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Report: Apple prepping its own mobile payments service

Posted: , by Alan F.

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Report: Apple prepping its own mobile payments service
With the large number of Apple iPhone and Apple iPad users, along with the large number of credit cards used to mke purchases on iTunes, the Cupertino based tech giant would seem to have everything it would need to put together its own mobile payment network. This would put Apple on a collision course with other names in this industry, all of which have had a tremendous head start on Apple.Take PayPal for instance. The eBay subsidiary is one of a number of companies that include credit card processor Square, that are expected to drive the growth in mobile payments from $12.8 billion in 2012 to $90 billion by 2017, according to Forrester Research.

Apple's iTunes and App Store head Eddy Cue, has met with executives in other industries in an attempt to smooth the path for Apple's incursion into mobile payments. A trio of sources have also revealed that Apple has given online store executive Jennifer Bailey, the job of starting up this new business. 

The mobile payments industry is taking off. Carl Icahn, who has a $3 billion investment in Apple, has been buying eBay stock. Using the same strategies he has been employing to try to get Apple to buy back $150 billion of its stock, the activist investor is demanding that eBay spin off PayPal as an independent company. Icahn has a high regard for PayPal, calling it a "gem".

Apple does allow iDevice users to pay for books, movies, and music from iTunes. Apps and in-app purchases can also be bought through an iTunes account. Inside Apple Stores, some purchases can be made by scanning an item and paying via a credit card tied to an iTunes account. But what you can't do is buy that snazzy suit or those new sneakers by using your iTunes account. Some suggestions include letting buyers fill out a credit card form for a purchase using card information on file at iTunes. Another suggestion is that Apple use its TouchID fingerprint scanner as a form of an electronic signature to lessen the chance of fraud.

"Apple is absolutely the sleeping giant in the payments world. They have the capability; they just haven't tied it all together."-Denee Carrington, analyst, Forrester Research

If Apple were to make a serious push into this game, it might be able to control the dice pretty quickly. Consider that the company has 575 million registered iTunes users, has sold 375 million iPhones over the last five years, and has rung up 155 million tablets since it launched the iPad in 2010. Apple looked at mobile payments back in 2012, but at the time the company was worried that if a customer had a bad experience with a merchant, the blame could be put on Apple, hurting its reputation.

source: WSJ

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posted on 25 Jan 2014, 00:31 5

1. Topcat488 (Posts: 1396; Member since: 29 Sep 2012)

Now that would be really cool to pull out a Apple credit card... One with that iconic bitten Apple LOGO... Sign me up! Forget MasterCard, forget Visa, look at my Apple Credit Card!

posted on 25 Jan 2014, 00:48 2

3. androiphone20 (Posts: 1654; Member since: 10 Jul 2013)

That'll be in space grey with a shiny reflective logo ;)

posted on 25 Jan 2014, 01:31 3

5. Miracles (Posts: 560; Member since: 31 Aug 2013)

Make that shiny GOLD and reflective...and you've got me.

posted on 25 Jan 2014, 00:40 1

2. androiphone20 (Posts: 1654; Member since: 10 Jul 2013)

I don't know why they have been holding back all this time, it's like a ton of revenue and cash waiting to be found

posted on 25 Jan 2014, 01:26 1

4. frydaexiii (Posts: 1475; Member since: 01 Dec 2011)

Ugh, this is why we can't have nice things...Everyone wants their existing accounts and stuff to work seamlessly with each other, but Apple just has to go out of their way to make this impossible...

posted on 25 Jan 2014, 06:02 3

6. darkkjedii (Posts: 25068; Member since: 05 Feb 2011)

Make the move apple, you've got all that's needed.

posted on 25 Jan 2014, 11:32

7. Killertech2099 (Posts: 148; Member since: 28 Sep 2013)

Not bad apple not bad

posted on 25 Jan 2014, 15:55

8. darkkjedii (Posts: 25068; Member since: 05 Feb 2011)


Very interesting.

posted on 26 Jan 2014, 03:19

9. joey_sfb (Posts: 6631; Member since: 29 Mar 2012)

I temped to pull out an article from Android Authority saying their version of the bull but..

The truth is no body know the future. Samsung leading position in Android might be coming to an end with new players like meizu which manage to capture more market share in china.

They will be entering new markets soon most dominated by Samsung.

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