Analyst: Apple could disrupt mobile payment industry with ‘PayPal on steroids’

Apple Online Store“Apple could cause some serious disruption in the mobile payments market if it enters that arena as reported, say analysts,” Jaikumar Vijayan reports for Computerworld.

“Reports noted earlier this week that Apple is planning to embed Near-Field Communications (NFC) technology into its next-generation iPhones and iPads,” Vijayan reports. “If the products were NFC-enabled, users would be able to pay for purchases just by waving their iPads or iPhones near retailers’ payment terminals.”

“Similar contactless payment technologies have been around for years, but they’ve only received a lukewarm reception, at best, from consumers,” Vijayan reports. “What’s likely to make Apple’s offering vastly different, however, is the company’s huge base of 160 million iTunes users, said Avivah Litan an analyst at Gartner.”

Vijayan reports, “That base gives Apple the ability to operate largely as a ‘closed payment system’ with minimal need to interface with credit card companies and banks, she said. ‘They can largely shut out credit card companies if they choose to,’ and operate in much the same way that PayPal has done in the virtual world, she said… ‘I see Apple as being a PayPal on steroids,’ Litan said.”

Read more in the full article here.

[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]

26 Comments

  1. Something doesn’t make sense here. When I buy/rent something via iTunes, I pay for it with (wait for it…)

    my credit card!

    Yes, iTunes has my credit card on file. It’s the only way of which I know to purchase ANYTHING thru iTunes.

    So, what’s up with the lack of logical thought processes in these NFC in iPhone/iPad speculations?

    MW: reaction, as in “my knee-jerk reaction”

  2. @Kevin J. Weise:

    You just move your money from the card to Apple’s virtual bank and spend it from there, </b>not taking the card itself with you.</b>

    NFC allows much faster and easier way to buy things and whatever happens is immediately transparent.

  3. Ebay just put down some collateral and poof! PayPal is a bank now!

    That means that the iBank can set its own terms in accepting the cards, as the major banks exchange each others debits in a clearinghouse and don’t charge each other fees.

  4. I run a small business and I know that the credit card companies soak us. On average, @2.5% of all my transactions goes to them in fees. Hell, they make more money on the transaction than I sometimes do on my sales. Something is wrong with that!!!!

    Go Apple, take on the banks and credit thieves.

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