Saturday, 25 January 2014

Apple might be preparing a Paypal and Square alternative


Good news folks, if you are me who just don't want to trust the services of Paypal, The Wall Street Journal is reporting tonight that Apple is looking to develop a new mobile payment service. WSJ reports that SVP of Internet and Services Eddy Cue has met with other companies regarding Apple’s plans to use its iOS devices to handle payments.

With millions of active iTunes accounts, Apple has one of the largest credit card banks in existence. We call it the "iBank" And pundits have been saying for years that the company could take advantage of it's mega user base by coming up with some sort of mobile payment system…

The Journal’s Douglas Macmillan and Daisuke Wakabayashi have the scoop:

“Eddy Cue, Apple’s iTunes and App Store chief and a key lieutenant of Chief ExecutiveTim Cook, has met with industry executives to discuss Apple’s interest in handling payments for physical goods and services on its devices, according to people familiar with the situation.

In another sign of the company’s interest, Apple moved Jennifer Bailey, a longtime executive who was running its online stores, into a new role to build a payment business within the technology giant, three people with knowledge of the move said.

Those people said Apple also spoke to at least five other well-known executives in the payment industry about the position before tapping Ms. Bailey.”

Apple has been tinkering around with mobile payment tech in its own retail stores for a while now. If you've heard of iBeacons, you'd probably know what I'm talking about. A Google search will tell you more about iBeacons

In 2012, The tec giant took what we believe to be its first step into the mobile payment space with the introduction of Passbook in iOS 6. As it stands now, the app can still only hold digital copies of transportation and event tickets, and loyalty cards, but there’s certainly some potential there.

Apple certainly has the resources, and a lot of the necessary pieces in place, to launch a mobile payment service, it just needs to get everyone on board. There’s a reason why no one in the space—Isis, Google Wallet, payWave, etc.—has been able to pull ahead. Size.

So if iBank comes out, Paypal, Square and many others might see a decline in their users.

Let us know what you think about the so called "iBank" in the comment section down below.

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