Why not to use Apple Pay? Disadvantages, Downsizes, and Drawbacks

Apple Pay, a digital wallet striving to replace physical currency, may not be the ideal choice for consumers and merchants. While the app conveniently consolidates your payment methods, eliminating the need for cards or cash, it comes with significant drawbacks.

Millions globally utilize Apple Pay, but before joining the bandwagon, both consumers and merchants should weigh the pros and cons. Despite its undeniable benefits, the platform has notable disadvantages. Here’s why opting out of Apple Pay might be a prudent decision.

Apple Pay’s Security Risks for Consumers

1. Cyberattack Vulnerability

While Apple Pay generally offers robust security against cyber threats, using it on a jailbroken iPhone poses risks. Jailbreaking overrides software restrictions meant for security, potentially enabling hackers to surpass transaction limitations and replicate contactless payments.

It’s crucial to note that any digital system, including Apple Pay, is susceptible to hacking. Questioning the safety of Apple Pay is reasonable, as digital platforms, in general, may face security challenges.

2. Security Risks on Public Wi-Fi with Apple Pay

Apple Pay operates seamlessly using near-field communication (NFC) chips, allowing contactless payments without requiring internet connectivity. While this offers convenience, it introduces a potential security concern.

iPhones automatically search for Wi-Fi connections, and when connected to public networks, your financial transactions may be at risk. Hackers often target insecure public Wi-Fi to exploit unauthorized contactless payments.

Given the swift nature of contactless transactions, users may unintentionally make payments while connected to vulnerable public networks. Checking connectivity status before transactions is not common. To mitigate this risk, it’s advisable to avoid public Wi-Fi, especially during transactions.

You can enhance security by disabling the “Ask to Join” feature. Simply go to Settings > Wi-Fi > Ask to Join Networks, and select Off. This prevents prompts to join unknown public Wi-Fi networks, minimizing the risk associated with insecure connections.

3. Risk of Unauthorized Bypass of Contactless Limits with Apple Pay

Recent research from the University of Birmingham reveals a potential vulnerability in Apple Pay related to payment fraud on Visa cards when the iPhone’s Express Transit mode is activated.

In essence, hackers could exploit this vulnerability to bypass contactless limits on small transactions. For instance, if you use Apple Pay for a low-authentication purchase, such as a train ticket, hackers may illicitly replicate the transaction multiple times without your awareness.

It’s crucial to note that such incidents are relatively isolated. Regularly reviewing your transactions and payments serves as a safeguard against falling victim to this type of scheme.

4. Extensive Personal Data Collection by Apple Pay

Using Apple Pay entails the disclosure of diverse personal information, including standard details like your name and address. Additionally, the company gains access to your transaction history, especially if you use the service frequently.

While Apple asserts that it doesn’t sell user data, it does leverage this personal information for marketing initiatives, such as targeted ads and suggested posts. If you harbor reservations about Apple’s privacy terms, reconsidering the use of Apple Pay may be prudent.

5. Apple Pay Exclusive to Apple Devices

Using Apple Pay is restricted to Apple devices, namely iPhone, iPad, Mac, or Apple Watch. If you transition to an Android device, you lose access to your Apple Pay wallet.

In contrast, Google Pay offers cross-platform compatibility, functioning on both Android and iOS. The limitation of Apple Pay’s integration into Apple’s software underscores the need to commit to Apple’s ecosystem for continued use. Consider this before adopting Apple Pay to ensure compatibility with your device preferences in the long run.

Challenges for Merchants with Apple Pay

For merchants considering Apple Pay for contactless payments, careful consideration is essential to avoid potential issues:

6. Confusion and Frustration Among New Users

While Apple Pay boasts a significant user base, not all customers utilize digital wallets. According to a 2021 eMarketer survey, Apple Pay had 43.9 million users in the US. However, expecting all customers to adopt this payment method is unrealistic.

Merchant Tip: Be prepared to offer alternative payment options. Additionally, be mindful of potential delays when assisting customers unfamiliar with Apple Pay, as it may counter the intended benefits of swift and seamless transactions.

7. Risk of Failed Transactions Due to Card Clash

Swift contactless payment systems, including Apple Pay, are prone to “card clashes,” a phenomenon where multiple payment solutions interfere with each other’s transactions. This is particularly common with recently introduced contactless technologies.

While not exclusive to Apple Pay, this issue becomes more likely if a customer stores their contactless card with their phone. The result can be duplicated payments, charges from the wrong source, or transactions that fail to process. Such occurrences pose administrative challenges and may disrupt the smooth operation of your business.

8. Implementation Costs for Merchants Accepting Apple Pay

While Apple Pay doesn’t impose direct fees on merchants, there are implementation costs to consider, including:

• NFC Payment Terminal: To accept Apple Pay, you may need to invest in an NFC payment terminal, either through rental or outright purchase. If your existing payment hardware supports contactless payments, this cost may be avoided.
  Tip: Utilizing your current iPhone with apps like Square Point of Sale allows contactless payments via Apple Pay’s Tap to Pay feature, potentially eliminating the need for additional hardware.
• Staff Training: Implementing Apple Pay requires training your staff on the system, adding an additional cost consideration.
  Note: While these costs may not be prohibitive for some businesses, it’s essential to factor them into your decision-making process.

Conclusion: Evaluating the Worthiness of Apple Pay

While contactless payments, epitomized by Apple Pay, offer expedited checkouts, it’s crucial not to dismiss their accompanying drawbacks in pursuit of convenience.

Despite the disadvantages outlined, the decision on whether Apple Pay is worth it depends on weighing the benefits against the risks. It’s noteworthy that Apple is likely to enhance the features and security of Apple Pay in the future, potentially influencing your assessment of its overall value.