It’s been well known that Apple has been working on some sort of mobile payment system for some time.
Many believed this was the reason the company decided to ban all cryptocurrency wallet apps without warning this February, a ban which was lifted in June.
Yesterday, Apple finally unveiled their plan: Apple Pay.
Apple CEO Tim Cook made a presentation in which he outlined his company’s desire to update what he called “the fairly antiquated process” of payments by means of credit or debit cards.
Apple Pay will be integrated into all iPhone 6 devices. The way it works, from a user interface perspective, is similar to the way debit cards with “tap” capabilities work. Users add their credit and debit cards to their phone, choose which one to use, and tap it on the merchant’s special Apple Pay reader.
What Does This Mean For Bitcoin?
Apple’s decision to get involved in the payment processing industry will certainly have repercussions for Bitcoin.
Even more so based on the fact that they’ve created a mobile payment option.
The true repercussions have yet to be seen. But one of the major differences between Apple Pay and Bitcoin is that Apple Pay is designed to update the current system rather than reinvent it.
While Apple claims to focus on “security and privacy”, Apple Pay is only as secure as the banks through which it works. And while Apple itself may not collect any data on your purchases, your bank still does.
Of course, banks are not immune to security leaks. Neither are Bitcoin exchanges, as Mt. Gox proved, but those who take the proper precautions with their own Bitcoin wallets will find a safe, secure environment in which to hold their coins.
One advantage Apple Pay has over Bitcoin, though, is merchant adoption. They’ve already announced a large number of early adopters, including McDonalds, Subway, Disney, Walgreens, Macy’s, Sephora, and many others. Apple Pay will also be featured in Apple’s retail stores.
Meanwhile, Bitcoin merchant adoption lags behind. While big names like Overstock, Dell computers, Expedia, and most recently PayPal have helped improve Bitcoin’s public presence, it still has a long way to go.
What Is Apple Pay? And What Does It Mean For Bitcoin?
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