Is Apple’s new Apple Pay scheme a lethal blow to Android phones and Windows Phone 9?

So Apple had their big reveal yesterday.

They basically introduced the world to their new phones (iPhone 6 and iPhone 6 Plus)and their new watches (Apple Watch).

The IPhone 6

Basically the phones look beautiful and are sure to be best sellers.

The iPhone 6 will be available in two different sizes, both bigger than Apple’s earlier iPhones.

The smaller of the two new iPhone 6 models has a 4.7-inch display, which is still notably bigger than 4-inch screen on the iPhone 5 and 5S that preceded it.

Apple says the new screen has Retina HD resolution, with 1334 x 750 pixels providing 326 pixels per inch for the iPhone 6 and full HD 1980×1024 pixels for the 6 plus.

The iPhone 6

The iPhone 6 measures 6.9mm thick, making it the thinnest device Apple has ever made. The power button has been moved to the side of the phone to make it easier to reach, even with the iPhone 6’s larger display.

Blah blah blah.. it’s a really good phone. Read the Verge’s Apple roundup for the details.

The iWatch/Apple Watch


The Apple Watch is a new digital watch from Apple.

The key innovation that Apple is touting is a breakthrough in input mechanics, using a Digital Crown on the Watch that can scroll, zoom, and navigate the user interface without obstructing the display.

Apple has designed six different straps and a special mechanism for swapping them around.

The Apple Watch will come in two sizes and three different finishes, and it will include inductive wireless charging.

The glass covering up the Watch is made of sapphire crystal, the hardy scratch-proof material that was speculated to be used in the new iPhone 6 models’ displays.

The Apple Watch has a built-in gyroscope, accelerometer, a heart rate sensor, and a Taptic Engine for input sensing.

The Apple Watch can recognize the difference between a tap and a press, offering another subtle way to make different inputs without needing additional input points or buttons.

There are a ton of features that Apple said their watch has and it will be available early next year.

Once again, blah blah blah…I have my own personal opinion that this watch is overhyped but that’s for another day.

I believe Microsoft’s main problem will be

Apple Pay


Apple Pay is Apple’s payment service that will allow both in-store and online mobile payment with a whole bunch of merchants.

Apple is implementing this via an embedded secure element. Credit card credentials can be obtained from existing iTunes accounts, or credit cards can be directly scanned via the iPhone’s camera.

Apple has partnered with Visa, MasterCard and American Express to make Apple Pay happen. Those three vendors cover 83% of all transactions in the United States.

Apple has also signed up an extensive range of merchants to accept Apple Pay including Bloomingdales, Macy’s, Subway, Walgreens, and Whole Foods among others.

Why Apple Pay is a problem for Windows Phone and Android

Everyone has known about NFC for a long time and other vendors have tried to put together a solution for mobile payments for years (including Microsoft).

Those went nowhere.

Now Apple seem to have waited for everyone to fail, learned from the mistakes, done the homework and seem poised to win big time.

See the video below.

The real question is, if Apple Pay is successful and becomes ubiquitous, where does this leave other phone vendors?

Will Apple create Apple Pay mobile clients for other phone vendors with NFC to license for a fee or will Apple simply make this exclusive to iPhones?

If Apple Pay becomes ubiquitous and Microsoft and Android can’t compete, what does this mean for those platforms? It becomes really difficult to market a phone that can’t buy coffee or books or food securely when Apple are rubbing that in your face every day.

If Apple is able to make this an iTunes moment and everyone else is caught flat footed, we may well remember this as the beginning of the end for real smartphone competition.

Yes there is Pandora and Soundcloud but iTunes was the defacto leader (some say still is) for YEARS.

This might be another moment in time.

What do you all think? Is ApplePay a threat to Windows Phone and Android?

Use the comments below…

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  • Steve M

    Apple Pay seems like the same hypey shit every NFC vendor talks about.

    We’ll see if they can pull it off.

  • Arnold

    Apple pay is actually good for Windows and Android. Let me know if your want me to elaborate.

    • I do.

      Please go ahead.

      • Arnold

        Give me a few, I am eating lunch, When I get back.

      • Arnold

        FYI, in your email you sent out, you have a typo and said Apple released their windows phone yesterday. Now that is huge news 🙂

        • I guess I am in good company with the typos. Yeah I noticed.

      • Arnold

        The reason NFC payments have not taken off, yes is because iphone was not on board, no NFC available unless with a special case. Most businesses and companies would not implement NFC readers because they perceived this as not a “happening” thing, or had no knowledge of it existing at all, For those folks this was just invented by apple yesterday. There is a perception especially here in the states, that nothing matters if it is not an Iphone. That is unfortunate but it is true.

        The good news is that now more merchants will hop on board with this and there will be more acceptance. I have to agree Apple Pay the implementation and the ease of it looks way better than Google and Microsoft Mobile wallet systems. Butt…. by now you should be aware and have noticed that Windows Phone is not going anywhere and is turning into a great platform.This will only wake up Google and Microsoft to implement better and fortunately because of apple the infrastructure will now be more ever in place for everyone to flourish.

        • Great points.

          The question really is all about how this is implemented. For instance, what kind of “exclusivity” will Apple have worked out with Amex, Visa and Mastercard?

          That will be the key to seeing if other competitors can build their own NFC powered payment solutions fast enough.

          Remember Itunes? People blinked and Apple locked up all the music studios.

          • Arnold

            Honestly, I have no clue what you are talking about with iTunes. Itunes was a way to transfer your songs to your ipod, nothing more, nothing less. Few people still even install it i would wager. And sign up for music service?? Pffffff please.

            As far as exclusivity that would be bad, but I doubt it. They didn’t mention anything of exclusivity yesterday and Google and Microsoft are juggernauts, I doubt they would allow Apple to Bully them on this.

          • Apple revolutionized music downloading with Itunes. Before that happened, they signed deals with all of the major record companies and basically launched as a monopoly.

            My concern is what type of deals have Apple signed with Visa, Amex and Mastercard? Will the deals be so one sided that Apple’s solution seems like the best way to go?

          • jasnils

            Well, iTunes may have changed the way we purchase music, but after Spotify I don’t purchase music anymore. I still listen to it and I do pay, but iTunes or apple are not part of it. I even listen much more than before.

            With apple pay the unbanked are not banked and can still not pay or transfer money easily online. Think consumer driven economies and realize apple will never be the solution.

          • Superade

            I can’t imagine any business solely interested in making money, such as aforementioned credit card companies, would keep any kind of exclusivity.

  • Frank W Marrazzo

    Seeing this is all old . Android did this years ago. And as far as I am concerned I would not trust apple with my bank info.

  • deadendbill

    Apple pay is just another hyped up NFC system in my opinion. I can swype my card faster than the delay.

  • penultimateName

    I read that Visa can offer the pay system to others. Obviously would not use Apple Pay infrastructure if true. It is also supposedly a defensive play against Alibaba and the reason they are playing in the same sandbox with the credit card companies. Rather than create a PayPal like setup. Alibaba wants to control payments with their system.

  • OnTheWrite

    I will be very surprised if Apple gains any new market share from the iPhone Sixes, there is little to pull Android, Windows and other brand users from their current phones to Apple. I think the new sizes, especially the 4.7inch model will be appealing to consumers owning iPhone 4, 4s and 5, unless the price is too steep. Apples existing customer base and iPad Mini owners will the buyers.

    I have an iPhone 4s which is an excellent phone, but I also own a couple of Windows phones as well. With the new Cyan update and Windows 8.1, you don’t suffer any functionality loss by choosing one OS over the other. I prefer “live tiles” and Window’s new notification center to the iPhone 7.x OS.

    Regarding Apple Pay as a lethal blow to Microsoft, no I don’t think so. We are losing control of our personal data as it is, Apple Pay just adds another vulnerability. I’ve had a SpeedPass on my keychain for years and I’ve always worried about it.

    What really annoys me is that neither PayPal or Square has made a Windows Phone App — yet. I still have to have an iPhone or Android to conduct my business. Microsoft needs to step up to the plate.

    • Arnold

      Paypal does indeed have a native windows phone app.

      • OnTheWrite

        Arnold, you are correct, PayPal does offer a native PayPal app for Windows Phone.
        What I intended to say, but omitted the term, was the PayPal Here and Square Register Apps that allow taking of credit-card payments on Apple and Android phones.

  • David Farris

    Why are you asking the wrong question? The question that you SHOULD be asking is will brick and mortars with their antiquated POS start supporting pay by NFC? I know it is fun to stir the crap pot, but really, anyone can do NFC payments now IF the POS store fronts start making changes.

    • Yeah but will the software client be generic or belong to Apple? That becomes the issue.

  • Ted Smith

    Apple Pay could be great, but there’s a long time before it’s a real threat to Microsoft. I think the celebrity nude leaks from iCloud are going to make people little skeptical of Apple Pay. At least at first.

  • Huw Clarke

    I can’t see Apple Pay being much of a threat to Android or Microsoft. Each time Apple release a phone they try to incorporate a new technology or gimmick on which to market the phone. Remember the fingerprint scanner last time round?? NFC payments have been around for a long time and the fact they haven’t really caught on that much won’t be changed by the fact you can now do it with an iPhone. I think Apple are still just playing catch up with other mobile phone manufacturers (bigger screen models have been out with Android and MS for a while) and I think people are realising you can get a lot more for your money these days by buying Android or Microsoft. Yes the iPhone looks pretty, but then so have all of the iPhones, but the design of them hasn’t changed that much over the years. IOS used to be the best OS for mobiles but you see Apple now copying ides from Android and MS which have evolved to become better than IOS in my opinion.

    • Arnold

      I think you are wrong NFC payments will start to become popular because of the new Iphone. But as I stated in my replies yesterday, That will not make it a threat to Windows or Android on the contrary it should only help UNLESS Onuora is correct on the exclusivity, if a lot of merchants decide to make somehow an Apple only accepted payment thing, then things get ugly.

      One thing that Apple also got right but I know MS will do better probably sooner than you think is the implementation of ApplePay, the way it works with that Touch ID and how quick it looks like it works ( I say looks like because all we seen is their promotional videos, got to see real life first before we truly know) the way they implemented it is Nice and easy for anyone to understand and use. That is a good thing, can’t front on them there. I just know it will be surpassed by both MS and Google.

      Competition is a good thing for innovation at the end of the day.

  • Little John

    I would have major problem using mobil phone with my banking information; the phone gets stolen. Can the thief use the phone to purchase goods? Are safely issues for me or do I need a pin number to make the card work?

    • KickSpork

      Your finger print is needed for each transaction.

  • Damian Vansen

    Apple waits to learn from everyone else’s mistakes before entering a new venture? Its official, Apple is now Microsoft.

  • Rumin8

    Right now most of us have a wallet and a phone. If one gets pick-pocketed, we might still have the other. Now think ahead, to having everything in one unit. How safe will you feel? Has your wallet battery ever run down? Has your wallet ever suffered from malware? If your wallet gets stolen, you make a phone call. If your phone gets taken, you need your wallet to pay for a phone call or transport. If they are together in one unit? Of course you might be unlucky. They could both be stolen. Or you could be hit by a truck while distracted answering your phone. Just a thought.

  • jasnils

    I’d rather see NFC less secure payments like the one offered by mCash (
    I think a system where you can be the customer, the merchant and the
    bank depending on the circumstances would be a superior system. No
    expensive tech investment.

    If you have cash (no bank account),
    then you pay a mCash bankier (anyone with mCash credits) who credits
    your mCash account with the equivalent currency to your cash. Then lets
    say you buy two sodas with some of your credits. This time your credits
    are instantly sent to a merchant. If one of the sodas was for a friend,
    he can again instantly credit your account. The system supports friend
    to friend payments, QR price tags, bar codes, online- and offline
    purchases in addition to the above.

    Apple is not going to make Android and WP8.x obsolete!