Apple Value Proposition

Question 1: What is the value proposition that Apple Pay offers consumers? How about merchants?

Value proposition is what sets a product or service apart from competitors. It is the products, services, or features that the company provides that add value to customers. Apple Pay’s value proposition to consumers is mainly the ease of use and peace of mind with security that they provide free of charge.

Apple Pay reduces the need for consumers to grab a card out of their wallet or purse every time they need to make a purchase. It also reduces interaction time between consumers and associates at stores, hopefully preventing the inevitable promotions pushed on customers at checkout. Ideally, it makes purchasing goods easier from every aspect.

Many consumers worry about their information being stolen during transactions or that information will be stolen from Apple’s database. However, Apple has implemented several security measures to keep consumer information safe at all points during and after a transaction. The customer inputs their credit card information into the Wallet app on your iPhone, and then you can choose to set up Apple Pay directly from the Wallet app where all your cards are already stored. To pay at a register the customer has to put their fingerprint on the home button for verification. According to Apple and the textbook, once the phone is verified and the transaction begins, Apple Pay uses your specific device number coupled with a unique, one-time transaction code to create a digital token. This ensures that consumers’ card numbers are never stored on the device, in Apple’s servers, or given to merchants. After the digital token is created it is encrypted and sent to Apple for verification. Then the costumers’ credit card institution verifies available balances and the transaction is either approved or denied. Apple Pay also does not sell or store transaction information, which is a common practice among credit card companies for an income

They offer online payments, card-swiping solutions, and mobile payments in stores that use PayPal. Apple Pay has emulated similar services by implementing website payments like PayPal has done for many years through websites such as eBay and Amazon. No customer credit card information is transferred during transactions. That information remains secure with PayPal. However, they too have high transaction fees for merchants. Last, both technologies allow users, both merchants and consumers, to track all purchases.

Question 4: What strategies would you recommend that Apple pursue to assure widespread consumer adoption of Apple Pay?

First, Apple should continue to integrate themselves into e-commerce websites and applications. When Apple Pay first rolled out, they did not have any presence in this area. Now they have become more present in these areas. I personally use Door Dash and Uber Eats to have food delivered to my home. I can now pay for my orders using Apple Pay. This allows for easier, quicker transactions since I already had my card information in the Wallet app on my iPhone. Many other apps like Grub hub, Lyft, Sephora, and Ticketmaster also support Apple Pay. According to a Computer World article published in 2016, Apple announced that more than 200,000 websites were going to begin to support Apple Pay. This is important because few consumers use virtual wallets to make payments on websites but continually ask