Even though there are specific problems for Apple to face in improving Apple Pay adoption, Majors said bankers and merchants have failed to make it clear why customers should move to smart cards or mobile devices to make their payments.
While there are problems with Apple Pay, Phoenix calculated the user base of Apple Pay at 12 million individuals. Some industry officials believe that having the mobile payment capability on the Apple Watch will expand the popularity of Apple Pay significantly.
There is also some industry excitement around NFC and magnetic payments capability with the new Galaxy S6 and S6 Edge smartphones from Samsung. Many experts are also waiting to see what the impact will be from the coming CurrentC system from MCX retailers.
"I think smartwatches are going to help mobile payments grow, which will be especially true when the watch is eventually decoupled from the smartphone -- and that's inevitable," said Joe Dalton, chief products officer at SmartFocus. His company makes proximity marketing technology to help retailers find shoppers with smartwatches or smartphones near a brick-and-mortar store and then provide a special offer to entice them into the store.
"With Apple Watch, there will be the convenience of Apple Pay and the proximity function that goes with it," he said. "I'm bullish on what watches can do and believe it's the next evolution of the smartphone."
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