Apple Pay Turns 10: Looking Ahead, Your Wallet Will Be Your Universal Key

Apple Pay Turns 10: Looking Ahead, Your Wallet Will Be Your Universal KeyOn the tenth anniversary of Apple Pay's launch, Jennifer Bailey, Apple's vice president of Apple Pay and Apple Wallet, revealed new details about the future of contactless payments and digital keys on iPhones. Apple launched its mobile payment service, Apple Pay, on October 20, 2014, with the aim of allowing users to pay without physical cards

Apple Pay Turns 10: Looking Ahead, Your Wallet Will Be Your Universal Key

On the tenth anniversary of Apple Pay's launch, Jennifer Bailey, Apple's vice president of Apple Pay and Apple Wallet, revealed new details about the future of contactless payments and digital keys on iPhones.

Apple launched its mobile payment service, Apple Pay, on October 20, 2014, with the aim of allowing users to pay without physical cards. However, the service didn't initially gain wide market adoption. Bailey explained in an interview with ThePointsGuy that Apple had to educate consumers and work with merchants to convince them to use the service.

"We put a lot of effort into building a great user experience," Bailey said. Since its initial launch, Apple Pay's merchant acceptance has increased from 3% to "over 90%." Today, Apple Wallet can be used not only for various types of shopping but also to store virtual car keys, hotel room keys, and digital driver's licenses in some states.

Apple is developing new use cases for its wallet app. Bailey believes that car rentals are a possible area where Apple Wallet can play a role. She mentioned, "Imagine in the future, a rental car company will issue you a digital key that unlocks and powers the car." Some hotels already support digital keys through the Apple Wallet app, and over 30 car manufacturers, including BMW, Hyundai, and Kia, support Apple CarKey. This makes using Apple CarKey for future vehicle rentals a reasonable possibility.

Apple also plans to expand support for digital IDs and driver's licenses in the Apple Wallet app. Currently, only seven US states support digital IDs in Apple Wallet: Arizona, California, Colorado, Georgia, Hawaii, Maryland, and Ohio. Bailey said Apple is "working with many other states." She explained that the expansion of digital IDs in Apple Wallet will take some time. States need to understand the company's approach to privacy and security, just as payment processors and consumers took time to finally accept Apple Pay.

When asked about Apple Pay's use in transportation, Bailey called it "fantastic" and said, "People love it." People are already using it to pay for subway or bus fares wherever Apple Pay is accepted. Bailey said the ultimate goal for Apple Wallet is that "in the future you can leave your physical wallet at home."

Apple has refined the core technology behind its wallet app, but there's more to be done. Beyond digital keys and digital IDs, Apple Pay will offer more features in the future, aiming to become an integral part of users' lives. Bailey confidently stated that Apple Wallet will be the "universal key" in people's hands, unlocking a more convenient and secure future.