NEW YORK (TheStreet) -- Apple Pay is set to become a game-changer in commerce even though it may take a few years to fully catch on.
According to a new in-depth report from Morningstar, the new service -- one that allows certain Apple devices to pay for goods and services during checkout at brick-and-mortar retail and online stores -- will create a ripple effect for everyone involved from end users to merchants, card issuers and networks and especially Apple (AAPL) . But, Morningstar analysts warn the new technology "may take many years before reaching full adoption by merchants and consumers." The report states that Apple Pay's "medium-term potential" to the company's top line appears "somewhat muted."
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Currently, Apple Pay can be used on an iPhone 6, 6 Plus, an Apple Watch (arriving early in 2015) or an iPad Air 2 or iPad mini 3. iPhone 5, 5s and 5c fans will also be able to use the payment system by connecting through an Apple Watch. The actual transaction is handled with a quick swipe via a brief NFC (Near Field Communication) connection and is authenticated by the user's fingerprint on their device's TouchID sensor. The idea is to replace the credit and debit magnetic stripe card system with swipe of an newer Apple device. Card issuers including Visa (V) , MasterCard (MA) and American Express (AXP) are already an integral part of the program.