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article imageOp-Ed: 10 potential concerns with Apple Pay

By Murray Newlands     Oct 20, 2014 in Business
Apple Pay is rumored to be the next big thing in tech but there are many concerns. Along with several other companies in the space, there are many potential security flaws.
Apple Pay is the company’s upcoming mobile payment platform due out within weeks. Some large retailers have agreed to accept it, and right now, that total could be listed here within a few lines.
The question isn’t, “Will customers cast aside their physical wallets?” Most people expect there to be a widespread acceptance of electronic money. But when, and is this the right moment? More than 50% of adults in the US own smartphones, and iPhones account for half of that market.
Proving security and trust are some of the largest hurdles for Apple right now. Just hope that it is more secure than Google Drive, which has seen incidents of leaked data this summer. Some believe there are thousands of potential security flaws in Apple Pay and millions of potential hackers that will be taking advantage of the loopholes in the system and user that aren't security conscious.
Apple Inc.
Here is a list of things we can say about Apple Pay:
1. Facebook’s friend-to-friend payments will make Apple nervous.
According to this article, Facebook’s Messaging app is the most-downloaded item in the iOS store. The app was an aggressive move towards something we have already seen with Google, with the Google Wallet. Thanks to Andrew Aude, the Stanford student who discovered Facebook’s intentions, we see the reasoning behind the company’s purchase of WhatsApp for 16 billion, and the heavy push towards the Facebook-wide adoption.
But we already have Venmo, Square Cash, and the rest, isn’t Facebook’s arrival late? Well, not when you’re the biggest and most popular player on the team.
2. EBay will respond.
In fact, Paypal already has. Because Paypal is almost as large as its mother company, Ebay, both have seemed reactive against their competition, even when it hasn’t performed 1 day.
3. Too much, Apple.
I don’t mean price, I mean putting its hand into too many figurative pots. Let’s look at the iPhone 6’s selling point: “Better in everyway”. Classic advertising move, but perhaps more illustrative of the hopes Apple has for Apple Pay and other new features, than a confident appraisal of the device itself.
The hardware industry is changing; look at the news that HP will be splitting into two companies, one to focus on printers for the average computer user and one to focus on servers and cloud computing technology for businesses. We know this, but somehow Apple is leading the crusade.
Apple's Newest iPhone Lineup | FindTheBest
4. Not so future-thinking.
In the early 90s, online shopping came after a general acceptance of the Internet as a medium of exchange. It seems natural to have the need filled after people started buying computers, and not before. Apple Pay looks like it is covering a lacuna rather than innovating and creating new futures. Is this all speculation? From a certain angle, it is not.
Businesses still have the incentive to stick with B2C shopping carts and other services with proven track records, or those which accept bitcoin.
5. Apple needs more exciting PR.
A mobile payment platform called “Pay” is nothing like the first iPhone. Just from an advertising standpoint, how do you sit back and tell people to expect long lines for something like this? You don’t. Unless you can fabricate something that’s the equivalent of the selfie, exchanging money will look like exchanging money and nothing more.
6. Sometimes we need a break.
This should be self-explanatory. You’re a student, or mother, or grandmother, and sometimes your battery dies, or your phone doesn’t get the best data reception. The time we get back when we turn off our phones when driving, or when on a date, is rewarding. Sometimes we need a break.
7. More data to sell (and steal).
Let’s not encourage hacking or stealing, but future users should demand proof of the advertised “secure” payment system. The reason we see government agencies and Google rewarding tip-offs when something goes wrong, is because something will go wrong eventually. A surgery will have casualties even when the studied method is perfected and carried out flawlessly.
Reports of Uber misusing its data are already out. Will Apple Pay become another case?
8. No one can register the speed of Silicon Valley.
Apple Pay created ripples in the tech community, but just how fast did they go? I think incredibly fast, considering it’s an unreleased service playing around in a risky arena. As opposed to common sense, which says the slower a thing moves, the more an observer standing can see it, Silicon Valley works differently. The faster a product moves from R&D to the shelves, the better we can paraphrase, adopt, critique, etc.
9. Read the fine print.
There is a giant gray cloud.
On closer inspection, the gray cloud isn’t a network or file-sharing cloud, it isn’t a storm coming, or something Godzilla would appear from. The cloud is a mass of Apple’s attorneys in gray suits with restless legs.
10. What about Bitcoin?
The price has fallen, the adoption is barely past Redditor sponsored shops, and it hasn’t brought the revolution.
Still, I want to beg the question, “What about Bitcoin?” Let’s play a little game and see which will last the longest: the community-driven digital currency or the one using fiat currency controlled and managed by a single large corporation.
This opinion article was written by an independent writer. The opinions and views expressed herein are those of the author and are not necessarily intended to reflect those of
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