Apple makes it easier to surf, pay and jam out
Mobile system expands reach with loyalty, reward cards
Apple’s mobile payment system, Apple Pay, is expanding its reach within and beyond the U.S.
The software giant’s proprietary payment system that lets you make retail payments with your smartphone — and Apple Watch or iPad, for that matter — is set to top 1 million locations in the U.S. next month, the company said Monday during its Worldwide Developers Conference in San Francisco.
Apple Pay, which launched in October 2014, will also be available to users in the United Kingdom in July, too, said Jennifer Bailey, Apple’s vice president of Internet services.
In the U.S., Apple Pay this fall will add Discover credit cards, which are held by 50 million consumers. New retail outlets set to use Apple Pay include BaskinRobbins, Dunkin’ Donuts, J.C. Penney and Trader Joe’s.
Already on board: American Express, MasterCard and Visa, Citi, Bank of America and PNC, and retailers including Macy’s, Bloomingdale’s, Walgreens, Duane Reade, Whole Foods, Staples and Disney stores.
Consumers are embracing instore mobile payments made with a smartphone instead of a credit card or cash; payments are expected to more than double this year to $8.95 billion, up from $3.5 billion in 2014, according to eMarketer.
While Apple expands its reach, it’s hoping to lighten your real world wallet. Apple Pay will add store loyalty cards and rewards cards to Apple Pay as part of the upcoming iOS 9 release, due in the fall after a July beta release.
The loyalty card play could strengthen Apple’s position in comparison to competition such as the in-development Merchant Consumer Exchange, a group of retailers such as Walmart, Target and Kmart that are working on their own CurrentC payment system.
More than half of U.S. smartphone users (57%) want access to loyalty and reward programs within a mobile wallet, said Sucharita Mulpuru, an analyst with Forrester.
The research firm predicts that U.S. mobile payments will top $142 billion by 2019.
“Adding loyalty rewards is a first step in building a more integrated mobile wallet,” Mulpuru said.
Later this month, Pinterest will add buy buttons that let you use Apple Pay within the app to buy goods from retailers including Neiman Marcus.