Even though many people see Apple Pay as a direct competitor to Bitcoin and blockchain technology, the reality could turn out to be quite different in the not-so-distant future. Obtaining partnerships with banks and other financial institutions has been a challenge for the technology giant, and alternative payment technologies could be a powerful ally. Apple Pay combined with blockchain technology, or even Bitcoin payments, is not an unlikely scenario.
The Apple Pay Struggle Is Real
Despite being around for over a full year now, Apple Pay still hasn’t made a meaningful impact on the lives of everyday consumers and shoppers. In fact, the number of users has been dwindling ever since the service launched, and it remains to be seen how and when that situation will change.
But at the same time, Apple Pay is leading the charge to bring alternative forms of payment to consumers and retailers around the world in a convenient manner. The only downside to this approach is having to rely on bank partnerships, and getting payment terminals upgraded all over the world.
Needless to say, neither of those downsides are being resolved anytime soon. Upgrading payment terminals is up to individual retailers, as it means an additional fee for them. Banks, on the other hand, are never keen on new partnerships, not even if that partner is a tech giant such as Apple itself.
Alternative payment options and technologies are of great interest to Apple and their mobile solution. Reducing fees for retailers would be a major step in the right direction to push Apple Pay adoption to new heights. At the same time, a way to bypass the bank partnership part would solve the biggest problem right away.
Bitcoin And Blockchain Technology To The Rescue?
Luckily, such a solution already exists, in the form of blockchain technology. The currency sitting on top of that technology is known as Bitcoin, which removes high transaction fees, and clears transfers of value within seconds anywhere in the world. In a way, this solution would bring alternative options to consumers, other than credit cards.
Embracing blockchain technology would give Apple multiple advantages that extend well beyond just payment processing itself. In fact, the technology giant could issue their own token on the blockchain to offer discounts, rebates, and pass on the savings directly to customers.
Regardless of how one wants to look at it, the credit card was never designed to be used on such a large scale for payments. Fraud and chargebacks are more rule than exception these days, which is hurting both retailers and consumers. Bitcoin and the blockchain solve all of these issues, but market penetration is key. Apple Pay could be a valuable ally in the long run.
Source: Huffington Post