BLOG: Apple Pay Part 2: Why should Apple Pay be on your bank’s To Do List?
Note: Read my post on “What the heck is Apple Pay anyway?” for background.
At a recent conference, I asked a group of really smart bank marketers which of their banks had Apple Pay on their list of To Do’s, and only 2 of about 30 said yes. That’s only 7% of community banks taking some action on Apple Pay. So what’s the big deal? Why should it be on your bank’s To Do List?
Here is why. (Note: If I was still in my role as head of eServices at a $900 million bank, I would definitely have it on my list.)
While you can have multiple debit and credit cards set up in your Passbook (Apple Wallet), only one gets to be the default card, which means only one wins.
Your primary debit or credit card will be the one you use 90% of the time. Sure you’ll have others you can switch to, but would you really go through that hassle? You’re using Apple Pay to pay and get on your way. Switching back and forth with various cards is not.
Since financial institutions are all vying for interchange revenue, it will be a race to see who claims that primary card position. Smart banks want to get there first by educating their customers on the process (in the simplest of terms) and having them load your bank debit or credit card as their primary in Apple Pay.
There is a long waiting list for financial institutions to have their cards approved for Apple Pay. If your bank is not queued up yet, then you should talk to your bank leadership soon, as in very soon.
Now while you might not be 100% sold on Apple Pay as the way of the future, that’s okay. Neither am I. We all have fears over security of information. A recent comment from a close friend expressed concern—“as if losing my phone is not stressful enough, now my payment information will also be on it and I’ll be stranded with no way to pay.” Combine this with the critical component retailers will play in Apple Pay’s success makes a strong argument that its future is still to be determined.
But with the power of Apple, their brilliant marketing, their huge fan following and the incredible amount of money they can invest in ensuring Apple Pay is adopted, well let’s just say, I personally wouldn’t risk not being at the table.
Want more practical information on Apple Pay?
In case you missed it, you can listen here to the recording of our Webinar session: What the heck is Apple Pay anyway and Why Should Banks care?