Case Study - Apple Pay 2.edited.docx - Background Apple has...

This preview shows page 1 - 3 out of 5 pages.

Background Apple has proven to be a leader in the innovation of technology on multiple platforms. In October of 2014, Apple launched its new mobile payment and digital wallet service called Apple Pay. Apple Pay is a proprietary iOS mobile payment system that allows the consumer to make purchases at any retailer or with the use of in-app transactions. With over 220,0000 compatible merchants, Apple Pay services are available in major retailers Whole Foods, McDonald, and Walgreens. Apple pay has a two-part hardware-based security solution that requires users to use their fingerprint for each transaction in addition to a second two-part security option that requires authorization from a built-in chip that’s only available on iPhone 6 and newer models (Davidson, 2014). The consumer's confidential financial information is stored in Apple Pay's secure components. There are currently over 300 banks in the United States including Capital One, Wells Fargo and Bank of America that are presently supported by Apple Pay. Aimed at changing the way consumers shop and designed to give the consumer a better experience, Apple wanted consumers to move from their physical wallets crammed with credit cards to a world in which their Apple Watch's or iPhones would suffice as payment options. Strategic Plan One: Competition Apple has continuously proven to its consumers that they can create innovative products on multiple technological platforms. Tim Cook, chief executive of Apple, announced that Apple's Vision for Apple Pay is to replace the things that consumers hold in their wallets, and see where core technology could be applied to add value (Gupta & Wayne, 2015). However, by creating innovative products, apple Pay is facing tougher competition and will need to discover creative ways to distinguish itself amongst others in the industry. Apple Pay must prove their mobile-
wallet app is a better mechanism to use than the existing payment systems.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture