Apple Pay: Catch 22

Nathaniel Popper, The New York Times:

For the banks and credit card networks, Apple Pay could threaten some revenue streams, as the technology giant looks to assume a more central role in the financial universe. But the eager participation of banks and card companies suggests both Apple’s clout, and the recognition among financial institutions that they face broader challenges from upstart technology ventures, many of which are not as eager or willing as Apple to work with the incumbent financial industry.

The U.S. is probably one of the few advanced nations that continue to use credit and debit cards with magnetic strips instead of smart cards with security chips.

I expect the financial industry will be transformed, just like the music industry has been. Apple is injecting a good dose of easy to use (your iPhone 6 and/or Apple Watch to pay for things) and simple enough to understand the benefits (more secure) into an industry that is stuck in the 20th century.