iTunes accounts with credit cards a 'tremendous asset' for potential Apple e-wallet

Posted:
in iPhone edited January 2014
With Apple rumored to launch a mobile e-wallet in the coming years, potentially as soon as this year, one analysis has noted that the iPhone maker could have a leg up on previous efforts, like Google Wallet, because of the fact that Apple already has hundreds of millions of users' credit card numbers tied to their iTunes accounts.


Passbook currently allows digital ticketing and store cards, but lacks e-wallet functions.


Gene Munster of Piper Jaffray said in a research note to investors on Friday, and provided to AppleInsider, that he believes Apple will make a push into the digital wallet space in the next few years. While some recent rumors have suggested an e-wallet could be tied to fingerprint scanning functionality in this year's so-called "iPhone 5S," he suggested such a feature may not be likely to materialize until 2014.

But the key factor for Apple is iTunes: As of January, the company had more than a half-billion active iTunes accounts linked to credit cards. Users' existing accounts are already used for purchases on the iTunes Store, App Store, iBookstore, Newsstand, and in-app purchases.

If and when Apple does implement its digital wallet solution, Munster believes the company could use another wireless standard in place of, or possibly in addition to, near-field communications, or NFC. Existing NFC uses carry potential security issues, and Apple has thus far chosen to avoid adding the wireless technology to its existing iPhone models.

Beyond security concerns, one of the "core barriers" to Apple's success are retail partnerships, in Munster's view. He noted that PayPal has done a good job in creating partnerships with retailers.

Apple could have an advantage in this respect because of its existing partnerships with some of the biggest retailers in the U.S.: Walmart, Target and Best Buy. He believes Apple could leverage those relationships to help kickstart its own e-wallet service.

Patent
An Apple patent from earlier this year shows an NFC-powered "E-Wallet" application.


But the analyst also cautioned that Apple's anticipated entry into the mobile payment space does not necessarily guarantee that the company will find success. He noted that Apple's high-profile entrance into the mobile advertising space with "iAds" has failed to live up to the hype and expectations.

"We believe that Apple was never fully committed to mobile advertising as a product, and as a result Apple has not been as big a player in mobile ads as many expected when they announced," he said.

Piper Jaffray has maintained its "overweight" rating for AAPL stock. The firm has a price target of $767.
«13

Comments

  • Reply 1 of 43
    Humm, how about Passbook businesses using the service in Europe. Other than one airline that is linked to Passbook, it is practically a non existant icon on my i Phone 5. When will that change.?
  • Reply 2 of 43
    tallest skiltallest skil Posts: 43,399member


    Originally Posted by Vantaa Mike View Post

    Humm, how about Passbook businesses using the service in Europe. Other than one airline that is linked to Passbook, it is practically a non existant icon on my i Phone 5. When will that change.?


     


    Why do you think this is Apple's question to answer?

  • Reply 3 of 43


    I then ask you why is there a Passbook icon that is basically non useable.?  It is Apples question to address why they haven't 


    signed up businesses in Europe. What is the reason.?  I think it's a fair question to ask, why don't you feel that way.?  

  • Reply 4 of 43


    As someone else living in Europe I wish more apps took advantage of Passbook, but I don't blame Apple for companies not doing so. 

  • Reply 5 of 43
    emig647emig647 Posts: 2,408member

    Quote:

    Originally Posted by Vantaa Mike View Post


    I then ask you why is there a Passbook icon that is basically non useable.?  It is Apples question to address why they haven't 


    signed up businesses in Europe. What is the reason.?  I think it's a fair question to ask, why don't you feel that way.?  



     


    I'm fairly certain, Passbook in it's present form, will go away. There are hardly any businesses that use it in the US as well. I don't participate with any of the businesses in Passbook. It will either be scrapped or re-written imo.

  • Reply 6 of 43
    starbird73starbird73 Posts: 538member

    Quote:

    Originally Posted by emig647 View Post


     


    I'm fairly certain, Passbook in it's present form, will go away. There are hardly any businesses that use it in the US as well. I don't participate with any of the businesses in Passbook. It will either be scrapped or re-written imo.



    It will evolve. I actually find it quite useful. Target - Mobile coupons. Dunkin Donuts (Gift Cards), Walgreens are all official apps. Valpak and Coupons also are apps that feed in. Lemon Wallet is a great app, lets you add nearly any card to Passbook. I have added my Dental and Health ID cars, Best Buy Rewards Zone card. Could also add my Credit Cards and Drivers License if I wanted to.


     


    That doesn't include the airlines. I only fly Southwest, and they have yet to add Passbook to their stable, but I am sure it will come.


     


    I agree, it isn't 100% as "Apple simple" as other apps, but I have found it increasingly useful. I also like that, because of the way we have our iCloud set up, I can add a coupon to it from work and my wife, at the store, has access to it instantly.

  • Reply 7 of 43


    My point is that this is an example of Apple's approach outside of North America that could stand some improvement to make Passbook relevant. 


    I love my i Phone and Macbook Air so Apple products are great in my opinion, just want to see better execution of this app. image

  • Reply 8 of 43
    tallest skiltallest skil Posts: 43,399member


    Originally Posted by Vantaa Mike View Post

    I then ask you why is there a Passbook icon that is basically non useable.?


     


    That's like asking "I ask you then, why is there a language called HTML? I don't have access to this Inter-Net," in 1994.





    It is Apples question to address why they haven't signed up businesses in Europe. 


     


    No, it isn't. There's no 'signing up'. It's on the businesses themselves to build compatibility into their apps and websites. Apple has already done all the work they have to do. You cannot pin this on them.


     


    It's like blaming the owner of a patent (who has opened it for free licensing) for people not adopting said patent. That's insane. He has already done all of the work. 






    Originally Posted by Vantaa Mike View Post


    …just want to see better execution of this app.




     


    And a third time: This. Is. Not. Apple's. Responsibility. The app has been executed well; that's not what you're talking about earlier. It has a feature set and it excels at what it does. People claiming it has (or should have) a different feature set may do that all they wish. What they may not do is BLAME Apple for NOT having that feature set. 


     


    But again, that's a different argument. Yours is that it's somehow Apple's responsibility to force companies to use it. But it's really on THEM.

  • Reply 9 of 43

    Quote:

    Originally Posted by emig647 View Post


     


    I'm fairly certain, Passbook in it's present form, will go away. There are hardly any businesses that use it in the US as well. I don't participate with any of the businesses in Passbook. It will either be scrapped or re-written imo.



     


    There may not be many businesses that use it, but some that do have seen huge adoption rates.  The MLB stadiums that accept Passbook even at the end of last season were seeing 10% of fans coming to baseball games were using Passbook.  In some stadiums that would mean 4,000+ tickets per game using Passbook.  I believe American Airlines also saw incredibly high rates of adoption last year.  Since that time I haven't heard any statistics one way or the other (maybe that is a bad sign, who knows).  

  • Reply 10 of 43
    tallest skiltallest skil Posts: 43,399member


    Originally Posted by GregInPrague View Post

    Since that time I haven't heard any statistics one way or the other (maybe that is a bad sign, who knows).  


     


    "No news is good news."


     


    I'd much rather the industry SHUT THEIR WOR— *Technical difficulties; please stand by* —bout Apple entirely rather than spew the lies they do on a daily basis right now, for example.

  • Reply 11 of 43
    gtrgtr Posts: 3,231member


    I'd buy from them again!


     


    And again.


     


    And again.


     


    And again...

  • Reply 12 of 43
    allenbfallenbf Posts: 993member


    Passbook is great, and I do wish more companies would utilize it. However, I also agree with TS above, that isn't Apple's responsibility. They provide developer tools and an app store, but if a business doesn't design and code an app, that isn't Apple's fault; same deal with Passbook. They provided the tools but it isn't their responsibility to 'sign businesses up.'


     


    Regarding the article, I don't believe that NFC will be in the iPhone 5s (it's almost impossible with the aluminum design anyway). My opinion at this moment is that Apple introduced Passbook as a placeholder, a learning tool for people to get accustomed to using their phone for such...maybe they'll introduce the biometric portion in the iPhone 5s...and then in the iPhone 6, the 2 will come together as an e-wallet. Apple takes a measured approach, so I can see this being the case here.


     


    TL;DR: NFC still isn't everywhere and isn't perfect anyway. Apple might combine Passbook with the biometric home button for the iPhone 5s and then introduce the e-wallet in iPhone 6.


     


    *afterthought: I wonder if Apple could somehow use the biometric home button to somehow get Driver's Licenses into Passbook...hmmmm.

  • Reply 13 of 43
    Scott is here again ? Wow
  • Reply 14 of 43
    charlitunacharlituna Posts: 7,215member

    Quote:

    Originally Posted by Vantaa Mike View Post


    I then ask you why is there a Passbook icon that is basically non useable.?  It is Apples question to address why they haven't 


    signed up businesses in Europe. What is the reason.?  I think it's a fair question to ask, why don't you feel that way.?  



     


    Apple doesn't sign up businesses. They put the tools out there and let folks pick to use them or not. 


     


    I feel your pain. I don't see any reason why my local grocery cards, my library card etc can't be in passbook, but that's their call, not Apples

  • Reply 15 of 43
    charlitunacharlituna Posts: 7,215member

    Quote:

    Originally Posted by Vantaa Mike View Post


    My point is that this is an example of Apple's approach outside of North America that could stand some improvement to make Passbook relevant. 


     



     


    No, it's an example of your lack of proper understanding of the situation. 


     


    Apples approach on this is universal. They put the tool out there but it's up to each company to use it. Or as the old saying goes, they have led the horses to the water, but the horse has to choose to drink

  • Reply 16 of 43
    irelandireland Posts: 17,584member

    Quote:

    Originally Posted by Vantaa Mike View Post



    Humm, how about Passbook businesses using the service in Europe. Other than one airline that is linked to Passbook, it is practically a non existant icon on my i Phone 5. When will that change.?


     


    Don't know, but don't expect understanding from the defensive hive mind around here.

  • Reply 17 of 43
    nasseraenasserae Posts: 3,156member


    I doubt we will see this anytime soon.. not with Visa and MasterCard adding additional service fees to eWallets such as Googles and PayPals.

  • Reply 18 of 43


    There was another article about iRadio and how Apple could leverage its 500 million iTunes accounts to get people to easily sign up.


     


    Out of curiosity I tried to find how many CC's Amazon had on file (being one of the largest online retailers), but they don't publish those figures. Several people have tried to estimate based on % of Prime accounts and other data and the consensus seems to be 90-120 million. If true then Appke's 500 million is very impressive. 


     


    Thats a HUGE asset. 

  • Reply 19 of 43
    charlitunacharlituna Posts: 7,215member

    Quote:

    Originally Posted by NasserAE View Post


    I doubt we will see this anytime soon.. not with Visa and MasterCard adding additional service fees to eWallets such as Googles and PayPals.



    It won't get to there. Most companies will say no to having to give Apple a cut

  • Reply 20 of 43
    asciiascii Posts: 5,941member


    The only problem with saying all the iTunes accounts with credit cards will help Apple, is that all those people by definition already have a credit card, which is already very easy to use. It seems more likely that credit card companies will get together with retailers to add thumbprint readers (or something) to their cash registers, and just leave phone makers out of the loop.

Sign In or Register to comment.