Speak with Fortune Executive editor Adam Lashinsky at the Brainstorm Reinvent conference in Chicago on Tuesday, Bailey said that Apple did not want to disrupt the payments industry with Apple Pay. On the contrary, when the company launched the product four years ago, it wanted to introduce an attractive consumer solution that worked with established payment methods.
"When we thought of Apple Pay, we thought, there are many payments that our customers love to do and trust," Bailey said. "We do not think about what kind of industry we should disrupt?" – we think about which great customer experiences we can develop? & # 39; "
Apple generally finds huge success in the role of disruptor – see iPhone, Mac and iTunes – but the typical approach of the company did not fit well when it came to the deep-rooted payment market. Particularly worrying was government supervision, according to Bailey.
Credit card replacement becomes Apple one de facto financial institution, which requires a bank charter and strict regulations. Bailey was adamant that Apple does not want to be regulated.
Indeed, Apple wants to go beyond payments and in what Bailey refers to access. The company rolls out student cards for Duke University, the University of Oklahoma and the University of Alabama next week in a solution that combines payments with NFC-based access to buildings. Students with compatible iPhone and Apple devices can store their ID cards in Wallet to enter dorms, pay for and perform other cus functions.
Apple seems to push the access angle as an important feature of Wallet and supporting NFC-compatible devices. Bailey called Apple's work to facilitate adoption in business environments, but also by hotels. Apple uses log-in data on the device to block access to its Apple Park Cus – a technology that was shown at the WWDC this year.
"It's a huge new area where we can concentrate, which is really access," Bailey said.
Both Starwood Hotels and Hilton Worldwide rolled out iPhone and Apple-compatible hotel key cards in 2014, although the implementations were based on the Bluetooth Low Energy protocol, not on NFC.
Bailey took today's interview as an opportunity to collect recent Apple Pay statistics, saying the payment system should support 60 percent of US retail locations by the end of the year. Furthermore, Apple Wallet is live in 24 countries, so it is not surprising that there is faster growth outside the domestic market of Apple. This last measurement value is probably attributed to the familiarity of the consumer with already existing non-contact technologies, especially in Asia.
In terms of transit, another important Wallet feature, iPhone and Apple owners can use their devices to drive public transportation in 12 cities around the world. Tokyo, Beijing and Shanghai integrate closed loop technology, while London and Moscow rely on open-loop technology, according to the report. Bailey said the product sees a rapid high penetration in Tokyo, where Apple Pay was launched in 2016 with support for JR East's Suica mobile transit card system.
Finally, Bailey said that even though Apple earns money with Apple Pay transactions, the new features that come to Wallet are designed to keep users loyal to Apple platforms.