“Apple Inc., which has more than 400 million credit cards on file with its iTunes Store, is exploring an expansion of the mobile-payments system, said a person with knowledge of the matter,” Adam Satariano reports for Bloomberg.
“The initiative is being led by Eddy Cue, chief of the iTunes and App Store and online services, and he has tapped executive Jennifer Bailey for the effort, said the person, who asked not to be identified because the information isn’t public,” Satariano reports. “The timing of the payments effort isn’t clear, said the person.”
“The move would expand Apple’s reach into a competitive online payments field and potentially give it a new revenue source,” Satariano reports. “The credit-card numbers on file through iTunes could also be leveraged for a system in which an iPhone could be used as a new digital credit card, analysts have said.”
Read more in the full article here.
MacDailyNews Note: Apple publicly stated 500 million credit card accounts on file via iTunes Store back in June. Using estimated growth rates, Apple most likely has over 600 million credit cards on file currently, not 450 million.
Related articles:
Analyst: Apple to reach 600 million users with credit card accounts on file by year end – June 4, 2013
Apple patent application reveals secure iWallet system with iBeacon – January 16, 2014
Apple’s revolutionary iWallet is coming – December 10, 2013
Apple could have 250 million iBeacon-capable units in the wild by 2014 – December 7, 2013
Apple turns on iBeacon to guide shoppers at 254 U.S. retail stores – December 6, 2013
One is mine.
Given Apple’s #1 rating for security amongst mega online sellers, at least Apple is aware of, leading the field and actively involved in analyzing and upgrading what they have while expanding their capability.
I have great confidence Apple will greatly limit any incursion that does happen and stop it shorter than other retailers who obviously only know after 40 or 70 million records are transfered out/stolen.
I have little use for such a app given the fact I pay using cash 99% of the time when I’m out shopping, dining, et cetera. Still. I suspect an iWallet type app will have major appeal for a lot of people.
Same here.
I never pay cash if I can help it. But then I pay by secure, pin protected, bank card.
Prediction: Walmart and Apple will join forces to compete against Amazon.
Apple has the devices for online shopping, and Walmart has the products, warehouses and a potential delivery infrastructure. The key is to integrate the payments systems.
You heard it here first.
I suspect it won’t be just Wallmart. Target would also seem a good candidate. With Costco it might be tricky, given their deals with Amex (and their business model, but any store that ships to customers (and is therefore directly competing with Amazon) will have incentive to jump on board.
Target = persona non grata.
Interesting idea. Although I suspect your handle tips your hand as to your thought processes.
As soon as they do Amazon will squeak and DOJ will accuse Apple of conspiracy to raise prices in the payments system regardless of the evidence.