Apple Pay was launched on 20 October 2014 and was initially available at 220 000 retail locations in the USA. It is poised to take up a dominant position against competing mobile payments platforms, including initiatives by communications service providers (CSPs). Apple Pay’s architecture completely bypasses operators’ ability to control payment details, and challenges their capacity to meaningfully insert themselves in the mobile payments value chain.

This Viewpoint:

• identifies the key factors that have enabled Apple to position Apple Pay for success against competing mobile payments platforms
• explores the increasingly competitive mobile payments space, and the challenges it presents for CSPs
• provides details of Apple’s strategy with Apple Pay, and how it fits with the rest of Apple’s device ecosystem
• summarises Apple Pay’s architecture, and the way that it provides Apple with a competitive advantage
• provides recommendations for CSPs.

Company coverage

The following companies are mentioned in this report.