Apple's new NFC payment system thought to be dubbed iPay, is primed for success

Apple's new NFC payment system thought to be dubbed iPay, is primed for success
Despite Apple’s penchant for secrecy, it has become widely presumed that the new iPhone (which, given the nomenclature of the most recent iPad, may actually be named “the new iPhone”) will come equipped with Near Field Communication (NFC) support. JP Morgan analyst Mark Moskowitz believes that Apple will use the next iPhone launch to roll out a digital payments solution which he expects to be called iPay.

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

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60 Comments

1. steelicon

Posts: 318; Member since: Apr 02, 2011

This is good!

2. Cosmo

Posts: 32; Member since: May 03, 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: 858; Member since: Jun 09, 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: 5396; Member since: Sep 16, 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

32. InspectorGadget80 unregistered

YOU SUCK even more Cosmo

3. PackMan

Posts: 277; Member since: Mar 09, 2012

uPay!!!!!!!!

4. jmoita2

Posts: 930; Member since: Dec 23, 2011

Here goes Apple copying again...

5. VJo003

Posts: 365; Member since: Mar 11, 2012

iPay from my nose

6. speckledapple

Posts: 902; Member since: Sep 29, 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: 603; Member since: Nov 03, 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: Apr 06, 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: Oct 07, 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: 14605; Member since: Dec 19, 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: 191; Member since: Nov 22, 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: 603; Member since: Nov 03, 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: Apr 06, 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: 3991; Member since: Jan 04, 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 unregistered

HILARIOUS EPISODE. Even the EYE-PHONE.

11. networkdood

Posts: 6330; Member since: Mar 31, 2010

Should it not be called: iPay more

24. bucky

Posts: 3790; Member since: Sep 30, 2009

Admit it, you spent the afternoon thinking that up.

52. networkdood

Posts: 6330; Member since: Mar 31, 2010

honestly, no, I am very witty in a pinch :-)

14. taco50

Posts: 5506; Member since: Oct 08, 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.

15. iamcc

Posts: 1319; Member since: Oct 07, 2011

You are too funny taco...

17. Sniggly

Posts: 7305; Member since: Dec 05, 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: Oct 07, 2011

This ^. 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

Posts: 5506; Member since: Oct 08, 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: 7305; Member since: Dec 05, 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

Posts: 5506; Member since: Oct 08, 2009

Lol why do you keep bringing up remix? "And a lot of people think Obama is the Antichrist."

30. Sniggly

Posts: 7305; Member since: Dec 05, 2009

He's never said that. Lovely how little of value you have to say in your responses to me on this subject.

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