Apple iPhone 6: Mobile Payments Pioneer? - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Mobile // Mobile Business
News
8/30/2014
08:06 AM
50%
50%

Apple iPhone 6: Mobile Payments Pioneer?

Apple's latest iPhone could help bring mobile payments to the mainstream.

8 Things We Want In iPhone 6
8 Things We Want In iPhone 6
(Click image for larger view and slideshow.)

The tech industry has made a number of attempts to ignite interest in mobile payments, and so far all have fizzled out. Sure, Google Wallet is still around, and Isis is available on a wide range of smartphones, but almost nobody uses them to pay for real goods in real stores. Apple, which might add such functionality to the iPhone 6, could change that.

The company has scheduled a media event for Sept. 9, when it is widely expected to debut two new iPhones and a smartwatch. The next-gen iPhone will differ from previous devices in many ways. Though many consumers may fixate at first on the larger screens (4.7 inches and 5.5 inches), others will be thrilled to learn the iPhone 6 adds NFC for the first time. NFC and mobile payments "will be one of the hallmark features of the device," according to Wired, which cited sources familiar with Apple's plans.

Not only will the device have the necessary components for mobile payments, but Apple is also well positioned to debut its own mobile wallet. As Wired points out, Apple has more than 800 million credit cards on file through iTunes. Further, it has invested in its Bluetooth-based iBeacon technology and has a massive user base eager to adopt new technology. Apple has patented ways for NFC and Bluetooth to communicate with a "secure element" -- needed to protect user identity and bank account data -- within the device, and Apple has held discussions with payment companies in recent months.

[Will Apple's upcoming smartwatch also give the wearable device market some much-needed disruption? LG, Samsung Debut Smartwatches, Apple Lurks.]

These signs all point to one logical conclusion: Mobile payments are about to take off.

Today's solutions are laudable but clunky. Google Wallet, for example, requires NFC and a Google Wallet account to function properly. Sadly, few retailers accept Google Wallet at their terminals. The same is true of Isis (which is rebranding for obvious reasons). It launched in November and is available on millions of devices throughout the US. The effort is backed by AT&T, T-Mobile, Verizon Wireless, and a growing number of retailers. But those retailers are still too few and far between -- "Pay with Isis" signs are hard to find in the real world.

Visibility is a real problem for mobile payments, and that's where Apple can differentiate and possibly succeed.

Consider its own retail stores. Apple Stores are found throughout the world, and Apple could easily allow iPhone owners to enter one and make a purchase by simply tapping their iPhone to another device. Then there's Passport, Apple's loyalty card account management system. Apple could give Passport-enabled apps preferential treatment when it comes to making mobile payments, or even just gently remind iPhone owners that they can use their device at the register. Apple has already given the iPhone a fingerprint sensor for security. The iPhone 6 will surely carry that feature over to help reassure iPhone owners that their data is safe and protected with their unique biometrics.

All the pieces of the puzzle are lining up for Apple and mobile payments. If Apple is able to convince iPhone users to make mobile payments, perhaps other mobile payment services will see a boost, too.

If the world wasn't changing, we might continue to view IT purely as a service organization, and ITSM might be the most important focus for IT leaders. But it's not, it isn't and it won't be -- at least not in its present form. Get the Research: Beyond IT Service Management report today (free registration required).

Eric is a freelance writer for InformationWeek specializing in mobile technologies. View Full Bio

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
Comments
Oldest First  |  Newest First  |  Threaded View
<<   <   Page 7 / 7
Rocwurst
50%
50%
Rocwurst,
User Rank: Apprentice
9/15/2014 | 10:33:41 AM
Re: Apple's already destroyed market share
"in 3Q2013 Apple's market share was 12.1% (2% decrease YoY) of the revenue"

You're confusing unit sales marketshare with revenue.  They are not the same considering that 60% of Android devcies are worth below $200 vs the vast majority of iPhones cost greater than $600.  

As a result, it is not surprising that Apple captured 85% of the profits of the entire mobile phone industry last year, up from 72% the year before.

Considering the iOS platfrom is so large (closing on 1 billion devices) and growing at such a large rate (quarter of a billion per year) and making the lion's share of manufacturer and third party ecosystem revenue and profits, why would Apple want to change their policy of only targeting the premium high-end market just to gain "market share"?
WaqasAltaf
50%
50%
WaqasAltaf,
User Rank: Ninja
9/21/2014 | 2:01:23 AM
Re: Apple's already destroyed market share
Shakeeb, how do you foresee Apple's marketshare in the smartphone industry in a five year term ? Declining or growing ?
SchwarzV703
50%
50%
SchwarzV703,
User Rank: Apprentice
9/22/2014 | 6:52:25 PM
iPhone 6
I bouth already an iPhone 6 and i must admint that is working perfect , no problems , moving smoothly , and the price is quite acceptable on www. mobiles-world .com/ . Delivery arrived in 5 days , it took some time but i must say BIG THANKS to their team who always helped me with any questions i had about my order ! 
pcharles09
50%
50%
pcharles09,
User Rank: Ninja
9/22/2014 | 9:53:49 PM
Re: Wait, What?
@shakeeb,

I'd say at least give them the benefit of the doubt.
pcharles09
50%
50%
pcharles09,
User Rank: Ninja
9/22/2014 | 9:55:02 PM
Re: Wait, What?
@jgherbert,

Guess you were right. Since iWallet was one of the only "NEW" features of the 6.
<<   <   Page 7 / 7
News
COVID-19: Using Data to Map Infections, Hospital Beds, and More
Jessica Davis, Senior Editor, Enterprise Apps,  3/25/2020
Commentary
Enterprise Guide to Robotic Process Automation
Cathleen Gagne, Managing Editor, InformationWeek,  3/23/2020
Slideshows
How Startup Innovation Can Help Enterprises Face COVID-19
Joao-Pierre S. Ruth, Senior Writer,  3/24/2020
White Papers
Register for InformationWeek Newsletters
Video
Current Issue
IT Careers: Tech Drives Constant Change
Advances in information technology and management concepts mean that IT professionals must update their skill sets, even their career goals on an almost yearly basis. In this IT Trend Report, experts share advice on how IT pros can keep up with this every-changing job market. Read it today!
Slideshows
Flash Poll