“Apple Inc. plans to introduce services that would let customers use its iPhone and iPad computer to make purchases, said Richard Doherty, director of consulting firm Envisioneering Group,” Olga Kharif reports for Bloomberg.
“The services are based on “Near-Field Communication,” a technology that can beam and receive information at a distance of up to 4 inches, due to be embedded in the next iteration of the iPhone for AT&T Inc. and the iPad 2, Doherty said,” Kharif reports. “Both products are likely to be introduced this year, he said, citing engineers who are working on hardware for the Apple project.”
“The main goal for Apple would be to get a piece of the $6.2 trillion Americans spend each year on goods and services, said Richard Crone, who leads financial industry adviser Crone Consulting LLC,” Kharif reports. “Today, the company pays credit-card processing fees on every purchase from iTunes. By encouraging consumers to use cheaper methods — such as tapping their bank accounts directly, which is how many purchases are made via PayPal — Apple could cut its own costs and those of retailers selling Apple products.”
Kharif reports, “Ed McLaughlin, chief emerging payments officer at MasterCard, said the company is ‘running the world’s fastest payment network, and that doesn’t need to be re-created.'”
MacDailyNews Take: Yeah, okey-dokey, Mr. Defensive.
Kharif continues, “Apple, based in Cupertino, California, is considering starting a mobile payment service as early as mid-2011, Doherty said. It would revamp iTunes, a service that lets consumers buy digital movies and music, so it would hold not only users’ credit-card account information but also loyalty credits and points, Doherty said. Using the service, customers could walk into a store or restaurant and make payments straight from an iPad or iPhone.”
MacDailyNews Take: Time for an eerie break:
This device, able to be made today with current technology, would easily be “The Device.” Running Mac OS X or a mobile variant, it would allow the user to communicate via text, audio, and video. It would snap digital photos and organize them, do email, and browse the web. It would sync automatically with your desktop or portable Mac… It would absorb the iPod by playing AAC / MP3 audio and interface with iTunes, but it would also play feature-length MPEG-4 movies, too, in full color… and any number of websites in your pocket. McDonald’s Drive Thru’s would accept payments via Bluetooth from “The Device.” – SteveJack, MacDailyNews, December 10, 2002
Kharif continues, “Apple also could use NFC to improve how it delivers mobile ads to customers’ handsets and charge higher fees for those ads, Crone said. NFC would let Apple’s iAd advertising network personalize ads to the places where a customer is spending money. That could double or triple the ad rates that Apple charges, Crone said.”
“Apple has created a prototype of a payment terminal that small businesses, such as hairdressers and mom-and-pop stores, could use to scan NFC-enabled iPhones and iPads, Doherty said,” Kharif reports. “The company is considering heavily subsidizing the terminal, or even giving it away to retailers, to encourage fast, nationwide adoption of NFC technology and rev up sales of NFC-enabled iPhones and iPads, he said.”
Read more in the full article here.