Obama announces his support for Apple’s FinTech
After most of Silicon Valley (except for Apple) snubs Obama’s cybersecurity conference, the U.S. president has professed his love of Apple Pay, but has forgotten to mention Samsung Pay. #awkward
Apple’s venture into payment methods has received a major boost from the White House. U.S. President Barack Obama announced that the U.S. government would now also accept Cupertino’s new payment system for social security benefits and other transactions with federal payment cards.
Apple’s mobile payment rival Samsung, who recently announced their “Samsung Pay” venture in collaboration with Visa, was conspicuously absent from the White House cybersecurity fact sheet:
Apple, Visa, MasterCard, Comerica Bank and U.S. Bank are committed to working together to make Apple Pay, a tokenized, encrypted service, available for users of federal payment cards, including DirectExpress and GSA SmartPay cards.
Last week, Apple’s Tim Cook was also given a 15-minute slot during the White House Summit on Cybersecurity and Consumer Protection to speak about Apple’s innovation. Google, Yahoo! and Facebook turned down their invitations as a statement of their mistrust in government tech politics.
This latest milestone for Apple’s venture into payment technology comes after the company announced that 200,000 self-service stations across America would be accepting their iPhone-based payment method. The Cupertino lab, which is now reportedly working on a secret self-driving car, announced their research in the field of payment technology in September last year.
Apple Pay’s bumpy start
In spite of some significant successes, Apple Pay has suffered several hiccups since its launch. Two major U.S. drugstore chains have pulled their support for Apple Pay, while some users have complained about getting charged twice for the same purchases.
As with most new technologies, news of Apple’s payment technology has been met with security concerns. Apple Pay does not store credit card data on a user’s iPhone, even in encrypted form. However commentators have questioned Apple’s alternative method, which might allow credit card thieves to use stolen Apple Pay ID numbers like stolen credit cards.
Meanwhile, it has been speculated that Google is researching biometric voice recognition technology for its answer to Apple Pay.