Mikey Campbell
A report on Wednesday claims Apple is accelerating work on a mobile payments system, or digital wallet, that could be ready by this fall, allowing customers to pay for physical goods with their iPhone instead of a credit card or cash.
Citing sources familiar with the matter, The Information reports Apple is in talks with partner companies to launch a Google Wallet competitor as soon as this fall, with some saying the service may roll out with the so-called "iPhone 6."
The people said Apple is in talks with major credit card company Visa to forge a partnership that could revolutionize the way consumers pay for goods. As noted by the publication, a direct partnership with Visa — or similar company — would be a huge step in bypassing the payment processing chain, saving both merchants and customers money.
With partnership talks ongoing, Apple is also working out the technology behind a mobile payments system. Sources say the Cupertino, Calif. company at one point planned to integrate near field communication modules in its iPhone lineup, though another person claims the system is to rely on Bluetooth and Wi-Fi.
In either case, sensitive customer information would likely be stored in an iPhone's secure enclave, or alternatively in the cloud. Apple has illustrated similar arrangements in numerous patents, one of which describes a Bluetooth/Wi-Fi solution in great detail.
Jibing with today's report, the patent notes credit card information would be stored in the cloud, akin to the method in which users refill or charge to an iTunes account.
Apple has long been rumored to be mulling an entry into the so-called "e-wallet" sector, though the company has taken a "go slow" approach. Competitor Google has charged head-first into mobile payments, integrating its NFC-based Google Wallet solution into the Android mobile operating system, while Apple has slowly rolled out additional functionality in its Passbook app.
Most recently, Apple debuted iTunes Pass, which allows customers to recharge their iTunes accounts via Passbook by taking an iOS device into any participating Apple Store. Theoretically, if the scan-to-recharge system is broadened to include major retailers, customers would be able to refill their e-wallet while checking out at a store like Target or Walmart. With Touch ID integrated into the mix, mobile payments would be secure, easy to use and, perhaps most importantly, transparent to the end user.
AppleInsider Staff
Malcolm Owen
Oliver Haslam
Andrew O'Hara
Wesley Hilliard
William Gallagher
Christine McKee
38 Comments
[QUOTE]Apple is in talks with partner companies to launch a Google Wallet competitor as soon as this fall, with some saying the service may roll out with the so-called "iPhone 6." [/QUOTE] And not a moment too soon. Pretty much all of the pieces are in place for an Apple disruption of mobile purchase (and retail in general). Touch ID authentication and Touch ID API in iOS 8, Secure Enclave on-device encrypted storage, hundreds of millions of iTunes accounts with credit card numbers, Passbook for virtual vendor loyalty cards, iBeacon for in-store navigation and notifications, and EasyPay for zero-wait purchase and checkout (as used in 428 Apple Stores around the world). And who knows what else is in the works. Oh, and as for Google Wallet, I've never actually seen anybody using it. I see plenty of people using Passbook, and use Passbook frequently myself. At Starbucks, AMC theaters, CVS, AT&T Park, etc. So far only Starbucks allows for purchases though. But that can and will change.
"...saving both merchants and customers money." Heard that one before.
I just don't believe it's going to happen unfortunately.
As far as I can see, the only way putting payment into a phone would work, would be if the phone companies could all agree on a standard, so that one "receiver" at the merchant could handle all phones. It's not going to work if the merchant has to have one device for people with Apple phones, another for people with Android phones, another for people with Windows phones etc. as well as the existing one for cards.
Much though I'd love to be able to get rid of my wallet and go entirely electronic, I just can't see it happening.
I'm just ready for the day where all I need when I leave the house is my phone. I'm tired of keys and wallets. We're almost there.
I just don't believe it's going to happen unfortunately.
As far as I can see, the only way putting payment into a phone would work, would be if the phone companies could all agree on a standard, so that one "receiver" at the merchant could handle all phones. It's not going to work if the merchant has to have one device for people with Apple phones, another for people with Android phones, another for people with Windows phones etc. as well as the existing one for cards.
Much though I'd love to be able to get rid of my wallet and go entirely electronic, I just can't see it happening.
If apple has a deal with Visa, it wouldn't make sense to accept anyone else until they came up with their own deals. Visa can give you a 'card number' for your phone so its kind of like having an iTunes credit card, except instead of swiping it, it connects to your phone (they had Blink tech a few years back that all you needed to do was tap your card). Companies can still accept regular cards for android users, no one is going exclusive to this, plus you don't need to convince every merchant, you need to convince the banks who do their merchant services to just have this on their terminals