Jefferies: Apple Pay 2.0 To “Boost Consumer Interest”

Ahead of Apple Inc.’s upgrade to Apple Pay 2.0, Jefferies notes great consumer confidence over improvements

Jefferies, investment firm published a research note detailing Apple Inc.’s (NASDAQ:AAPL) upcoming, improved Apply Pay 2.0. The firm calls the new and improved mobile payment software to boost consumer interest in the service noting exceptional expansion.

Senior analyst at Jefferies, Jason Kupferberg is bullish over the soon-to-be-reveled next generation Apple Pay version dubbed Apple Pay 2.0. Although, it is important to note the launch date for the updated Apple Pay is not yet announced.

In the research note, Mr. Kupferberg notes, the incoming Apple Pay version is to be embedded with features such as browser based payments method, allowing users to look up facilitating merchants internationally, pitting Apple in competition head-to-head with rivals in the industry niche. Known rivals, are noted as Google Inc’s (NASDAQ:GOOGL) Google Wallet, PayPal and CurrentC’s Merchant Customer Exchange (MCX). Although, it is important to keep in mind that Apple Pay’s international expansion is likely to come with usage fees.Apple Pay 2.0 is also reported to include benefits and rewards for customers as they use the service. The development by Apple will increase user devotion towards the service. Mr. Kupferberg also notes the feature add-ons to Apple Pay will boost Apple’s business model, favorable bottom line implications – hinting at an uplift of at least one percent in earnings per share. The research note goes further, noting Apple to allow room for improving its current network of service.

The research note sets out to explain the necessity of the update by Apple of Apple Pay, as in a recent move, Google reportedly acquired Softcard, a software development firm allowing Google Wallet to come preloaded in Android phones offered by T-Mobile US Inc (NYSE:TMUS), Verizon Communications Inc. (NYSE:VZ) and AT&T Inc. (NYSE:T).

Another emerging competitor for Apple Pay is PayPal’s aspirations of putting itself on the map as the industry pioneer takes over MCX’s Paydiant – Mr. Kupferberg suspects a likely merger between the two. Jumping on the bandwagon, is South Korea’s tech giant, Samsung Elect Ltd(F) (OTCMKTS:SSNLF) announcing the launch of its own mobile payment software.

Apple Pay launched nearly nine months ago, in October 2014. Gaining rapid popularity, the mobile payment software acceptability reached to 700,000 merchants from 220,000 in October.