Whether you’re a consumer or a merchant, we think that you should ponder that question carefully. Though Apple Pay has undeniable benefits, there are also plenty of drawbacks. So, here’s why you shouldn’t use Apple Pay.
Apple Pay’s Disadvantages as a Consumer
As a consumer, you might face the following security threats if you rely solely on Apple Pay.
1. Vulnerability to Cyberattacks
Generally, Apple Pay is a safe, secure system resistant to cyberattacks, making it an excellent mobile payment option. However, jailbreaking your iPhone overrides the software restrictions that also serve as security.
If you have a jailbroken iPhone, think twice before using Apple Pay. Hackers might override your transaction restrictions and duplicate your previous contactless payments.
2. Public Wi-Fi Connections Compromise Security
Apple Pay uses NFC chips to execute contactless payment transactions, so you don’t need internet connectivity. This is fantastic, as you can use it without restriction.
However, iPhones automatically search for available Wi-Fi connections by default. Public networks are often targeted by hackers and criminals waiting to override insecure financial transactions—such as unauthorized contactless payments.
You might accidentally use your device for Apple Pay without noticing it’s already connected to a public network. After all, contactless transactions happen pretty quickly. Not many people bother checking their phone’s signal and connectivity status before paying.
Fortunately, you can quickly resolve this issue by turning the Ask to Join feature off. Go to Settings > Wi-Fi > Ask to Join Networks, then select Off. Once you enable this setting, even known networks will not be automatically connected.
3. Potential to Bypass Contactless Limits Without Authorization
Research from the University of Birmingham exposes Apple Pay’s susceptibility to payment fraud on Visa cards when the iPhone’s Express Transit mode is enabled.
Essentially, hackers can potentially bypass the contactless limits on small payments. For instance, let’s say you used Apple Pay to purchase a train ticket. Since it requires minimal authentication, hackers can override the transaction and replicate it multiple times without your knowledge.
Fortunately, these issues are relatively isolated. As long as you review your transactions and payments regularly, you won’t fall victim to this scheme.
4. Apple Collects Significant Personal Data
Apple Pay requires you to disclose various personal information. Apart from the standard data like your name and address, the company will also access your transaction history—which could amount to a lot if you use it frequently.
Although Apple does not sell user data, it utilizes your personal information for marketing purposes (i.e., targeted ads, suggested posts, etc.). You might want to reconsider using Apple Pay altogether if you doubt Apple’s privacy terms.
5. Apple Pay Only Works on Apple Devices
Although it seems pretty obvious, this point’s worth noting. If you want to use Apple Pay, you must use an Apple device, either an iPhone, iPad, Mac, or Apple Watch. That means you won’t be able to use the service if you decide to switch to Android from iPhone, for example.
The day you move is when you lose access to your Apple Pay wallet. Apple’s nemesis, Google, does it better since you can use Google Pay to make payments on Android and iOS. However, this is all due to how Apple Pay works (it’s integrated into Apple’s software). So, before you start using Apple Pay, ensure you’re ready to embrace Apple’s ecosystem for the long haul.
Apple Pay’s Disadvantages as a Merchant
Think twice before relying solely on contactless payments provided by Apple Pay if you own a shop or merchant account. Otherwise, you’ll put your payment system at risk of the following:
6. Confusion and Irritability Among New Users
According to a 2021 survey by Finder, 150 million Americans use mobile wallets to cover their expenses; less than half of this population has Apple Pay installed.
As a result, you can’t expect all your customers to use a digital wallet like Apple Pay. You need to be prepared to offer alternative payment methods.
You might also face some issues if you chance upon customers using Apple Pay for the first time. You’ll likely spend more time checking out customers if they need help with their payments—defeating the purpose of Apple Pay: fast, seamless transactions.
7. Failed Transactions Due to Card Clash
Fast-moving, contactless payment devices face a high risk of “card clashes.” This issue arises when two or more payment solutions interfere with each other’s transactions—often with newly released contactless technologies.
While this isn’t a flaw unique to Apple Pay, it is especially susceptible if, for example, a customer stores their contactless card with their phone. This can cause payments to be duplicated, taken from the wrong source, or not processed—all of which will provide annoying admin overhead for your business.
Is Apple Pay Worth It?
Although contactless payments make checkouts significantly quicker, they also have their fair share of disadvantages. So, don’t overlook them for the sake of convenience.
That said, you might find that the benefits of Apple Pay outweigh the risks—and Apple is sure to improve Apple Pay’s features and security over time.
