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Apple Payment Ecosystem on the Horizon

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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.

Google Play add PayPal and Expands Services

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Google Play Introduces PayPal and Expand Carrier billing & Gift Card Coverage

Google Play, Apps Store, Google Android, Android Apps

Google Android

On Thursday last week Google Inc (NASDAQ:GOOG), through its Google Play Product Manager, announced that they have added PayPal to its payment options. This is good news for Android users as PayPal is widely used globally, and this will make it easier for them to buy their desired apps. Among those who should also celebrate this move are app developers, as their customers can now utilize the frictionless payment system.

While explaining the move, the manager, IbrahimElbouchikhi, explained that the move is in line with Google’s objective of making apps accessible through easier and convenient payment system across the world. He also posted that career billing and app store gifts cards have been extended to more countries.

Smartphone Market Growth Driver

If there is one reason why the Smartphone market has experienced such a massive growth in the past few years, then it is the existence of apps.  Apps have helped mobile phone users to do virtually everything that they can do on their PCs or Laptops on their Smartphones.

App developers have ripped big from this opportunity, but this has only been possible because of the existence of a well structured payment system. Integration of PayPal in Google Play apps store comes as a big boost and will come in handy for both developers and app users.

About Paypal Integration

Google Play customers will be able to pay for apps using PayPal option. The option is available in the Google wallet. So if you want to buy an app from the apps store, all you need to do is enter your PayPal login details and proceed to initiate the purchase.

The process is painless and very convenient to work with. The only issue with the Paypal option is that Google has only availed it in 12 countries, some of which include the U.S., Canada and Germany.

Expanded Coverage of Carrier billing & Google Play gift Cards

Google Play’s Carrier Billing now covers 24 more countries, up from the previous seven. The countries that are now supported include Singapore, Taiwan and Thailand. According to the internet giant, this option is now available to approximately half of the population of Google Play users.

Carrier Billing is a payment option that allows a Google Play user to charge purchases directly to his/her phone bill.

In addition to PayPal integration and expanded Carrier Billing coverage, the company has also made the apps store’s gift cards available to now 13 countries. The new countries where Google Play Gift Cards can now be used include Japan and Germany.

Expanded Support for Local Developers

Developers from 13 new countries can use the Google Play apps store to sell their apps. Some of the added countries include Turkey, Indonesia and Malaysia. Now there are a total of 45 countries where Google support local developers.  What’s more, the store now supports up to 28 currencies and it process and reconciles all the currencies such that developers can receive their money in their preferred currency.

Conclusion

Google’s Android has put up a great fight against Apple Inc.’s (Nasdaq:AAPL) iOS. As we speak, Android users outnumber their iOS counterparts and more downloads take place in Google Play than in Apple’s iTunes. Over the past one year, the number of apps in Google Play has tripled, thanks to the increasing number of developers on the Android platform.

With PayPal integration and expansion of other Google Play services, the numbers are expected to swell further as more apps developers and Android users realise how convenient and easy it is to sell or buy apps from the apps store.