Apple Pay - Leading fans up the garden path

Apple Pay - Apple’s digital wallet solution - waving the phone or scratching the watch - is little different from other NFC applications. Apple Pay uses an embedded chip to provide secure NFC. I have a fear that this is a step towards drawing Apple Pay users into a perpetual contract. Unlike a SIM card, an embedded chip cannot be moved to another device. The user will have to continue with Apple products. It will make it harder for an Apple user to switch out. This seems a sure, insidious way of enforcing loyalty. It is not obvious to the user in the beginning. Looks like Apple is leading its fans up the garden path through Apple Pay.

Note on digital wallets, NFC, etc:

Currently there are several digital wallet platforms. The radio-frequency identification (RFID) payment technology is now widely used in credit cards as a direct interface to the chip. It has also been integrated into smartphone retail payment solutions such as Google Wallet, several prepaid payment cards (e.g., German Geld Karte system, the Octopus card in Hong Kong, Oyster card in London). Barclaycard's PayTag - a miniature credit card stuck to the back of a cellphone - turns it into a contactless payment option (currently with a low spend limit). It uses Near-Field Communication (NFC) technology. (Five of the best mobile payment systems are mentioned here:http://www.businessbee.com/resources/profitability/point-of-sale/the-5-best-mobile-credit-card-reader-apps-for-your-small-business/)

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