facets of apple pay: apple watch - insights & thoughts

Insights & Thoughts

Facets of Apple Pay: Apple Watch

November 24, 2015 – Dr. Thomas Fromherz

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Intro

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Intro

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New Family of Devices

Netcetera | 5Source: PayWear / wear2pay.com

Payment Devices

Netcetera | 6Source: PayWear / wear2pay.com

Payment Devices

Netcetera | 7* Source: iSkin

Embodied Devices & Payment

Netcetera | 8Source: bbc.com / cbsnews.com

Embodied Payment

Netcetera | 9Source: The Sidney Morning Herald

Embodied Payment

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Update on Apple Pay

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Adoption

Total: 14%

Gen X (33-46Y): 48%

Millennials (18-32Y): ~rest

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Adoption

~50% of Apple Pay users

ready to leave wallet at home

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Adoption

~50% of Apple Pay users

would be ready to leave wallet at home

if there were enough NFC terminals

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Friction

Not enough acceptance points

Not recognizing contactless terminals

Not understanding features

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Friction

2 out of 3 had problems with Apple Pay

Terminal took too long

Cashier unfamiliar with Apple Pay

Transaction posted incorrectly

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Fraud

Provisioning fraud

Education by schemes & measures by banks

dramatic decrease

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International Expansion

Internationally, barrier is fee structure

Netcetera | 18http://www.slideshare.net (Stichworte: Apple Pay, Fromherz)

Apple Pay on Apple Watch

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Registration of Card for Apple Pay

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Add card separately for Apple Watch

Process through “Watch” app

Registration now 2-step process

Registration

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Tightened identification step

Call center not enough

Needs one-time code

Registration (cont.)

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Registration (cont.)

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Registration (cont.)

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DAN different on Apple Watch and

iPhone

Registration (cont.)

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Payment with Apple Watch

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Video shows transaction at

Migros and KKiosk

Payment with Apple Watch (cont.)

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Video shows transaction at

Migros and KKiosk

Payment with Apple Watch (cont.)

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Double-tap lower button on watch

cards appear

Payment with Apple Watch (cont.)

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No Touch ID: no need, pin on watch

iPhone presence not required

Receipt shows DAN, not PAN

Watch app doesn’t show transactions

Payment with Apple Watch (cont.)

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Final Thoughts

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Terminals

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Self-Scanning Terminals

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Terminals

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thomas.fromherz@netcetera.com

+41 44 297 58 18

Dr. Thomas Fromherz – Head of Payment & Card Services

Contact

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