Cupertino – Apple Inc. has planned to partner with Credit Card providers like MasterCard, Visa Inc. and American Express Inc. in a bid to turn its next iPhone 6 into a mobile wallet. The new iPhone 6 will include a near communication chip, which will ease mobile payments. The phone will also feature Touch ID, a fingerprint recognition reader that shall allow secure payment for consumers with the touch of a finger.
There has been no official confirmation from either MasterCard, Apple, Visa or American Express regarding this development.
Crain’s quoted Ben Bajarin, an analyst for Creative Strategies LLC in San Jose, California, who shared that though Google Inc. have created a more secure environment for payments through phone is a physical store, U. S. retailers have not been very eager to implement the knowledge. But with Apple’s entry things will change, with iPhone having the largest share in the market.
“Love it or hate, Apple drives a lot of standards in the industry. They are the mover in these markets. When they do something, the industry seems to follow,” said Mr. Bajarin. The talks between Apple and Visa become public after TheInformation.com reported them.
According to Mr. Bajarin, Apple’s wants to retain its customers and also generate demand, and that’s why it wants to create a mobile wallet. “It’s about retention, solving and adding features that keep your base engaged and keeping them loyal,” Crain quoted him.
With mobile payment going secure, Apple will also be apple to generate more revenue from the 800 million global iTunes accounts, said Richard Crone, chief executive officer of Crone Consulting LLC, which advises retailers and banks on mobile-payment solutions to Crain. According to Crone, Apple will be able to generate $300 annually from advertising.
The success of the Apple depends on the retail industry which is not very keen on sharing data they acquire during transactions to a third party. Though a company was formed in 2012, by a group of chains such as Wal-Mart Stores Inc. to build mobile payment system, nothing has come out of it yet. “There’s huge potential with Apple having a market- defining opportunity. There’s lots of moving parts in payment that make the deals they did with artists and Hollywood for iTunes look like child’s play,” Crain’s quote Mr. Crone.