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A report from WWDC15: Why In-app Apple Payment will be the future of payment

We sent our UK Tech Lead Oliver Wang to an Apple Pay lecture during the WWDC15. This is his report.

We just went to the lecture on the new upcoming Apple Pay at the WWDC15 in San Francisco. From July 2015 you will be able to make payments with Apple’s year old technology in the UK and hopefully within a not too far future more countries as well.

The technology has been rolled out in the States for a year now and has had a great success, with $2 out of every $3 on purchases using contactless payments across the 3 major US card networks being made on Apple pay, after the first 3 months of launch.

Wallet will replace Passbook
Apple Pay will be integrated with the new iOS9 Wallet application. This will totally replace the good old trustworthy Passbook. All your boarding cards, cinema tickets and the like will be integrated in the same place as your credit and debit cards.

With Apple Pay you will be able to buy physical products like a webshop directly within the app. While you have been able to do this before, it will never have felt so native, or secure.

Apple Pay leads to higher conversion
At the talk the engineers told us that they have seen conversion rates of up to 109% more in-app sales.

The main reason for this is that the user no longer has to create an account for each app they want to buy something from. This cuts down on the user flows, ensures minimal gating, and means a customer does not now need to enter credit card numbers, shipping addresses, etc, for every purchase. While we we would still recommend you implement this, so you can remain the owner of this important personal data (such as email account, password etc.), the benefit is clear.

Another reason why the conversion rate is so high is that it’s trustworthy. Apple provides some fixed buttons straight out of their PK framework (PassKit). They make it absolutely clear what the user is getting into when pressing that button and before they proceed. The only thing the user needs to then do is to pick the correct card and address that they already have stored in the native Wallet app. The user will in the ideal position to be able to buy a product from your shop within 3 clicks. Now that’s a payment system for the future.

Implementing Apple Pay is dead simple
Implementation-wise it’s very straightforward. As mentioned, Apple provides the PK framework, meaning it can be implemented with no more than a dozen lines of code. You will of course still need to implement additional code around it.

When implementing Apple Pay in your app you will still also need to pick a 3rd party payment provider such as BrainTree or Stripe. We were told by one of the engineers that both BrainTree and Stripe have some native iOS code that should ensure that Apple Pay implementation is extremely simple.

So, to sum up, if you’ll need to take a payment at some time in the future of your app then get Apple Pay implemented now, as part of your app development. It’s easy to implement and super trustworthy which is great for both the user and for your conversion rate. Everyone’s a winner.

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