8 Wallets Changed by Apple Pay's Debut

Published October 31, 2014 11:10 AM

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Updated October 20, 2016 10:15 AM

1 Min Read

Apple Inc.'s iPhone 6 is displayed at the company's Omotesando store in Tokyo, Japan, on Friday, Sept. 19, 2014. Apple stores attracted long lines of shoppers for the debut of the latest iPhones, indicating robust pent-up demand for bigger-screen smartphones. Photographer: Tomohiro Ohsumi/Bloomberg

Tomohiro Ohsumi/Bloomberg

Apple Pay is still new to the scene, but it's already forced a number of other online and mobile wallets to change course. Some are rethinking their technology, while others are trying to find the best way to build on the buzz Apple created. (Image: Bloomberg News)

The CurrentC application (app) is demonstrated on an Apple Inc. iPhone 5s for this arranged photograph in Washington, D.C., U.S., on Thursday, Oct. 30, 2014. CurrentC, the retailer-backed mobile-payment system touted as an alternative to Apple Inc.'s platform, was hacked during a test of the technology, resulting in some e-mail addresses being stolen. Photographer: Andrew Harrer/Bloomberg

Andrew Harrer/Bloomberg

Merchant Customer Exchange's CurrentC

The launch of Apple Pay is testing the loyalties of the Merchant Customer Exchange's constituents. Some sided with MCX by shutting off Apple Pay, a move that is forced MCX to be more outspoken about its contractual terms. MCX may also begin supporting NFC, the same contactless payment technology Apple Pay uses. (Image: Bloomberg News)

The Google Inc. Mobile Wallet card for cardless payment sits on display at the Mobile World Congress in Barcelona, Spain, on Wednesday, Feb. 29, 2012. The Mobile World Congress, operated by the GSMA, expects 60,000 visitors and 1400 companies to attend the four-day technology industry event which runs Feb. 27 through March 1. Photographer: Chris Ratcliffe/Bloomberg

Chris Ratcliffe/Bloomberg

Google Wallet

The MCX merchants that shut off Apple Pay took Google Wallet, Softcard and even contactless plastic cards offline with it. But Google is slowly adapting, and issued an update to Google Wallet that adds alerts and other features to keep its users engaged. (Image: Bloomberg News)

MasterPass

MasterCard sees Apple Pay as a launching point for tokenization, a security method that protects account data by substituting a limited-use token when making payments. Now that the technology is part of Apple Pay, MasterCard plans to adapt it for its own MasterPass digital wallet.

Softcard mobile payments expand to McDonald's in U.S. (PRNewsFoto/Softcard)

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Softcard

At the merchants that still support multiple NFC wallets, Softcard is getting a boost from Apple Pay's debut. For example, the training that McDonald's put in place to encourage Apple Pay use at the drive thru also benefits Softcard the telcos' mobile wallet is even explicitly promoted in McDonald's marketing. Softcard also plans to work with the iPhone 6's built-in NFC chip.

The Alibaba Group Holding Ltd. Alipay.com Co. website, displayed on a Samsung Electronics Co. tablet, is seen in an arranged photograph in Hong Kong, China, on Friday, Oct. 11, 2013. Alibaba, Chinas largest e-commerce company, will go public in 2014 after talks with Hong Kongs exchange on a proposed corporate governance structure fell apart, said people with knowledge of the matter. Photographer: Brent Lewin/Bloomberg

Brent Lewin/Bloomberg

Alipay

It's not clear what kind of "marriage" Alibaba founder Jack Ma has in mind for his company's Alipay affiliate and Apple Pay. But one possible partnership could see Alipay become a funding mechanism within Apple Pay, giving the Chinese company a strong foundation in the U.S. (Image: Bloomberg News)

LevelUp

SCVNGR's LevelUp was fast to get on board with Apple Pay, despite offering a competing wallet. The company already uses Apple's iBeacon technology, and plans to integrate directly into Apple's Passbook, making the LevelUp wallet a payment option alongside bank-issued payment cards.

Signage for Ebay Inc.'s PayPal unit is seen outside the company's offices in Dubin, Ireland, on Thursday, Feb. 9, 2012. Ireland will give a tax break to ''key'' overseas workers who are assigned to work in the country, Finance Minister Michael Noonan said in an e-mailed statement. Photograph: Aidan Crawley/Bloomberg

Aidan Crawley/Bloomberg

PayPal

PayPal, which competes directly with Apple Pay, has long avoided using NFC for contactless payments. But PayPal has already said it will start supporting NFC if Apple Pay creates enough consumer interest. (Image: Bloomberg News)

A BBVA logo sits on display outside a Banco Bilbao Vizcaya Argentaria SA bank branch in Madrid, Spain, on Tuesday, July 22, 2014. BBVA, Spain's second-biggest bank, agreed to purchase state-run Catalunya Banc SA for 1.19 billion euros ($1.6 billion) as the government lined up buyers for nationalized lenders. Photographer: Angel Navarrete/Bloomberg

Angel Navarrete/Bloomberg

BBVA and other banks

Apple Pay forces banks to develop their own mobile wallets, according to BBVA's Jon Groch. BBVA plans to port its Android card app to iOS to entice consumers to pick its card to pay. "If we didn't have this mobile wallet customers wouldn't even know what wallet they're using when they use Apple Pay," he said. (Image: Bloomberg News)