Apple's new NFC payment system thought to be dubbed iPay, is primed for success
Mr. Moskowitz isn’t going too far out on a limb here; Apple has been working on NFC payments since at least 2010, when it hired Benjamin Vigier, a veteran of the successful adoption of NFC in Japan. Apple in fact coined the term iPay in a series of patents they filed that describe “a comprehensive mobile payments, mobile commerce and mobile marketing business based around an NFC-enabled iPhone.” They may face a trademark conflict with the similarly named online bill-paying company, but that’s never stopped Apple before.
For the 250 million customers with credit cards already entered in iTunes Apple can make it one-click-simple to add their cards to an iPay system, which should help speed up adoption. One potential roadblock would be if any of the carriers backing ISIS attempt to thwart Apple the way Verizon kept Google Wallet off of their version of the Galaxy Nexus. We expect there will be some posturing behind closed doors, but Apple has generally had more success pushing the carriers around rather than vice versa.
Mobile payments is one area where Apple can really benefit from their vertical market position of having one phone that sells well, rather than Android’s horizontal market positioning of lots of different phones that cumulatively sell well – a blockbuster iPhone 5 will mean lots of NFC-equipped iOS devices in a short period of time, quickly making up any lost ground in terms of NFC adoption. Within a quarter or two of launching an NFC-equipped iPhone Apple will probably have more iPay-equipped phones than any competing digital wallet system (outside of Japan, anyways).
Will iPhone users flock to iPay, or will there be pushback against the adoption of mobile payments? That will depend on how well Apple implements their iPay system, and how well they market it to customers. Marketing to the faithful has been one of Apple’s strengths, so if they can leverage Mr. Vigier’s success at creating popular NFC solutions, they have every chance of leaping to the forefront of mobile payments.
source: Redmond Pie
2. Cosmo (Posts: 32; Member since: 03 May 2012)
"Apple can really benefit from their vertical market position of having one phone that sells well, rather than Android’s horizontal market positioning of lots of different phones that cumulatively sell well "
-this is so true! well, really, Android sucks
12. ayephoner (Posts: 832; Member since: 09 Jun 2009)
the thing that both 'sides' fail to realize is that they just offer different ecosystems. you may swear by one, but that doesnt make the other one 'sucky'.
in fact, you should be very, very happy that the other ecosystem exists, because both have gone a very long way in pushing the other forward.
22. protozeloz (Posts: 5191; Member since: 16 Sep 2010)
Don't sweat it, he is not even trying to be logical in here.
You still have a Gnex? Tried wallet?
23. ZEUS.the.thunder.god (unregistered)
well said. +1
6. speckledapple (Posts: 874; Member since: 29 Sep 2011)
I can understand why Apple would make an impact with certain technologies as they have a closed but large system of users. But the success of it would not be of question as most if not all of their users would use it. The reason is simple, just like Siri, Apple users will try and utilize the best of their device (though it is no different than most any other phone user). Anything considered "new" would most likely be used just because. Although there are some exceptions, (the music social sharing system ping comes to mind) most users will use the tech anyway. Thus, it just makes sense that it would be a success for Apple users.
7. Atrixboyyy (Posts: 216; Member since: 03 Nov 2011)
I really don't have any faith in this or any nfc type of payment to be a "success" it will be one of those services that sound like they will hit the ground running but then die out not saying it will get killed off just that it will be nothing to blog about.
9. bella92108 (Posts: 8; Member since: 06 Apr 2012)
Like the credit card? People said the same as you about the credit card and debit card, and look how unsuccessful those turned out to be.
13. iamcc (Posts: 1319; Member since: 07 Oct 2011)
Why? Have you used it?
I go to CVS or Walgreens at least a couple times a week and occasionally McDonald's. They all have NFC near me and it is GREAT to be sitting in line (naturally on my phone) and I literally just tap the phone on the pad when I have to pay.
It takes.... one second. Maybe three. Normally I would have to get my wallet out, open it, take my card out, swipe it, enter my pin (or sign) put it back in my wallet, close the wallet and put it back in my pocket.
f**k that noise.
37. remixfa (Posts: 13885; Member since: 19 Dec 2008)
im just sketchy on the new tech... security and all. i have too much info on my phone as it is. dont need more. Personally I'm going to give it a little while and let other people work out the kinks on this tech.. too much at stake.
58. bvalde09 (Posts: 171; Member since: 22 Nov 2011)
Call me an ignorant but like remix says that is wayyy to much information for my phone. People who use the phone as business, therefore has a lot of sensitive data on it as it is. I would rather keep my card outside my phone. I dont say its a bad thing but what happen if my phone gets stolen?. Would they be able to use my credit card?
59. Atrixboyyy (Posts: 216; Member since: 03 Nov 2011)
Ok thanks for the smart reply, no I have not used it and I didn't say it was not goin to have any users. I'm just saying its not going to be anywhere near a credit/debit card in the next 5 yrs.
I doubt it will overcome the current forms of payment but then again its apple wonder how many lazy, tell me what to do and where to eat iDrones shop at McDonald's lol I joke I joke.
But in all seriousness I don't believe it will be as good as they think or say when saying its "primed for success" whether or you use it means nothing.
8. bella92108 (Posts: 8; Member since: 06 Apr 2012)
I think it'd be great if implemented well. Why not take the worlds largest single-smartphone subscription base and create a means to pay? The merchants have been very slow to adopt NFC, but if Apple got into the game I bet they'd get on board VERY quickly.
10. -box- (Posts: 3470; Member since: 04 Jan 2012)
Reminds me yet again of the Futurama episode "Attack of Killer App" (one of my favorites, Season 6, episode 3 if you want to watch).
Fry gets an ad on his eyePhone for Mom's Cuastic Anti-Fungal Bleach to treat his underarm fungus, and he asks the ad, "Can I somehow charge it to my eyePhone for an additonal fee?"
Anyone who likes a good jab at apple should watch that episode
33. InspectorGadget80 (Posts: 5178; Member since: 26 Mar 2011)
HILARIOUS EPISODE. Even the EYE-PHONE.
24. bucky (Posts: 1100; Member since: 30 Sep 2009)
Admit it, you spent the afternoon thinking that up.
52. networkdood (Posts: 4749; Member since: 31 Mar 2010)
honestly, no, I am very witty in a pinch :-)
14. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)
This is good. I'm for NFC payments and once Apple gets behind it it will go mainstream. I would not trust my credit card info on an android phone though.
17. Sniggly (Posts: 6219; Member since: 05 Dec 2009)
My debit cards have all been attached to Google for over a year. I've never had a problem with account security with them.
How typical. On Android: "meh, NFC." On Apple: "f**k YEAH NFC!!!"
18. iamcc (Posts: 1319; Member since: 07 Oct 2011)
Besides, I don't put my credit card on my phone... I just load about $50 onto Google Wallet's prepaid every other week or so.
21. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)
I'm not the only one who feels that way. There's a lot of people who wouldn't touch android with a 10 foot stick when it comes to their personal data.
25. Sniggly (Posts: 6219; Member since: 05 Dec 2009)
And a lot of people think Obama is the Antichrist.
I've never heard of someone's financial information being compromised via Google.
The closest they get is malware which reads info on the phone itself, which card information is not part of. Furthermore, it's hard to get malware on your device to begin with.
27. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)
Lol why do you keep bringing up remix?
"And a lot of people think Obama is the Antichrist."
30. Sniggly (Posts: 6219; Member since: 05 Dec 2009)
He's never said that.
Lovely how little of value you have to say in your responses to me on this subject.
36. protozeloz (Posts: 5191; Member since: 16 Sep 2010)
Shows his actual lack of debatable skills
41. remixfa (Posts: 13885; Member since: 19 Dec 2008)
again, whenever you quote someone, make sure to back it up with evidence
where is your evidence of me ever saying that taco?
48. remixfa (Posts: 13885; Member since: 19 Dec 2008)
you know i cant say no to a party! :)
4 years of thinking and talking about me 24/7.. you would think he would send me flowers or something. Maybe mommy thinks he isnt old enough to date? lol
47. gwuhua1984 (Posts: 1237; Member since: 06 Mar 2012)
You got to have him make sure that his evidence is "VALID". Read through the sources and make sure the evidence used is providing "VALID" data.
26. protozeloz (Posts: 5191; Member since: 16 Sep 2010)
considering the time iTunes has online I think the numbers are doing quite good for Google when it comes down to people trusting Google with its money
an this around 8 months old data, now why I shouldn't trust Google with my data. so far I have no issues
29. kingpet13 (Posts: 139; Member since: 02 Feb 2012)
And they would trust apple? According to this study only ten percent of people would trust them with all thier personal info. I am guessing that google would have more trust than that.
40. remixfa (Posts: 13885; Member since: 19 Dec 2008)
didnt the last study that came out say that people trusted google a lot more than they trust apple with their personal info?
yea, im pretty sure it did.
besides, if apple was so secure, it wouldnt have so many security flaws. It would also be used by the government, but only RIM and Android are certified. Funny that sounds completely opposite of what Taco says. I bet he knows more than people that deal with security... thats it.
42. kingpet13 (Posts: 139; Member since: 02 Feb 2012)
50. remixfa (Posts: 13885; Member since: 19 Dec 2008)
yup.. thar it be. 90% of the people do NOT trust apple with their money. only people heavily invested in apple products said yes. lol.
60. mrochester (unregistered)
I wouldn't trust my money with Apple as they have no history of being a bank. It's really rather irrelevent though since NFC payment capabilities wouldn't require Apple to be a bank; the payment process would still be handled by the banks in question, Apple would simply be supplying the infrastructure to make it happen.
31. taz89 (Posts: 1772; Member since: 03 May 2011)
Are you a Google hater? Or do you just love apple so much.
34. InspectorGadget80 (Posts: 5178; Member since: 26 Mar 2011)
No matter WHAT PHONE you have their always be a security threat when it comes to mobile payment on your phone.
38. remixfa (Posts: 13885; Member since: 19 Dec 2008)
taco, your mom's credit card is not your credit card.
51. Non_Sequitur (Posts: 1111; Member since: 16 Mar 2012)
Android has been proven to be more secure than iPhones. That's why the MILITARY is going to be using secure Androids.
You don't trust Google with your credit card number? That's like saying you don't trust the bank with your money.
Just another comment from taco. Sigh.
53. networkdood (Posts: 4749; Member since: 31 Mar 2010)
wow, taco...I have my credit card on play market...in case I ever buy something...safe and secure...
55. remixfa (Posts: 13885; Member since: 19 Dec 2008)
come to think of it.. so do i. i have for so long, i dont even think about it.. i just buy stuff at will. HAHA. woopsie. Still not ready to try NFC just yet :)
wait.. if the Play store already has my CC info, is that going to feed into NFC or do i have to manually activate that separately?
16. appleDOESNT.com (Posts: 354; Member since: 19 Nov 2011)
another raw raw apple article from iOSarena.. go figure
44. Scott_H (Posts: 167; Member since: 28 Oct 2011)
If you knew me you wouldn't accuse me of being an iOS fan - it's just a fact that Apple's vertical market strategy will work to their benefit in this case. In other situations it doesn't.
49. remixfa (Posts: 13885; Member since: 19 Dec 2008)
if it helps, i totally vouch for Scott being impartial :) Havent dinged him once for showing heavy favoritism.
19. dcgore (Posts: 190; Member since: 24 Feb 2012)
Cool. So does this mean i won't have to go to the atm every time i want to pay my drug dealer?
28. kingpet13 (Posts: 139; Member since: 02 Feb 2012)
I am sure that when this is released everyone will think apple came up with the idea. This will become a good example of how if something comes out on apple they are given full credit for the "innovation" wether thier version is better or worse. (Yes I will admit that apple has probably upgraded some of androids ideas and android has done the same to apple)
This is my prediction.
39. remixfa (Posts: 13885; Member since: 19 Dec 2008)
iPay, you pay.. we all pay for iPay!
now we will hear taco and gallito talk about how apple invented NFC. "its not a mobile payment market, its an apple payment market" and other such troll nonsense.
45. iamcc (Posts: 1319; Member since: 07 Oct 2011)
Apple will probably charge you a 30% "cool tax" to use it.
54. networkdood (Posts: 4749; Member since: 31 Mar 2010)
hey phonearena, when you are you going to ban the NEGATIVE NANCY, known as TACO50?
56. remixfa (Posts: 13885; Member since: 19 Dec 2008)
every time they ban him, he just creates fake account after fake account. they dont ban by IP for some reason.
57. ThreeFourSeven (Posts: 25; Member since: 23 Nov 2011)
This is going to be successful if it launches because Apple doesn't let anyone touch their phone, period. Look at what happen with the Galaxy Nexus and Verizon.