Will Apple Launch a Payment Ecosystem on November 9 Event?
It is increasingly becoming evident that Apple Inc. (NASDAQ: AAPL) is going to venture into mobile payment ecosystem. The past few weeks has seen a number of sources claim that the much awaited iPhone 6 will have a mobile wallet or something of similar kind. So as investors and other stakeholders look forward to the September 9th event, the question they ask is will Apple unveil its payment ecosystem?
Apple has a glut of opportunities resulting from its massive credit card data. The data includes high user engagement metrics which positions the company strategically to venture into mobile payments. In fact, sometimes back Sanford Bernstein analysts suggested that the iPhone maker could pose a real challenge to eBay Inc’s (NASDAQ:EBAY) subsidiary PayPal.
Apple’s rumoured mobile Payment System
The rumours surrounding the possible launch of a payment system together with the new iPhone is based on a number of clues. They include:
Printed Circuit Board (PCB)
Experts have examined the leaked photos of the iPhone 6 PCB and have agreed that Near Field Communication Chip (NFC) is going to be used in iPhone 6. It is possible that the chip may also be used in the iWatch. NFC is combined with a host of other features including a larger RAM and a faster Wi-Fi component. These traits are in line with a combination of patents associated with structures needed for a secure mobile payment ecosystem.
Apple recent Partnership deals
Bloomberg reported that Visa (NYSE:V), MasterCard (NYSE:MA) and American Express (NYSE:AXP) have entered an agreement with Apple an iPhone wallet deal that will be unveiled on September 9th.
What Mobile Payments means for Apple
While Google Inc’s (NASDAQ: GOOGL, GOOG) android has dominated the Smartphone market, the iPhone still commands the lead in the U.S. market. If Apple is introducing mobile payment service as expected, it is going to sweep the U.S. market by storm. This is according to Creative Strategies LLC’s analyst Ben Bajarin. He was responding to Bloomberg about Apple’s rumoured venture.
There are other players who have tried to introduce mobile payment system, though none has really seen the light. However, Apple is known for its ingenuity and I’m certain that if its mobile wallet will take off, setting grounds for more players to join.
Apple has about 800 million global iTunes accounts, and it banks on this if indeed it is going to create its own payment ecosystem. PayPal has just over 152 million registered accounts but processed $180 billion worth of payments in 2013 generating $6.6 billion in revenues. If Apple will be turn a good number of its iTunes account holders to the ecosystem’s customers, the system is likely to pick up quickly. While this will not be easy, its rumoured partnerships with plastic card companies will help it in this quest.
Conclusion
It seems Apple has heeded to the mounting pressure on it to monetize its data by venturing into the payment market. In the past few weeks, there has been piling clues that September 9 may see iPhone users get a new payment ecosystem. Though it is not clear how exactly the iPhone maker is planning to do this, investing in mobile payment could be a real game changer.
