The virtual wallet is far from a new concept – but Apple's new mobile payment service, Apple Pay, is a step in the direction of making this technology mainstream
Big opportunity
The scope of NFC technology is almost limitless, and has been present in Android smartphones for some time. Manufacturers such as Samsung, Sony and Nokia have all incorporated the technology into their flagship device launches since the beginning of the year. Note, however, that Apple has confirmed that it is – at least initially – restricting this new technology to just Apple Pay.
Necessary investment
Depending on how quickly the virtual wallet takes off, it's likely that smaller businesses will have to switch to NFC hardware to remain in competition with bigger brands who do offer Apple Pay in their stores. According to Gartner analyst Mark Hung, NFC readers are currently being used by fewer than 10% of merchants. NFC technology is expensive – but might be a necessary investment to keep up with larger brands.
PAN handled
Of course, vendors really shouldn't be using customer information in this way to track customer purchase behaviour, and in many ways, the development of Apple Pay is a response to this. Should this technology take off, Personalised Account Numbers (PANs) will no longer be a method for businesses to sneakily track consumer behaviour.
The future is unclear
At this stage, however, looking at how Apple Pay will affect the future of commerce is in many ways speculation. The technology may be out in the US, but it certainly won't hit the UK for another year, and much hinges on how far and how quickly this technology will be taken up by the consumers themselves.
