WSJ: Apple 'laying groundwork' for mobile payments system
A report on Friday claims Apple has expressed interest in handling payments for physical goods and services on its iDevices, suggesting a branded mobile payment solution is in the offing.
Apple patent illustration for a touchless mobile payment system. | Source: USPTO
Citing people familiar with the matter, The Wall Street Journal reports Apple CEO Tim Cook and SVP of Internet Software and Services Eddy Cue met with technology industry leaders to discuss a possible mobile payments system rollout.
Further, the publication learned that Apple tapped executive Jennifer Bailey to build out an in-company payment business. Bailey was previously in charge of running the company's online stores.
Apple is a late-comer to the mobile payments game as rival Google has been experimenting with so-called e-wallet technology for some time. In some implementations, Android handsets carry NFC technology that, in concert with Google Wallet, allow for touchless payments at supported POS systems. Despite early efforts and proliferation of smart devices that would serve as optimal platforms for the tech, a clear market frontrunner has yet to emerge.
With its various online properties, like iTunes and the Online Apple Store, Apple would have a huge installed customer base if it were to roll out a payments system. The sheer volume of credit cards on file would go a long way in convincing retailers to adopt an Apple-branded solution.
While Apple's methodology calls for a "go slow" approach, Over the past months, the company has been quietly laying groundwork that is quickly advancing toward a final solution. Passbook was released for iOS as a built-in app, though the software's functionality is currently limited to gift card, coupon and ticket redemption.
Most recently, iBeacon added another piece to the puzzle by granting iPhones the ability to make over-the-air payments. iBeacon's micro-location technology leverages Bluetooth Low Energy for two-way communication with in-store beacon nodes. Users can be alerted to deals, specials, store maps and other information, while providers can gather customer data.
In theory, iBeacon can be used as the backbone of a touchless payment system, though no signs of such an implementation have surfaced. So far, the technology has seen experimental adoption at a number of retailers like Macy's, as well as all U.S. Apple Stores.
Apple has filed for a number of patents regarding mobile payment, the most recent of which covered secure touchless payment systems.
Apple patent illustration for a touchless mobile payment system. | Source: USPTO
Citing people familiar with the matter, The Wall Street Journal reports Apple CEO Tim Cook and SVP of Internet Software and Services Eddy Cue met with technology industry leaders to discuss a possible mobile payments system rollout.
Further, the publication learned that Apple tapped executive Jennifer Bailey to build out an in-company payment business. Bailey was previously in charge of running the company's online stores.
Apple is a late-comer to the mobile payments game as rival Google has been experimenting with so-called e-wallet technology for some time. In some implementations, Android handsets carry NFC technology that, in concert with Google Wallet, allow for touchless payments at supported POS systems. Despite early efforts and proliferation of smart devices that would serve as optimal platforms for the tech, a clear market frontrunner has yet to emerge.
With its various online properties, like iTunes and the Online Apple Store, Apple would have a huge installed customer base if it were to roll out a payments system. The sheer volume of credit cards on file would go a long way in convincing retailers to adopt an Apple-branded solution.
While Apple's methodology calls for a "go slow" approach, Over the past months, the company has been quietly laying groundwork that is quickly advancing toward a final solution. Passbook was released for iOS as a built-in app, though the software's functionality is currently limited to gift card, coupon and ticket redemption.
Most recently, iBeacon added another piece to the puzzle by granting iPhones the ability to make over-the-air payments. iBeacon's micro-location technology leverages Bluetooth Low Energy for two-way communication with in-store beacon nodes. Users can be alerted to deals, specials, store maps and other information, while providers can gather customer data.
In theory, iBeacon can be used as the backbone of a touchless payment system, though no signs of such an implementation have surfaced. So far, the technology has seen experimental adoption at a number of retailers like Macy's, as well as all U.S. Apple Stores.
Apple has filed for a number of patents regarding mobile payment, the most recent of which covered secure touchless payment systems.
Comments
Cool article content though. It's beyond me why it's taking so long. Perhaps they needed Toich Id to generate enough confidence. Perhaps it's also to be timed with the introduction of... New Apple TV that also works as an iBeacon pay center?
Interesting that their patent diagram includes NFC as well.
Interesting and needed. The financial institutions are too incompetent to move to secure credit cards, like europe did decades ago. So, hopefully, Apple's solution will eliminate Visa, MasterCard and the whole lot of them, ending their expensive and useless monopoly.
It should be possible to just transfer directly from your bank account to any company. Yes, the credit card companies are useless middlemen, but so would Apple be.
In terms of current credit cards, millions (including me) have loyalty cards. Mine is a British Airways Visa from Chase and we have had a few trips to the UK & Europe with those miles, and another trip or two (depending on class flown) available now. I'll pass on any system that screws up that benefit for me.
NFC is part of the disinformation and distraction Apple uses to keep the competition chasing their tails.
Way to miss the big picture for a few trinkets.
See this:
http://www.patentlyapple.com/patently-apple/2014/01/apple-patent-reveals-secure-iwallet-system-with-ibeacon.html#more
what about iWallet, or iMoney, or iShop, or iPurchase?
I've mentioned this a few days ago and I will say it again. I predict that the next iPhone will include NFC. They will combine their own technologies, iBeacan, Bluetooth, and NFC. Why am I so certain? Because the latest generation of Broadcom Bluetooth and Wi-Fi combo chips (as well as chips from other companies) now include NFC. In other words, Apple doesn't end to compromise their circuit board real estate to make room for it. It comes with the chip they use for Bluetooth and Wi-Fi. If it's there, in the chip, it's in the phone. It's possible that iOS 8 could launch without code making it available to apps, but not likely.
Don't hold your breath. I believe you will be proved wrong.