Chevron Teams with Apple for Mobile Payments at the Pump

by Matt Klassen on December 31, 2014

For several years now mobile payment technology has existed at the periphery of smartphone applications, with every company fighting over form factor and struggling to encourage mass consumer adoption. As many speculated, however, all the mobile payment revolution really needed to garner significant consumer attention was the arrival of Apple.

Since the Cupertino company first introduced its Apple Pay service earlier this year the mobile payment industry has skyrocketed, and it looks like 2015 will be no different, as the company is looking for different ways to make paying with your smartphone the default option. In fact, the next major destination for Apple’s aggressive expansion of its Apple Pay service will likely be the gas pump, replacing the already easy pay-at-the-pump credit card solution with its own convenient mobile option.

Chevron revealed earlier this week through its official Twitter account that the gas company is working closely with Apple to provide Apple Pay service at its stations in the United States. While some other gas retailers currently do provide Apple Pay in store, Chevron is looking to take Apple’s mobile payment service to an entirely new level, replacing the need for traditional payment cards entirely.

The original revelation via Twitter noted that Chevron hopes to have Apple Pay in place at pumps across the country sometime in 2015, a tweet that was subsequently amended to say that no official timetable is currently in place for delivering Apple Pay, only that the gas company was working with Apple to make it happen as soon as possible.

As mentioned, there are several gas companies that currently deploy Apple Pay as an in-store payment method, notably Chevron itself and rival Texaco, but as of yet the service isn’t available at the pump. As TechCrunch writer Darrell Etherington explains, “Card-based payment at the pump is a huge boon for drivers, and NFC terminals built in to the pumps would make it even easier to fuel up with Apple’s new online payment solution.”

Despite the fact mobile payment has been around for several years now, with the fledgling Apple Pay service the Cupertino company can now boast being among the most successful mobile payment platforms available, unifying a market hampered by fragmentation as companies have long battled to secure a default form factor.

“Apple Pay accounted for 1 percent of digital transactions in November according to research firm ITG, which reveals it to be a strong competitor to PayPal, the only other player out there achieving much success,” Etherington notes, a clear indication that Apple Pay has a chance to become the consumer choice for mobile payments.

But while expansion into the realm of at-the-pump gas payments will help Apple rapidly expand its payment service, the true measure of success will be the continued adoption by retailers. “Nothing short of omnipresent acceptance will let it do more than linger in the low single digits of digital transactions,” Etherington writes, and he’s right on the mark.

While Apple has achieved more in six months than most mobile payment services have in four years, the fact remains that in order for widespread adoption to take place Apple Pay needs to become more than a niche option, it needs to become a ubiquitous presence in our lives, easier and safer than credit cards and accepted anywhere people need to pay. If Apple can achieve that, well the mobile payment revolution may finally achieve what it originally set out to do, to radically alter how we spend our money.

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Written by: Matt Klassen. Follow by: RSS, Twitter, Facebook, or YouTube.

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