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Passbook "key" in iOS 6, but Apple won't detail its future strategy

post #1 of 22
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When asked whether Apple's new Passbook app for iOS 6 hints at the company's larger strategy for deploying a digital wallet infrastructure, chief executive Tim Cook described the new app as "a very key feature" but said he "wouldn't want to comment specifically on that point."

"Passbook is a very key feature in iOS 6," Cook added. "I think all of us have found that we were getting many passes and many tickets, maybe boarding passes, that were getting scattered all over our iPhones in different apps. And so Passbook does an incredible job of pulling all of those to one place.

"Whether it's or passes or tickets or whatever it may be, it's an important feature of iOS 6, and I wouldn't want to speculate about where it might take us."

Passbook in iOS 6

Apple has provided a preview of the new Passbook app in iOS 6, describing it as "your boarding passes, movie tickets, retail coupons, loyalty cards, and more are now all in one place."



The company's promotional page for iOS 6 states, "with Passbook, you can scan your iPhone or iPod touch to check in for a flight, get into a movie, and redeem a coupon. You can also see when your coupons expire, where your concert seats are, and the balance left on that all-important coffee bar card. Wake your iPhone or iPod touch, and passes appear on your Lock screen at the appropriate time and place — like when you reach the airport or walk into the store to redeem your gift card or coupon. And if your gate changes after you?ve checked in for your flight, Passbook will even alert you to make sure you?re not relaxing in the wrong terminal."



Passbook is an extension of time and location based reminders, along with a secure credentialing document mechanism. Third parties can generate digital Passbook receipts that the app then stores, which work as an electronic version of the tickets, passes loyalty cards and gift certificates they currently carry in their wallet.

The advantage to having these on your iPhone: they can pop up based on your location, provide reminder notifications and updates, and be canceled and refunded if the device is lost. A variety of third party apps already display electronic passes; Apple is just creating a central repository for them.

First step toward a digital wallet

After Apple announced the new app, Forrester Research analyst Charles Golvin stated, "Clearly, this is the first step in Apple providing a digital wallet."

A year ago, Google scrambled to deploy its own digital wallet strategy branded Google Wallet. That effort was oriented around near-field communications (NFC), which requires phones to incorporate an NFC chip that vendors can digitally read to process standard retail transactions or that users can tap to make purchases from vending machines.

The infrastructure that Google pushed out to make NFC purchases possible from new Android phones running the latest version of its software has largely sat idle however, as customers failed to see the value of that approach.

Similar systems have proven to be very popular in other areas, particularly in Japan, but none of the companies attempting to replace credit card swiping with mobile phone tapping in the US have gained much traction among consumers.

By delivering real functionality for iOS 6 users in the new Passbook app, Apple could pave the way for a broad expansion of ticket sales, electronic gift card purchasing, and other related services through iTunes. Apple already has over 400 million active users in iTunes with credit cards on file.
post #2 of 22

"digital wallet"........ Shoot, my wife gave me that as a nickname 10 years ago when I started to do electronic transfers to her account from my bank account. lol.gif

post #3 of 22

NFC on next iPhone? Check.

post #4 of 22
Quote:
Originally Posted by blackbook View Post

NFC on next iPhone? Check.

When I first saw Passbook during WWDC the first thing I thought of was a stepping stone to an NFC-capable iPhone with proper backend support for the service. I'm glad I'm not the only one who saw it that way.

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post #5 of 22
Quote:
Originally Posted by EyeNsteinNo View Post

"digital wallet"........ Shoot, my wife gave me that as a nickname 10 years ago when I started to do electronic transfers to her account from my bank account. lol.gif

You should have just keep the money yourself. If a woman needs cash she ought to go out an earn it herself.
post #6 of 22

Another very key issue regarding passbook is that how much Apple is going to take as service charge. I guess that it would not be 30%, but there must be something there. This may be interesting charge if it is not consistent with all app or book charges.

post #7 of 22
Quote:
Originally Posted by blackbook View Post

NFC on next iPhone? Check.

 

As I understand it NFC has multiple versions and until that is settled I don't really see Apple jumping in. Particularly since Apple being a US company is very US focused and there's little to no widespread NFC support.

 

So it likely won't be the next as in the 2012 iPhone but perhaps the 2013. 

A non tech's thoughts on Apple stuff 

(She's family so I'm a little biased)

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A non tech's thoughts on Apple stuff 

(She's family so I'm a little biased)

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post #8 of 22
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Originally Posted by chudq View Post

Another very key issue regarding passbook is that how much Apple is going to take as service charge. I guess that it would not be 30%, but there must be something there. This may be interesting charge if it is not consistent with all app or book charges.

 

The money isn't going through Apple so it would be none. 

A non tech's thoughts on Apple stuff 

(She's family so I'm a little biased)

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A non tech's thoughts on Apple stuff 

(She's family so I'm a little biased)

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post #9 of 22
Quote:
Originally Posted by charlituna View Post

As I understand it NFC has multiple versions and until that is settled I don't really see Apple jumping in. Particularly since Apple being a US company is very US focused and there's little to no widespread NFC support.

So it likely won't be the next as in the 2012 iPhone but perhaps the 2013. 

It is complex, but considerably less so than cellular tech. There are a couple ISO standard air interfaces but I don't think that's a hurdle for Apple to support. There is also Japan's FeliCa which is really precursor to modern NFC but well above standard RFID, but I don't think that is a major hurdle to support either. I think the biggest issue has been getting the HW and SW to work together and then getting an intermediary service to talk to deal with the devices and the financial institutions. The former is right in Apple's wheelhouse and the latter, while being the most challenging IMO, seems to be best handled by a company like Apple who has about a half-billion CCs already on file.

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"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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post #10 of 22
Quote:
Originally Posted by EyeNsteinNo View Post

"digital wallet"........ Shoot, my wife gave me that as a nickname 10 years ago when I started to do electronic transfers to her account from my bank account. lol.gif

I was working as a volunteer at a baseball field concession stand and a little boy came up to the counter. I asked him if I could help him and he said he was "waiting for his money to arrive"... about then I could see his grandmother huffing and puffing to catch up with him. 

 

This kid might grow up to not know what cash is... either because it will become outdated, or he will never find employment.

"That (the) world is moving so quickly that iOS is already amongst the older mobile operating systems in active development today." — The Verge
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"That (the) world is moving so quickly that iOS is already amongst the older mobile operating systems in active development today." — The Verge
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post #11 of 22
Quote:
Originally Posted by charlituna View Post

 

As I understand it NFC has multiple versions and until that is settled I don't really see Apple jumping in. Particularly since Apple being a US company is very US focused and there's little to no widespread NFC support.

 

So it likely won't be the next as in the 2012 iPhone but perhaps the 2013. 

I agree, 2012 is maybe a bit too soon to see NFC inclusion. But then Apple iPhones do stay on the market for a number of years so having the HW ready for the software should happen sooner then needed.

 

I'd think a slot to take credit card payment would be a nice built-in addition rather then a third-party dongle as it is now. At least Apple would be able to take a cut of the action if this were to be included... It would be nice to know Jobs is not restless in his grave knowing that there is a dime someone else is making with the iDevices and Apple isn't getting a share.

"That (the) world is moving so quickly that iOS is already amongst the older mobile operating systems in active development today." — The Verge
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"That (the) world is moving so quickly that iOS is already amongst the older mobile operating systems in active development today." — The Verge
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post #12 of 22
Quote:
Originally Posted by Macky the Macky View Post

I agree, 2012 is maybe a bit too soon to see NFC inclusion. But then Apple iPhones do stay on the market for a number of years so having the HW ready for the software should happen sooner then needed.

 

I'd think a slot to take credit card payment would be a nice built-in addition rather then a third-party dongle as it is now. At least Apple would be able to take a cut of the action if this were to be included... It would be nice to know Jobs is not restless in his grave knowing that there is a dime someone else is making with the iDevices and Apple isn't getting a share.

 

It's already almost a payment system.  The Passbook is a way for outside services to interact with you as an identity tied to your mobile device, in a presumably secure way.  The key part of that being the identity part.  

 

The NFC chips will only tie your identity down even more securely, while make interactions easier.  Also, your credit card info is usually already on the phone somewhere already.  Link that in to the Apple ID's and you immediately create a huge block of unique active users of a defacto system, all with real identities in place and real credit cards attached, all doing business with the same system.  A system that reaches out into a myriad of quality services that have all been set up ahead of time.  A solution like that might have some momentum as to deciding what systems become standardised in the future.  


Edited by Gazoobee - 7/24/12 at 9:24pm
post #13 of 22
Quote:
Originally Posted by charlituna View Post

 

As I understand it NFC has multiple versions and until that is settled I don't really see Apple jumping in. Particularly since Apple being a US company is very US focused and there's little to no widespread NFC support.

 

The NFC standard incorporates all the existing contactless standards into one. (Felica, PayPass and PayWave, existing transit system tickets are all compatible)

 

The problem with NFC at the moment is every player wants control of the "secure element". Control of the secure element is seen as the gateway to untold billions of dollars of new revenue in the future.

 


Carriers want it located in the SIM

Banks don't want it in the SIM

Handset makers want it in the phone hardware.

 

However, carriers are the customers for the phones. They buy them from Apple etc and sell them to customers bundled with service.

 

Apple wants it in the phone's hardware. Blackberry is also in this category.

Nokia sided with carrier's and only supports secure elements in the SIM.

Samsung didnt' take sides and their NFC models work with secure elements in either locations. 

 

Banks see carriers as upcoming competitors.

Carriers see payments as a new market.

 

 

 

 

Apple may encourage carriers to make their own Passbook NFC apps to bring them on side (e.g. isis)

post #14 of 22
Quote:
Originally Posted by SolipsismX View Post


When I first saw Passbook during WWDC the first thing I thought of was a stepping stone to an NFC-capable iPhone with proper backend support for the service. I'm glad I'm not the only one who saw it that way.

 

Personally, I don't mind coupons, passes and tickets on iPhone or iPad, but I'd never use any app that turns my phone into a direct connection to my bank. Maybe it's just me.

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Proud AAPL stock owner.

 

GOA

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post #15 of 22
That's why a secure, encrypted transaction via an NFC-enabled smartphone is better. Register a credit card to the phone, and pay after authorizing.

Dumber? Handing over a credit card to a restaurant server who walks away with it for ten minutes. But if there's any fraud, the credit card company offers some decent consumer protection (merchant dispute), especially if you use a better bank (e.g., American Express).

Even more stupid is using a debit/check card. Very little anti-fraud measures, less buyer protection, almost no extended warranty benefit, etc. Plus, it's tied directly to your bank account. That would be the last way to pay for anything.
post #16 of 22
Quote:
Originally Posted by retroneo View Post

 

The NFC standard incorporates all the existing contactless standards into one. (Felica, PayPass and PayWave, existing transit system tickets are all compatible)

 

The problem with NFC at the moment is every player wants control of the "secure element". Control of the secure element is seen as the gateway to untold billions of dollars of new revenue in the future.

 


Carriers want it located in the SIM

Banks don't want it in the SIM

Handset makers want it in the phone hardware.

 

However, carriers are the customers for the phones. They buy them from Apple etc and sell them to customers bundled with service.

 

Apple wants it in the phone's hardware. Blackberry is also in this category.

Nokia sided with carrier's and only supports secure elements in the SIM.

Samsung didnt' take sides and their NFC models work with secure elements in either locations. 

 

Banks see carriers as upcoming competitors.

Carriers see payments as a new market.

 

 

 

 

Apple may encourage carriers to make their own Passbook NFC apps to bring them on side (e.g. isis)

This is the major downfall of google wallet. Google wallet is awesome for those of us who have sprint, an unlocked nexus, or can hack our phones. For everyone else your carrier says hell no. I think this is a hurdle even a company like apple is going to have some trouble with. I am interested to seeing what apple gives up to have NFC payments on its phones. 

post #17 of 22
Quote:
Originally Posted by blackbook View Post

NFC on next iPhone? Check.

 

They better do it. Otherwise I'll just keep my perfectly good iPhone 4 for another year.
post #18 of 22
Quote:
Originally Posted by Apple v. Samsung View Post

This is the major downfall of google wallet. Google wallet is awesome for those of us who have sprint, an unlocked nexus, or can hack our phones. For everyone else your carrier says hell no. I think this is a hurdle even a company like apple is going to have some trouble with. I am interested to seeing what apple gives up to have NFC payments on its phones. 

 

Google does not drive a market, Apple does.  That is the difference.

post #19 of 22

I agree with much of what you wrote (especially the part about handing over a credit card to a restaurant server, no one with a brain still does that anymore in 2012, do they? ;-) ), but you started in the middle of the list.

 

First choice: cash.  currency.  REAL money.  (for most, not all items; few people are going to pay cash for a new MacBookPro)

 

Second choice: physical check.  For items where payment by mail is required or cash is Really Truly inconvenient (not just saving 10 seconds).  Consumers are fooled into thinking there are no costs associated with using plastic, but those costs are all indirect.  Issuing banks and interchanges do not operate for free, and the costs are ultimately paid for by consumers.

 

Then comes your list, but after the NFC.  I will not use NFC, nor will I buy a device that contains it, unless it can be physically powered off and rendered incapable of responding to any kind of ping.  This is NOT due to security issues, but due to trackability and identification issues.  Yes, most cell phones can already be tracked to some degree, but only by the telcos, and if you use pre-pay you can avoid the one-to-one relationship between your person and the phone.  Sadly, we are becoming more like a police/surveillance state with every new "consumer convenience" technology.

 

Originally Posted by cvaldes1831 View Post

That's why a secure, encrypted transaction via an NFC-enabled smartphone is better. Register a credit card to the phone, and pay after authorizing.
Dumber? Handing over a credit card to a restaurant server who walks away with it for ten minutes. But if there's any fraud, the credit card company offers some decent consumer protection (merchant dispute), especially if you use a better bank (e.g., American Express).

Even more stupid is using a debit/check card. Very little anti-fraud measures, less buyer protection, almost no extended warranty benefit, etc. Plus, it's tied directly to your bank account. That would be the last way to pay for anything.
No Matte == No Sale :-(
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No Matte == No Sale :-(
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post #20 of 22

I want to know how to get IOS 6. Everyone is talking about it but I can't find it.

post #21 of 22
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Originally Posted by swmp321 View Post

I want to know how to get IOS 6. Everyone is talking about it but I can't find it.

Create a developer account and pay the $99 to be an IOS developer for a year and you'll have access to all iOS 6 betas.

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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post #22 of 22
Originally Posted by swmp321 View Post
I want to know how to get IOS 6.

 

Wait until October.

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Originally posted by Relic

...those little naked weirdos are going to get me investigated.
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