential data breaches because, unlike credit or debit cards, neither your smartphone nor any Apple server doesn’t store them. In addition, Apple does not store transaction details, so online retailers cannot trace online purchases to specific individuals. Thus, your payment details are safe.

Moreover, Apple Pay offers a more secure payment method than PINs or passwords. It uses your unique fingerprint access and facial recognition.

Furthermore, Apple provides security through various measures, including two-factor authentication, NFC technology for short-distance payments, iCloud Security, and a device account number securely stored on the device within a specialized chip known as the secure element.

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Therefore, even if you lose your phone, strangers can’t access your mobile wallet. Also, in this case, you can suspend Apple Pay by just using the “Lost Mode” and re-enabled once found.

You don’t have to carry a physical credit or debit card with you

Traditional payment methods often require multiple credit or debit cards in a wallet. It may lead to problems such as difficulty in finding a specific physical card and the risk of losing it. If the card is lost, thieves may spend money without payment authorization.

In addition, having several credit or debit cards in your wallet can be inconvenient, especially when making payments.

Apple Pay solves these problems by consolidating all your payment information in one app. With Apple Pay, users can make fast contactless payments by only holding an iPhone near the payment terminal. You can use Apple Pay in retail stores, supermarket chains, restaurants, and other retail outlets. It ensures a seamless and efficient checkout experience.

Another advantage is the widespread acceptance of Apple Pay. It is available in 74 different countries. It makes Apple Pay a valuable tool for expanding businesses around the world.

Furthermore, Apple Pay is widely adopted, with nearly half of iPhone owners using this payment method. You can pay using Apple devices: smartphone or Apple Watch.

In addition, Apple Pay is a versatile digital wallet that allows users to store and access tickets, ID cards, boarding passes, and even car keys for compatible models. This functionality enhances Apple Pay’s usefulness beyond traditional payment transactions.

Using Apple Pay is free

Apple Pay is a free-to-use payment method. It doesn’t charge any transaction fees, regardless of the amount involved. Therefore, Apple Pay works as a cost-effective choice for businesses and customers.

Using Apple Pay itself is fee-free. However, if a customer chooses to pay with a card saved in their Apple Wallet, there may still be credit or debit card companies’ fees.

Nevertheless, customers can also pay using Apple Cash. It is a fee-free method.

Unnecessary to remember a card PIN

Today we have to remember too many passwords that safeguard one’s identity and personal information or money in debit cards from theft. Thus, Apple Pay offers an alternative.

Instead of debit card PINs, Apple Pay uses facial recognition and fingerprint identification methods, which are fast but highly accurate.

By using these efficient and reliable authentication methods, Apple Pay provides a secure and automated way to purchase products, simplifying users’ daily activities.

Unfortunately, face recognition (Face ID) and fingerprint identification (Touch ID) don’t work with other Apple devices: an Apple Watch and touch iPads like iPad Mini.

Track transaction history in the wallet app

In contrast to traditional methods like ledger sheets, Apple introduces a more convenient approach to tracking transactions.

With Apple Pay, iPhone users can conveniently track how much, where, and when they spend money through the app. Apple Wallet addresses the need for individuals to keep up-to-date with their finances by providing an accessible history of all purchases.

You can get cashback on purchases with Apple card

Goldman Sachs and MasterCard have partnered to create an Apple Card that lets you access special savings.

Apple card presents innovative features and benefits in mobile credit and payments. New users can sign up via the Wallet app. The card offers 2% cash back. It also provides 3% cashback at selected stores such as the Apple Store.

Also, the Apple Card is not subject to annual, late, or transaction fees. Combining Apple Pay and Apple Card allows iPhone users to enjoy seamless mobile payment options and save money.

Apple iPhone

The main cons of Apple pay

For all the good things Apple Pay offers, some vital drawbacks may change how you look. Here we discuss the main ones:

It only works with iPhone 6 and above

The most crucial problem is that Apple products tie users to the company. It limits their ability to use other manufacturers’ devices. Apple wallet incompatibility with non-Apple phones or other devices results in limited choice and often higher costs.

In contrast to Google Pay, which supports a wide range of devices, Apple Pay is only available on iPhones. This limited compatibility further reinforces the closed nature of the Apple ecosystem.

The same goes for Samsung Pay. You can use it only on recent Samsung phones. Moreover, it falls short in terms of security compared to Apple Pay.

Not universally accepted by all merchants

While Apple Pay has been very popular, it is worth noting that not all merchants and online merchants accept Apple Pay.

However, research shows that over 85% of US retailers accept Apple Pay. The results indicate Apple Pay payment system has widespread market adoption. Therefore, it contributes to the convenience and accessibility of using Apple Pay for most transactions.

Security gaps under certain conditions

Apple Pay offers robust security measures. Unfortunately, there are situations where it’s worth being cautious.

Public Wi-Fi connections are often insecure and attractive targets for hackers. iPhones automatically search for Wi-Fi connections, and users may unknowingly connect to vulnerable public networks and get jailbroken.

You shouldn’t use Apple Pay if you have a jailbroken iPhone. The reason is that hackers can override your transaction limits and duplicate previous contactless payments.

📚Related: The Apple Pay Contactless Limit Explained

You can’t pay if your phone runs out of battery

As simple as it may sound, sometimes phones die and, as a rule, at the wrong time. Unlike digital contactless payment methods, physical credit or debit cards do not rely on battery power.

So, if you forget to charge your iPhone and it dies in your hands at the mall, you may not be able to shop. The entire payment process depends on the iPhone being charged and properly working.

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Živilė Šarkauskaitė

Živilė is a writer with a diverse background, having worked with tech start-ups and pioneering brands across various industries. Her profound interest in progress and innovation drives her to the field of Fintech, a realm that sparks her curiosity and inspires her to share insights with others.

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Please be advised that the information presented in this article is intended for general informational purposes only. It should not be construed as professional advice from swissmoney. It is important to note that swissmoney does not act as a financial adviser, and individuals are strongly encouraged to seek independent advice from qualified legal, financial, or accounting professionals before making any decisions related to cryptocurrency investments. Furthermore, investing in cryptocurrency assets carries inherent risks, and individuals should be aware that they may potentially lose all of their invested capital.
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