Apple Pay - Digital Payments Without the Flood of Personal Information
In October, 2014 Apple released
via an update to its mobile operating system. iOS Version 8.1 received an update that allowed iPhone users to make secure digital payments for goods and services at supporting retailers. We finally see Near Field Communication (NFC) being used for its intended purpose and Apple (as expected) is launching exclusively to the iPhone 6 family and soon to the Apple Watch
During the CMS Insider segment on CMS-Connected
in February, Scott and Butch took a moment to discuss Apple Pay and it’s unique offering to the digital commerce space.
Eluding to conversations held with fellow DCG analyst Tim Walters, Scott reveals a cautionary tone related to Big Data’s greed and seemingly naive view of privacy and security of the collected data. We can point to many very high profile security breaches throughout the last 12 months.
What sets Apple Pay apart is that neither the banks nor the retailers are soaking up any data from the transaction.
"The significance of this is recalling when someone like Target is hacked and 40 million credit card numbers gushed from its servers. With Apple Pay the customer is protected from this type of breach." -Scott
Quite rightfully, as ‘smart data’ is dawning and companies are desperate for customer journey and engagement data, some companies are annoyed at not having this information to build into their remarketing infrastructure.
Personalized, Relevant Experience or Information Security
Many companies have pushed back at this notion of refusing to provide the customer data, however only time will tell what the balance between security and personalized experience is and how this will affect Apple Pay’s policy.
“We gain convenience with the amount of personal information that we give up about ourselves. This idea that I can have a tailored, relevant experience online is something that I get only because I’m willing to give up data and information about myself” - Scott
In the end the consumers will drive the successful model, but what will that be. On the one hand we can have extremely personalized and relevant shopping experiences when we provide our customer journey data to the retailer. Take Amazon for example; an incredibly personalized and relevant experience. They remember what you looked at, provide directly relevant suggestions, they know everything about you and the consumer is okay with that.
“In this case we actually have a greater convenience in the use of Apple Pay, but I’m not giving up any data whatsoever” - Scott
I Like my Personalized Content, How is this New Model More Convenient?
Up until now, there was no choice, we just carried on allowing companies to capture our data because it was the thing to do. We didn't’t realize we were doing it and for the most part had no idea of the risk. The Target debacle recharged this privacy conversation with the general public. We may start to see people move away simply out of fear and that there is now a fully fledged option.
On the content management side of things we have seen a wholesale move by some of the CMS giants like Sitecore, Adobe, Acquia who have completely retooled their core product to be able to deliver a completely personalized experience. This experience however relies on the willingness of the consumer to consent to their data being mined.
Butch offers his personal prediction on the Apple Pay topic:
“I’m going to steal your thunder for a moment and make a prediction how this will go. Pretty soon we’re going to see Apple release an update that will allow the consumer to decide whether or not to share their data with the vendor.” – Butch
So will this happen? Will Apple cave to the desires of consumers expecting that personalized experience. Will the subsequent data reveal a significant drop in sales, leads, returns and completed transactions from all Apple Pay customers?
Watch the segment again and let us know!