Pacific Crest: Apple, Visa to accelerate e-payments where Google failed

“Pacific Crest analysts Josh Beck, Andy Hargreaves, John Vinh, Chad Bartley and Evan Wilson today issued a longish group report of 27 pages in which they declare that ‘we think a partnership between Apple and Visa would make strategic sense and believe an announcement could happen as early as this fall,'” Tiernan Ray reports for Barron’s.

“The report presumes the next model of the iPhone, an ‘iPhone 6,’ will have contactless payments technology in it,” Ray reports. “As the authors see it, past efforts to use mobile devices at point of sale were cumbersome, and Visa has introduced ways to make it easier: ‘Security has played a key role in the formation of mobile payment initiatives and in the past has introduced complex business models that have been unable to scale quickly. ISIS used a physical secure element and a carrier SIM rental model. Google has moved toward a host-card emulation to reduce business-model friction. PayPal has relied on distribution partnerships with terminal providers and networks… New security models could lower adoption hurdles for mobile payments at physical retailers and expand the Visa platform, enabling new commerce opportunities for technology giants, merchants and issuers.'”

Read more in the full article here.

Related articles:
U.S. consumers’ digital wallet awareness approaching 80 percent despite low consumer adoption – August 4, 2014
Apple patent application reveals new security control features for future iWallet – July 31, 2014
Apple’s ‘iWallet’ could debut as soon as this fall – July 23, 2014
Bypassing the credit card: Apple patent application reveals major financial system beyond iWallet – January 30, 2014
PayPal wants to partner with Apple in mobile payments, sources say – January 30, 2014
iWallet: Apple exploring expansion of mobile payments, sources say – January 25, 2014
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
Analyst: Apple to reach 600 million users with credit card accounts on file by year end – June 4, 2013


  1. Key words in the article: “We think….” and “…would…”

    Translation: pure speculation arrived at by anatomic extraction.

    Articles like this suggest that something IS happening, but provide now facts to support that assertion. That’s not to say this could not happen, and given that Visa is one of the three big players in credit card processing, there COULD be credence to the assumptions. But without facts, the article is little more than wishful thinking.

    Is it too much for the media to do more than fan the flames of rumor and speculation? There was once a time when a strict editor would have shoved an article like this down the reporter’s throat. Those days are long gone.

  2. “But Beck doesn’t expect mobile payments to be a big moneymaker for Apple.”

    I don’t believe Apple wouldn’t make a deal of this magnitude with a company like Visa without securing a sizable return for the company.

    You can bank on Apple brining a lot more than this writer sees to the table, continuously over time, in technology, software, global market reach and its crucial loyal Apple customers than Visa, a one trick pony possibly can (despite its recent purchases) , to make Visa want this partnership. Apple’s contribution to this partnership is huge and beholds huge future potential.

    A new revenue stream, it will generate a lucrative return and be a huge moneymaker for Apple.

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