August 6, 2014
On Aug. 5, 2014, Pacific Crest Securities said in a research note that Visa and Apple could announce a mobile payment partnership in the near future. This would have a negative impact on PayPal, Crest stated. The Apple iPhone 6 is expected to be launched in September or October this year.
After analyzing the payments, handset, enabling technology and Internet landscape, we think a partnership between Apple and Visa would make strategic sense and believe an announcement could happen as early as this fall,' stated Pacific Crest’s note.
'We expect the iPhone 6 to be launched with near-field communications (NFC) and secure element technologies, which would provide Apple with a broad technology portfolio to disrupt mobile payments,' wrote Josh Beck, an analyst at Pacific Crest Securities.
Visa’s recent security initiatives, especially its new token service, could make mobile payment security a lot simpler.
The deal could reduce business obstacles and tap into Apple’s rich customer base and its wealthy credit-card stash.
Apple mobile payments could be Passbook on steroids, Beck told MarketWatch. Apple could use its large stockpile of iTunes accounts and cards on file (about 800 million), along with Passbook and a new token partnership with Visa, to provide a highly scalable payments platform. It makes sense for Apple to have a partner for the back end. And it makes sense for Visa to partner with a device vendor so deeply entrenched with consumers.