Market Analysis Apple Pay

Group A

MKT 4525-476

February 8, 2015

Services Marketing Project

Market Analysis: Apple Pay

The induction of Apple Pay into the market has shown an economic benefit to both consumers and retailers alike. Apple device owners are already apt to use the latest technology advancement offered by Apple Pay because it comes at no additional cost to them. However, there are significantly more benefits to consumers than the zero price tag. Apple Pay is accepted at over 220,000 retailers and just recently USA Technologies will be accepting it at 200,000 self-service vending machines (Wolford). The new payment system adds to convenience and security for the customer, no more carrying cash or worrying about compromised credit cards. The convenience factor alone is expected to drive additional sales for the vending machine industry. Consumers will be more likely to make purchases where Apple Pay is accepted due to the lower security risk and out of pocket expense associated with fraud. The system is centered around Near Field Communication and has the ability to encrypt credit card and personal information to insure the merchant does not see any sensitive information. The new payment system is also a win for big and small business owners, not only will merchants see an increase in transactions but will see less liability if fraudulent charges are made if they have an NFC terminal (Bertke). Apple Pay is proving to be an economic benefit to the consumers it is marketed to and also the businesses offering the payment service.

Cultural factors have played a significant role in Apple’s success. Through its infiltration of popular culture, Apple shaped a generation of people with the invention of the iPod, iPhone, and iPad. Overnight Apple products became a necessity, something millions of people had to have. Apple’s brand name carries a large amount of mainstream appeal, which has created a loyal customer base. With the introduction of Apple Pay, this trend in popular culture...