Case | HBS Case Collection | August 2015 (Revised December 2016)

Apple Pay

by Sunil Gupta, Shelle Santana and Margaret L. Rodriguez

Abstract

On September 9, 2014, in front of a packed audience in Cupertino, CA, Tim Cook, the chief executive officer of Apple, announced the much anticipated launch of Apple Pay. "Our vision is to replace this [wallet] and we are going to start with payments." Cook then invited Eddy Cue, Apple's senior vice president of Internet Software and Services, to the stage to explain how Apple Pay would transform the mobile payments industry. He explained how Apple Pay would allow consumers to complete the check-out process within apps with a single touch, and without needing to repeatedly enter credit card information, the billing address, or shipping address.
On October 20, 2014, U.S. consumers could start using Apple Pay in stores with their iPhone 6 or iPhone 6 Plus (and later Apple Watch) and within apps using iPhone 6, iPhone 6 Plus, iPad Air 2 and iPad mini 3. By March 2015, Apple Pay was accepted in 700,000 retail locations including Coca-Cola vending machines. "We are the fastest adopted mobile payment service by a long shot," noted Jennifer Bailey, vice president of Apple Pay. However, Cue and Bailey were aware that the landscape of mobile wallets and payment services was littered with failures. Reflecting on these challenges, Bailey wondered, "What should Apple do to continue the early momentum for the adoption and use of Apple Pay?"

Keywords: marketing; technology; digital services and strategy; product launch; launch; mobile; mobile payments; Apple; Credit Cards; finance; payments; smartphone; apple pay; eddy cue; jennifer bailey; iOS; iphone; Marketing; Product; Mobile Technology; Product Launch; Finance; Credit Cards; Wireless Technology; Technology Industry; Banking Industry; United States; United Kingdom;

Citation:

Gupta, Sunil, Shelle Santana, and Margaret L. Rodriguez. "Apple Pay." Harvard Business School Case 516-027, August 2015. (Revised December 2016.)