Banks Hungry to Cash in on “Apple Pay” Mobile Commerce

U.S. banking giants are in a race to entice Apple Pay subscribers to select their branded cards when they set up their payment options. Various media outlets have reported that while every major bank in the country has set aside a sizeable “war chest,” Apple is imposing strict guidelines on how financial institutions may and may not market Apple Pay services to bank customers.

As many industry onlookers expected, Apple announced on September 9 that its upcoming iPhone 6 line would support mobile payments through near-field communications (NFC) technologies. This feature will enable users to make fast, easy payments at points of sale by tapping their phones against a terminal, and complete online purchases through mobile apps. The payment app stores the user’s information, including addresses, bank account details and credit card numbers, freeing consumers from having to enter this information to complete a payment.

While the breakthrough is being hailed as a revolutionary step forward for mobile commerce, some smaller banks are crying foul that they have effectively been boxed out of the bidding by larger, deeper-pocketed competitors. Banks are also bidding without knowing all the details of the Apple Pay system, which most industry onlookers believe will be built around customers choosing a single default card, through which all their transactions will be processed.

If you work for a financial app development company, you’ll want to pay careful attention to the Apple Pay system as it’s rolled out. Mobile commerce is set to explode, yet there will still be plenty of room to improve the customer’s overall experience, especially in the infancy of the technology.

For a mobile app developer in Chicago or any other major U.S. city, remember that Apple Pay is only the beginning. As mobile payment technologies continue to expand and develop, and as its user base continues to grow, new platforms and new opportunities will emerge. Now is the time to look ahead to the kind of software that will improve security and convenience for consumers.