Apple Inc. (NASDAQ:AAPL) is still a buy, notes an investor letter from UBS, but the company may have to change some of its guiding principles on user privacy in order to fully benefit from Apple Pay.
There is a troika of needs in the mobile payment space: merchants wants low fees, banks want low fraud, and consumers want convenience. Each of these constituents have different motivations but one group holds sway over all.
Merchants do get excited about Apple Pay
"All new payment types start with merchant acceptance," Mobile Pay expert Richard Crone said in the UBS report. The problem for Apple is that, since merchants are not responsible for fraud, Apple Pay does do much to get merchants excited.
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