1. As completely as possible, sketch the value delivery network for Apple Pay.
2. With respect to Apple Pay, is Apple a producer, a consumer, or an intermediary? Explain.
3. Identify all the reasons why Apple's partnerships are essential to the success of Apple Pay.
After years of predictions that mobile payments would replace cash and credit cards, there are finally signs that it might be happening, with Apple Pay leading the way. Although Apple Pay is quickly gobbling up market share, Apple is far from being the first to market. This case highlights how Apple jumped into the market and vaulted right over the competition. Taking advantage of its vast network of loyalists and strong distribution relationships, Apple designed a product with security measures that have allowed skeptical U.S. customers to trust digital payments.