Question

1. Online Payment (Apple Pay / Venmo)

a) Define this digital marketing tactic today.

b) Share (what is) the innovation relating to this tactic.

c) How this could be used for marketing in the future?

Answer 1

Online payment (APPLE PAY)

Apple Pay is a online mobile payment service or digital wallet app from Apple that lets you easily pay online purchasing at retail location by using debit or credits cards which are secured in your iPhone. it use near field communication (NFC) for the secure payment transaction between Apple iOS devices (iPhone 6, iPhone 6 plus and Apple Watch) andcontactless payment terminals. it is first of new mobile payment which securly transmit the information of payment without transmitting information which is stored in older magnetic stripe credit or debit cards such as name, phone number or address of the card holder. this service is announced by Apple on september 12, 2014 along with iPhone 6 and Apple Watch but the service is available on October 20, 2014 for actual use by customer.

Apple Pay is currently available in China, France, Australia, Canada, Hong Kong, Italy, Japan, New Zealand, Russia, Ireland, Guernsey, Isle of Man, Singapore, UK, USA, Spain, Taiwan, San Marino, Switzerland, Vatican City, Jersey.

Innovation relating to Apple Pay

Apple Pay was available on October 20, 2014 with iOS 8.1 which changed the payments greatly. the innovation related to Apple Pay are

1. the first innovation is internal. Apple Pay is the patented structure of Secure Enclave processor which create impossibility for a thief to retrieve customer' token or encryption keys from the phone. thief can not get your personal information too.

2. it is very easy to use as customer can simply hold the iPhone next to the payment terminal after that touch the finger to TouchID sensor even this can be done in lock screen.

3. Apple Pay apperas as more fraud proof than plastic cards with bits of video tapes.

4. system which is used by Apple pay is not possible to replicated by any other company do to the patent.

5. its patented structure is built into hardware not just software.

according to a report Apple is on the top of the chart with its digital wallet and expecting double Apple Pay user base this year. Apple Pay hits 86 million users in 2017 globally up from 45 million in 2016.

Use of Apple Pay in the area of Marketing

Apple Pay transformed the payment mathod of the customers but it is also a wake up call for marketers. in Apple Pay marketing is done through Passbook. initially, the use of mobile wallet for marketing is unclear just paper coupens and offers but after sometime they realized the importance of this. passbook allows the marketers to gather data and run analytics to confirm the effectiveness of their mobile offering are in the hands of the consumer.

the another advantages for marketer is communication with customers. Apple Pay offered location aware notification to the consumer who preffered to save the passes in the passbook. whenever consumers are present nearby the destination then passbook reminds them about the running offers, loyality cards which are saved in their iPhone. passbook does hardwork on what consumers save in their phone. passbook reminds that information to the consumer at the right time at the right place.

with the help of passbook , companies can send the coupons to the consumer via text messages, e- mail or QR code on direct mail or on other places.all the methods use the link so that consumer can add these coupent to the passbook. coupons which are added on the passbook becomes location aware whenever consumers are present nearby the stores passbook reminds them about the coupons.

for example

Starbucks is taking advantages of Apple Pay marketing features for many years through Paasbook. the company lets consumer store their loyality cards on passbook and when consumers are nearby any starbucks' store then loyality card will be appear on the lock screen because passbook knows consumer' location.

Vibes which is providing automative service is also using this mobile wallet service to remind their consumers when is the time for oil change or some other sort of maintanence. notifications can be schduled by proximity. vibes focused on passbook feature of Apple Pay attracted almost 1000 people.

in this way Apple Pay will help marketers in future.