Apple Pay’s Uncopyable Business Model Delivers What Nobody Else Could

This is the fourth post in our Codified News series where we take recent business news and codify the information using Strategyzer's visual tools. This post is a continuation of the previous Codified News post, Apple Pay: An Obvious Value Proposition. It focuses on last week's launch of Apple Pay in the US and is derived from a series of articles published in Bloomberg following the Apple Pay announcement in early September.

Tools and Techniques Used

• Business Model Canvas
• Color-coding based on customer segments
• Story-telling one sticky note at a time

News Articles

• Apple Said to Reap Fees From Banks in New Payment System
• American Express and Visa Love Apple Pay. Will Consumers?
• Why Rite Aid and CVS Stopped Taking Apple Pay

Critical Elements

1. Apple launched its mobile payments platform, Apple Pay, in the US on October 20, 2014.
2. By focusing on consumer's jobs, pains, and gains Apple designed a better mobile payments value proposition.
3. The value proposition enables the business model; the business model enables the value proposition.
4. Apple business model works by:
   a. Creating a seamless, secure payment solution for consumers
   b. Providing merchants access to a large mobile consumer base
   c. Allowing the payments ecosystem to continue to do business as usual
   d. Creating greater fraud protection by partnering with card networks to introduce industry standards around Apple's dynamic security code technology...
   e. thus reducing fraud costs for card issuing banks...
   f. for which they are willing to pay a small percentage of every transaction.
5. Apple "mobilized" the entire payments ecosystem.

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