iWallet: Apple teaming up with Amex, Visa, MasterCard on iPhone payments

“Apple Inc. plans to turn its next iPhone into a mobile wallet through a partnership with major payment networks, banks and retailers, according a person familiar with the situation,” Matt Townsend reports for Bloomberg. “he agreement includes Visa Inc., MasterCard Inc. and American Express Co. and will be unveiled on Sept. 9 along with the next iPhone, said the person, who asked not to be identified because the talks are private.”

“The new iPhone will make mobile payment easier by including a near-field communication chip for the first time, the person said. That advancement along with Touch ID, a fingerprint recognition reader that debuted on the most recent iPhone, will allow consumers to securely pay for items in a store with the touch of a finger,” Townsend reports. “Apple’s move is also about generating more revenue from the roughly 800 million global iTunes accounts, which include payment information, that have already been created, said Richard Crone, chief executive officer of Crone Consulting LLC, which advises retailers and banks on mobile-payment solutions.”

“Until now, iTunes accounts have been used in Apple’s marketplace, which is tiny compared to the vast retail market, Crone said. If Apple’s mobile wallet takes off, it could open up new possibilities as a marketing platform by generating advertising revenue from consumer brands wanting to reach shoppers while in a store,” Townsend reports. “Crone’s firm estimates that a frequently used mobile wallet application could generate about $300 a year per user from advertising.”

Read more in the full article here.

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Apple may soon deliver the watershed moment for mobile payments – August 29, 2014
Apple working with NXP to bring pay-by-touch NFC technology in new iPhone – August 29, 2014
Apple’s ‘iPhone 6′ will include NFC mobile payments, sources say – August 28, 2014
More evidence of NFC support for both iPhone 6 models – August 27, 2014
Schematic suggests NFC chip in ‘iPhone 6,’ amount of RAM remains unknown – August 18, 2014
Apple’s iPhone 6 line will sport new A8 chip, faster Wi-Fi, improved Touch ID, and NFC – August 6, 2014
NFC, wireless charging, improved LTE rumored for Apple’s ‘iPhone 6′ – June 9, 2014
Apple patent reveals new iPhone antenna that adds NFC – May 22, 2014

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21 Comments

    1. This is precisely why many people won’t use the service. Remember when Apple cared about delighting the user? Ads are the exact opposite of delight. Keep that annoying crap off our phones!!!

      1. It seems inevitable to me that a large percentage of people will eventually use a mobile payment system, Mike. The only question is “which one?”

        Mobile payments will eventually become a core part of our economic system, and every aspect of our existing economic system includes advertising – TV, radio, newspapers, magazines, email, and even cash register receipts. A mobile payment system *will* involve advertising because there is money to be made in doing so.

        The question is, what kind of advertising? Will it be intrusive and highly irritating, disseminating your data to anyone and everyone willing to spend a few bucks? Or will there be some reasonable boundaries on the collection and dissemination of your data? Will you have some say in what data is collected, when and for what purposes?

        Any company whose business plan revolves around advertising and selling personal data, such as Google, will tend to be very intrusive and irritating. On the other hand, Apple’s core business is mobile computing systems – hardware and software – not advertising. To date, Apple has shown restraint in collecting, parsing, and selling user data and has gone to some lengths to promote iOS user privacy. While I am not fond of my data being readily accessible to anyone, I am far more comfortable with Apple’s approach on user data than with the approaches of Apple’s primary competitors – Google, Microsoft, Samsung, and Amazon.

        1. There’s a difference. MDN owns this website. I have no choice but to deal with ads if I want to come here. On the other hand, I own my phone so I don’t have to tolerate Apple’s bullshit.

          People like you are the reason I seldom frequent this website anymore. All you smart-asses with your digital courage are the reason internet forums are turning into the cesspools they’re becoming.

          1. Putting your discussion ending personal attack aside (momentarily), your decision to boycott a rumored mobile payment system because of its rumored advertisements, while simultaneously putting real life advertisements on your phone or computer in real life for this website – that makes your views advertising a bit too nuanced / full of bullshit for to be appreciated. In other news, go fuck yourself and fuck your mother’s asshole bloody, you dumbass troll.

  1. Haven’t credit card companies been doing this for years? Everything that is purchased on a card is parsed and analysed. This information is then sold and the users are marketed products. For example, let’s say a user purchases a lot of fishing equipment. They then would receive direct mail advertising on camping and boating gear. There might be laws that prevent this currently, but I know this marketing practice was common place at least 15 years ago.

    So, fast forward to today and I imagine camping and boating gear equipment ads will replace random game ads within free apps, iTunes Radio, etc. There might be a backlash if emails, text messages and notifications are constantly spammed. The only spam I currently receive are emails about Apple product sales and app reminders, which is OK with me. A daily/hourly email or notification regarding a andom product would upset me, unless they give an opt-in and send a credit for $300.

  2. This is an excellent chance to fulfill Steve Jobs wish of going thermonuclear on Google and Android. It didn’t work out for Apple in the court system, but Apple is going to have a hell of a lot of new iPhones with NFC and Touch ID running the latest OS that will be ready to process mobile payments. I’m sure all of Apple’s retail stores will be ready to handle NFC transactions and that way Apple customers can get comfortable with mobile payments. Maybe Apple can convince its payments partners to push local stores to get whatever terminals are necessary to process NFC transactions. I feel very hopeful about the possibilities. I sure hope these iPhone NFC rumors are true. An added bonus would be for Apple’s wearable device to also handle NFC transactions.

      1. Two words: Touch. ID.

        I suspect that Apple has carefully taken its time thinking about this. There are a lot of very smart people in Cupertino, and they in turn are working with the major credit card clearinghouses, banks, retailers, fraud detection software companies and other specialists in data security. Touch ID took years to develop, and Apple limited its use to the iPhone so far to make sure that the firmware and related software in iOS are properly sandboxed. Apple surely knows what is at stake, and is way ahead of us when it comes to the promise and potential pitfalls of NFC.

        While NFC (and RFID, Bluetooth and even WiFi for that matter) have potential vulnerabilities, I think we will see that Apple has baked in verification, hashing, encryption, physical sandboxing and two-factor authentication to protect transactions, and protect the iPhone and other devices from being remotely hacked. It’s a good example of why Apple is not always first to market with a new technology. Certain other competitors (insert brand here) rushed NFC to market, but did so likely knowing that huge vulnerabilities existed, and didn’t care.

        I’m not saying that anything is invulnerable. Criminals are as resourceful as they are evil. I do have confidence however that Apple and its partners are well aware of the potential threats, and have taken real pains to protect consumers.

        It’s a topic that I suspect will be discussed heavily on September 9. Apple and its partners are cutting a new trail, and the key is winning consumer confidence to adopt using their iPhone instead of pulling out their credit cards. Apple has built much of its success in changing the behavior of consumer habits. That hinges on winning our confidence that using our iPhones and other iDevices is safe. My hunch is that our fears and doubts will change. Getting consumers to adopt this way of transacting and paying will succeed or fail on this point alone. And I think we’ll see that Apple will succeed where others have not.

      2. There was a feature on a news programme on the BBC here in the UK this evening, showing how restaurants and the like are obtaining Chip-and-pin card readers, which are supposed to be secure, and which are bogus devices made to scan the card details, show a ‘transaction cancelled’ on the receipt, and which send all the card details to web sites allowing funds to be siphoned off. NFC with Touch ID would avoid this sort of card skimming taking place.

    1. I am fortunate to live in Salt Lake City which was one of the two test cities for the ISIS mobile payment platform before it went nationwide. As a result, there are NFC terminals all over the city (grocery stores, many retailers, etc.), funded in part by the ISIS partners. If Apple does this, it seems like it will be an easy transition to that platform for me. Yay!

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