“Apple’s announced mobile payment-technology strategy is consistent with our research, while the breadth of partnerships and focus on online and in-app e-commerce transactions surpassed our expectations,” Pacific Crest Securities’ analysts Josh Beck, Chad Bartley, and Evan Wilson write for Barron’s. “Positive for Visa, MasterCard, American Express, and Google. Negative for eBay. Mixed for Gemalto.”
“Apple Pay set[s] the stage for a major breakthrough in mobile payments,” Beck, Bartley, and Wilson write. “Apple has partnered with all of the major networks (Visa, MasterCard, American Express), eight of the top eight credit issuers, and over 200,000 merchants.”
“Visa announced a new innovative token service launch as well as CyberSource and Authorize.net integration today, which also reinforces our view that the company is well positioned to play a critical role in fostering mobile payments with Apple and potentially others like Google,” Beck, Bartley, and Wilson write. “Apple’s ambition in e-commerce (desktop and mobile apps) is greater than we had anticipated and represents increasing competition for PayPal. New token services and a more aggressive issuer and merchant stance in mobile payments could also benefit Google over time if it adds new token services to improve its security scheme.”
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MacDailyNews Take: The market has yet to fully grasp the magnitude of Apple Pay.
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