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Things you need to know about in-app payment with Apple Pay

Yoav Elgrichi, CEO, YuuPay Secure Pte Ltd | Feb. 24, 2015
Yoav Elgrichi of YuuPay talks about the ins and outs of Apple's new mobile payment and digital wallet service, Apple Pay.

This vendor-written piece has been edited by Executive Networks Media to eliminate product promotion, but readers should note it will likely favour the submitter's approach.

Apple was once associated with a fruit than with a phone and now with payments. Strange evolution for a name as it may seem, the announcement of Apple Pay did not surprise no one. This move by Apple came several years after major players such as Google have already launched mobile-payment related solutions. It was clear that Apple will enter the game, the only question was when and how.

While many can criticize Apple's closed-garden approach, no one can deny the fact that Apple is indeed a market shaper. There were music players and then came the revolutionary iPod, there were smart phones and then came iPhone. And the same will happen with Apple Pay, this solution is likely to set the tone for mobile payments.

Look, we can always argue if Apple products are the best or not. It does not even mean that Apple products possesses the widest adaption rate either. However, the name Apple and the products under its portfolio clearly shapes the nature of the market in the distinguished domains that they play in.

And such will be the role that soon Apple Pay will play -- a solution designed to allow iPhone users to make payments for goods and services with their iPhones, both in stores and within participating applications.

In this article we will focus only on the in-app payment, leaving the physical shops aside.

So let us start with the basics. Apple Pay gives customers an easy and secure way to pay for services and goods in iOS 8 applications by using payment and shipping information that are stored in the phone.

The phone is being used for two main activities:

  • Store your credit card details securely
  • Authenticate the identity of the card holder

1. New user experience

When shopping for goods and services within app, the common user experience comprise from several steps that are tedious and causes high percentage of dropping. Actually according to Baymard Institute, a web research company in the UK, 67.45% of online shopping are abandoned in the shopping cart and payment stage.

Apply Pay aims to improve the payment experience by utilizing data that the user already stored on the phone, such as credit cards details, address and shipping address.

The typical mobile payment flow is a multi-step process that involves:

Step 1) Adding an item to the cart

Step 2) Entering delivery info and shipping method

Step 3) Selecting payment method

Step 4) Entering payment info, including billing address

Step 5) Reviewing and tapping to complete the order.


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