Apple Pay: An “On-Ramp” to Visa’s Network | Summary and Q&A

TL;DR

Apple Pay and Walmart's CurrentC are two different approaches to disrupting the payment space, with Apple Pay being an on-ramp to the existing infrastructure and CurrentC still in its early stages.

Key Insights

• 👾 Disrupting the payment space is challenging for small companies, but Apple and Walmart are emerging as potential disruptors.
• ❓ Apple Pay operates as an on-ramp to the existing payment infrastructure, while CurrentC's methodology is not discussed.
• 🔇 Visa, MasterCard, and American Express are supportive of Apple Pay as it increases payment volume on their networks.
• 🍉 The short-term benefits of Apple Pay for these payment networks may not guarantee long-term advantages.
• 💪 Widespread adoption of Apple Pay could potentially put Apple in a strong competitive position against traditional payment companies.
• 🥺 The success of Apple Pay might lead to increased charges for using their payment network.
• 😒 Walmart's CurrentC is in its beta phase, suggesting it is not yet fully ready for widespread use.

Transcript

Gaby Lapera: Like I said, it's very hard for small companies to break into this space, which is why, it's interesting that the people that you are seeing who might be disrupting the space are Apple and Walmart of all people. John Maxfield: Yeah. So, you have Apple Pay, which is a payment system that operates over the iPhone, then you have Walmart's... Read More

Questions & Answers

Q: How does Apple Pay work and is it disruptive?

Apple Pay functions as an on-ramp to the existing payment infrastructure, allowing users to use their iPhones for payments. While it may not be disruptive in the short term, if it gains widespread adoption, it could put Apple in a strong competitive position.

Q: Why are Visa, MasterCard, and AmEx supportive of Apple Pay?

These companies see Apple Pay as an opportunity to increase payment volume and make payments easier. They view it as a way to shift more payments away from cash and onto their networks.

Q: What is Walmart's CurrentC and how does it differ from Apple Pay?

CurrentC is Walmart's payment system still in its beta phase. The specifics of its operation are not mentioned in the content, but it is presented as a separate approach to disrupting the payment space.

Q: Could Apple start charging more for using Apple Pay in the long run?

If Apple Pay gains significant market share, it could potentially put Apple in a strong competitive position. In that case, Apple might consider charging more for using their payment network as a way to increase profitability.

Summary & Key Takeaways

• Apple Pay is an alternative payment system that uses near field communications to access the existing payment infrastructure.

• CurrentC, developed by Walmart, is also in its beta phase but operates differently from Apple Pay.

• Visa, MasterCard, and American Express see Apple Pay as a benefit and are on board with it.