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May 5, 2015
mm Written by:
Ralf Ohlhausen
Business Development Director
Paying really can be this sexy

Let’s not beat about the bush here. For customers, making a payment transaction is about as exciting as watching paint dry. But the Apple Watch proves that even a payment transaction can be sexy. It’s true, we can’t be sure that smartwatches will catch on in the long-term, but initial figures show that the Apple Watch has got off to a good start. In the USA alone around a million customers ordered an Apple Watch the first weekend they went on sale (1).

Paying with the watch

One of the main functions of the watch is the built-in payment option with Apple Pay. iPhone 6 and 6 Plus have this facility as well, but with the Apple Watch you can keep everything tucked away at the checkout. Everything stays in your pocket: cash, credit card, mobile phone; the only thing you use is the watch on your wrist. That really is the only thing you need, because the iPhone is only required for set-up; payment is made with the watch itself. And it’s so simple that you won’t believe your eyes.

Payment in two seconds

If Apple Pay is accepted, all you have to do is hold the watch near the terminal and then press twice on the button on the side of the watch. If you have multiple credit cards stored, you just need to swipe quickly through your cards to change the payment method.

Easy to set up

Setting up payment with the Apple Watch is easy. Users create a PIN code for the watch, which they have to enter every time they put the watch on their wrist. This prevents a stolen card from being fraudulently used to make purchases. To pay with the Apple Watch, a one-off registration of the credit card using the Apple Watch app is required. To do this you will need at least a fifth-generation iPhone. If a credit card is added, this is verified by the issuing bank. If everything is OK with the card, an encrypted ID number is stored on the Apple Watch.

The next big thing in payment

Paying with the Apple Watch could become a big thing. No complicated set-up is needed and it is secure. What’s more, the payment transaction is really fast and hands-free: no messing around with a smartphone, no rummaging for cash or credit cards. What’s to stop it? Not everyone wears a watch costing at least 400 euros on their wrist and not everyone wants an iPhone either. Apple Pay has also not even begun to take off in Germany and as ever the biggest hurdle is acceptance. But if anyone can turn the market on its head, then Apple can. All the conditions are just right for the Apple Watch.

First Apple Watch Data: One Just Isn’t Enough

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Tags:
alternative payment methods | Payment Industry | trends