Payments

Would Apple become a Payment “POWER HOUSE” after tomorrow?

Candela LabsSr. Marketing Manager (Digital Marketing & Branding)

Apple has sent out official invites for the launch of the new iPhone on 10th September, 2013 at it Cupertino Headquarters. The tag line of the invite  is pretty interesting as it reads ‘This Should Brighten Everyone’s Day.’

I remember getting a newsletter in which I read that “Apple had 435 Mn registered iTunes accounts, complete with credit card details" does that make it the largest payment system in the world?

As of today, Apple has over 500 Mn user’s card details stored in its database. Since its founding, users on iTunes store have downloaded over 25 billion songs and 40 billion apps. According to IFPI (International Federation of the Phonographic Industry), in 2012 revenue recorded through the iTunes store was $16.5 Bn. This makes me think how will Apple capitalize on this potential that it has in the payments industry?

On Ad Age digital, Tim Dunn also points out to the importance of Apple in the mobile payment space. Tim writes“ Ironically, Apple has a crucial advantage in mobile payment. With hundreds of thousands of credit cards already stored in iTunes, it should be relatively simple to find a seamless way to move the same payment credentials into a mobile wallet.”

On Quora, I was reading up an interesting post by Brian Roemelle on Apple’s intent to launch the new iPhone with patented features like integrating NFC circuitry built into the fingerprint scanner. He also calls this move as a ‘Genius Move’ because such integration will allow Apple to combine iCloud, NFC, iBeacons, Bluetooth BLE, and fingerprint scanner for more than just payments. He also refers to the gray circles in the Apple’s invite and he links those to the new feature which will be embedded in the home button of the new iPhone. You can see the image of the invite below.

apple-invite-for-iphone-5s-launchBack in 2012, when Apple acquired AuthenTec the speculations of Apple introducing a fingerprint scanning option have always been there. In reality, we haven’t seen such introduction from Apple yet. If this happens tomorrow then we may be witnessing a new revolution in the Mobile Payments world. Apple has already launched Passbook and integrating NFC and Biometrics feature in iPhone would complete the circle of payments made through an iPhone.  Glowing Ring - Apple iPhone

It is beyond doubt that Apple, iPhone and iPads can bring a paradigm shift to any industry they touch. Example when Apple decided not to put NFC on iPhone 5, Analyst had to go back and revise their NFC shipment projections.

Image Sources: Forbes

LTP View: There are speculations in the market that iPhone will launch the “Glowing Ring of Fingerprint Security” (NFC + Fingerprint Scanner) with the latest version of iPhone tomorrow. But these are still speculations and may or may not be true. If it does happen and eventually Apple plans to combine Apple’s Passbook, NFC payments, finger print scanner to prevent fraud, integrate 3rd party mobile payment apps, we may be looking at Apple as the next “POWER HOUSE” of payments. Another industry it might change (think music, gaming, photography, and telecom).

Vaseem Khan

Candela LabsSr. Marketing Manager (Digital Marketing & Branding)

Vaseem Khan is a founding member and a primary author at MEDICI. He is a Payments enthusiast and an avid reader. He loves being involved on initiatives related to Technology, Startups & Payments. He has been associated with companies like Gallup as a Management Consultant and Oracle as an Account Manager.

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