The lion's share of early Apple Pay transactions will probably be in-app, rather than made at retail stores, admits Apple's Senior VP of Internet Software and Services, Eddy Cue. Over the weekend, Cue spoke with the Wall Street Journal
about the service, which launches today
. In fact, many of Apple's merchant partners have yet to receive point-of-sale terminals compatible with Apple Pay, but the company is expecting
them to upgrade within the next year.
Another issue is card compatibility. While most major credit and debit cards will be supported, corporate credit cards, prepaid cards, and store cards won't be compatible initially. A spokesman for Macy's, Jim Sluzekwski, says only that he expects Apple to add support for his store's card eventually.
Separately, sources for Digiday claim
that Apple is planning to integrate Apple Pay into iAd. That would mean allowing marketers to embed "tap to buy" buttons into ads, including ads retargeted based on in-app behavior
. The integration is forecast to happen by the end of 2014.
Using Apple Pay will require iOS 8.1, also arriving today. Supported devices will initially be limited to the iPhone 6 and 6 Plus, the iPad Air 2, and the iPad mini 3. Just the iPhones will be able to make retail swipe transactions, since they have the necessary NFC hardware.