Apple partners with MasterCard, Visa and American express to create iPhone Wallet

Published By : 02 Sep 2014 | Published By : QYRESEARCH

The new Apple iPhone that will be unveiled on September 9 will feature a near-field communication ship (NFC) that will serve as a mobile wallet. Apple Inc. has been in talks with MasterCard Inc., American Express Co., and Visa Inc. to enable iPhone users to use their smartphones to pay for purchase of goods.

While retailers are still hesitant regarding the technology, Apple has already struck deals with big payment networks as well as banks. Keeping in mind iPhone’s popularity, success and market share, retailers are sure to come around.

The NFC chip, together with a fingerprint recognition called Touch ID will ensure the consumers’ transactions are secure. The move to venture into mobile wallet arena is an attempt by Apple to retain its customers and keep them engaged and loyal. In addition, the smartphone giant intends on generating more revenue. Crone Consulting LLC, an advisory to retailers and banks, has estimated that Apple Inc. could make $300 a year per user as advertising revenue. Apple hopes that its 800 million global iTunes accounts will generate more returns.

Up until now, mobile payment was used by Apple customers only to purchase online apps, goods in-store, and entertainment. There have been only a handful of companies who have attempted to integrate mobile payment into their businesses and these include Facebook, Google, Paypal, and Amazon. However, despite the investments and hype surrounding the technology, mobile payment hasn’t really taken off. Major issues that restrict its success are security of transactions and companies needing to claim their share of the value chain.
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