I wish Apple could even take it a step further and compete with Square and Paypal directly. By this I mean they could allow users to accept Apple payments on their websites. Allow us to create buttons, shopping carts, the whole works. What would even be better is if Apple could compete on the price they charge in transaction fees. When Google Checkout first started they offered a price of only 2.2% compared to Paypal charging a fee of 2.9% but then not many months later Google suddenly went to 2.9% just like Paypal. If Apple could offer an alternative payment system and charge lower than 2.9% they would get a lot of people to switch their website stores to them from Paypal or Google since those fees add up very fast.
I use Paypal occasionally (esp. for foreign payments), but it has absolutely the worst interface of any website (except for Amazon's).
Gives me a headache every time I use it. Nothing could be more un-Apple-like.
I've used it for purchases on a couple of websites that I manage. What I found is that a few of the people won't use it because they "heard bad things" about Paypal.
Apple gets involved too deeply with Paypal and this will be the headline:
Apple and Paypal are there to rip off your bank account!
It's the entire CC industry that is insecure. Europe went to secure chip CC system over 20 years ago. The banks and CC industry is too wedded to profits for investors and CEOs and government bailouts and bribes to have any interest in decreasing profits and this mansions to change.
There is no solution out there for paypal and Apple unless they can bypass at least the CC industry. It doesn't matter if Apple has all these accounts; they're attached to CCs and are insecure by for that reason alone. Of the Target victims, how many of them have accounts with Apple that are linked to the hacked CCs?
TouchID will not protect us as long as the financial infrastructure is itself insecure and will remain that way for the foreseeable future.
According to recent Apple patents, your iPhone would replace user-specific CC information (now given to the seller) with an anonymous token (with a shared secret known to your iPhone and the CC Company's Server) good for that transaction only.
Hacking any part of the exchange of data would not divulge any CC or user data and the token, having already been used would have no value.
I wish Apple could even take it a step further and compete with Square and Paypal directly.
I would be worried that it may turn into another "maps" thing. Taking on too many areas and trying to diversify your company can lead to watered down products. I'm not saying Apple can't do it, but there is a lot of work that would have to be done before it could be implemented, and I wouldn't want them to lose focus on their products and services already in place
For several years, Apple allowed members to log in to iTunes with their AOL IDs and Passwords.
On a different topic, look for Google to become the world's most valuable company today or tomorrow. There is currently a $70 billion difference between the companies. All Wall Street has to do is drop Apple's stock while pushing up Google's stock. And, with Google's earnings on tap later today, there is a really good chance Google's stock will increase no matter what Google announces.
imo earnings tonight will matter. But with Google dropping Motorola, they got rid of the low margins part of there business and they are a key player at the low to mid-range market in phones and tablets. imo this is where the growth is atm until we have serious rumors of Apple entering a new market category.
The only I see Apple go up in the next 6 months is if Icahn have is way with the buybacks.
At least we can see Carl Icahn's plan much clearer now.
Yeah, it's possible he wanted Paypal to be spun off into a company for purchasing either by him (he'd have to get other investors involved or just buy a controlling stake) or by Apple:
One thing Paypal has going for it is they have an established infrastructure for businesses and online wallets (iTunes wallets are for Apple purchases) and the marketing is already out there. They can say that anything that currently takes Paypal would automatically accept Apple's payments.
Apple does have more customers than Paypal - 600 million cards vs 137 million active Paypal accounts, 8 million transactions per day with Paypal, iTunes is over 50 million per day:
Buying eBay is too much at $68b. It wouldn't benefit Apple to do that. If they spun off Paypal, it could be under half that. Although there is an issue of losing money taking time rolling out their own services, even if it's a year, Paypal only makes $1.6b per quarter in revenue so it's not as if they'd be missing out more revenue than they'd be spending on the purchase.
I think Apple has the facilities to do this on their own and keeping it under their control means they don't have to support 3rd party hardware.
They can call it Papple:
[VIDEO]
?Pay is ok too. Sounds a bit like Apple Pie. iPay is a more obvious option I suppose.
Hey. Wasn’t eBay going to sell PayPal, or was that someone’s wish?
Forget partnering. Apple has a history of partners STEALING THEIR INTELLECTUAL PROPERTY. Either buy PayPal or go it alone.
indeed, imo paypal will want to get into android devices too so Apple will help pay for a structure that will then be used more on android devices. Pretty much like google did.
Apple has millions of "credit cards" into itunes, so its pretty obvious to me that Apple needs to strike deals with credit card companies like Mastercard or Visa for there mobile payment system.
First I think a partnership with Paypal is bad idea, they are not the most consumer friendly company.
If Apple got into the consumer credit business they have plenty of money to make that happen this could be another review stream for them. maybe wall street will like that. Visa and Master Card have been doing well.
Another thing Apple could offer sellers is what they do for themselves for iTunes services -- [B][I]reduce transaction fees paid to the CC Processor.[/I][/B]
If you pay for small purchase with a credit card, the seller is charged a transaction fee.
When you pay for a small purchase through iTunes, iTunes (the seller) will often hold the transaction for later processing. The theory being that if you are in the iTunes store, and make a small purchase, it is likely that you will make additional small purchases while in the store. By holding these transactions, Apple can aggregate them into a single transaction with the CC Processor.
It's been a while, but let's assume a CC Transaction costs the seller a $0.25 Transaction Fee (In addition to a percent of the transaction amount).
So, you enter the iTunes Store, browse around and buy 5 Songs for $1.00 each.
If Apple submits 5 separate transactions, Apple would be charged 5 x $0.25 or $1.25 total for 5 songs.
By holding and aggregating these into a single transaction, Apple is charged just $0.25 -- a cost of $0.05 per song as opposed to $0.25 per song
Comments
I wish Apple could even take it a step further and compete with Square and Paypal directly. By this I mean they could allow users to accept Apple payments on their websites. Allow us to create buttons, shopping carts, the whole works. What would even be better is if Apple could compete on the price they charge in transaction fees. When Google Checkout first started they offered a price of only 2.2% compared to Paypal charging a fee of 2.9% but then not many months later Google suddenly went to 2.9% just like Paypal. If Apple could offer an alternative payment system and charge lower than 2.9% they would get a lot of people to switch their website stores to them from Paypal or Google since those fees add up very fast.
LOL So that's where he got the $500 million
Carl is hedging his bets. Buys into Apple. Buys into Ebay. Begs Ebay to sell Paypal. Paypal comes knocking on Apple's door.
[Hmmmm... now that I look at that again... maybe it's Ebay's way of fighting off Icahn. Get Apple involved.]
I use Paypal occasionally (esp. for foreign payments), but it has absolutely the worst interface of any website (except for Amazon's).
Gives me a headache every time I use it. Nothing could be more un-Apple-like.
Or both... sometimes the value of an agreement is more PR and Marketing rather than actual revenue.
Apple's billions in the bank = iBank or AppleCard
The only problem is, they are incredibly low-valued (low P/E) businesses. Apple's valuation will look even worse....
I use Paypal occasionally (esp. for foreign payments), but it has absolutely the worst interface of any website (except for Amazon's).
Gives me a headache every time I use it. Nothing could be more un-Apple-like.
I've used it for purchases on a couple of websites that I manage. What I found is that a few of the people won't use it because they "heard bad things" about Paypal.
Apple gets involved too deeply with Paypal and this will be the headline:
Apple and Paypal are there to rip off your bank account!
I can just feel it...
What possibly Apple would gain partnering with MOST hatred service provider in the world?!!!
On the same note, Paypal should shut everything down and get the hell out of Internet once and for all ... NOW it's their best time.
According to recent Apple patents, your iPhone would replace user-specific CC information (now given to the seller) with an anonymous token (with a shared secret known to your iPhone and the CC Company's Server) good for that transaction only.
Hacking any part of the exchange of data would not divulge any CC or user data and the token, having already been used would have no value.
I would be worried that it may turn into another "maps" thing. Taking on too many areas and trying to diversify your company can lead to watered down products. I'm not saying Apple can't do it, but there is a lot of work that would have to be done before it could be implemented, and I wouldn't want them to lose focus on their products and services already in place
For several years, Apple allowed members to log in to iTunes with their AOL IDs and Passwords.
On a different topic, look for Google to become the world's most valuable company today or tomorrow. There is currently a $70 billion difference between the companies. All Wall Street has to do is drop Apple's stock while pushing up Google's stock. And, with Google's earnings on tap later today, there is a really good chance Google's stock will increase no matter what Google announces.
imo earnings tonight will matter. But with Google dropping Motorola, they got rid of the low margins part of there business and they are a key player at the low to mid-range market in phones and tablets. imo this is where the growth is atm until we have serious rumors of Apple entering a new market category.
The only I see Apple go up in the next 6 months is if Icahn have is way with the buybacks.
Yeah, it's possible he wanted Paypal to be spun off into a company for purchasing either by him (he'd have to get other investors involved or just buy a controlling stake) or by Apple:
http://www.delawareonline.com/article/20140126/BUSINESS/301260028/eBay-shuns-Icahn-moves-keep-PayPal-house
One thing Paypal has going for it is they have an established infrastructure for businesses and online wallets (iTunes wallets are for Apple purchases) and the marketing is already out there. They can say that anything that currently takes Paypal would automatically accept Apple's payments.
Apple does have more customers than Paypal - 600 million cards vs 137 million active Paypal accounts, 8 million transactions per day with Paypal, iTunes is over 50 million per day:
https://www.paypal-media.com/about
http://www.businessinsider.com/chart-of-the-day-apple-has-600-million-accounts-blowing-away-every-other-company-2013-11
Buying eBay is too much at $68b. It wouldn't benefit Apple to do that. If they spun off Paypal, it could be under half that. Although there is an issue of losing money taking time rolling out their own services, even if it's a year, Paypal only makes $1.6b per quarter in revenue so it's not as if they'd be missing out more revenue than they'd be spending on the purchase.
I think Apple has the facilities to do this on their own and keeping it under their control means they don't have to support 3rd party hardware.
They can call it Papple:
[VIDEO]
?Pay is ok too. Sounds a bit like Apple Pie. iPay is a more obvious option I suppose.
Hey. Wasn’t eBay going to sell PayPal, or was that someone’s wish?
Forget partnering. Apple has a history of partners STEALING THEIR INTELLECTUAL PROPERTY. Either buy PayPal or go it alone.
indeed, imo paypal will want to get into android devices too so Apple will help pay for a structure that will then be used more on android devices. Pretty much like google did.
Apple has millions of "credit cards" into itunes, so its pretty obvious to me that Apple needs to strike deals with credit card companies like Mastercard or Visa for there mobile payment system.
Fascinating chart! Apple is sitting on so much unrealized value.... ugh.
First I think a partnership with Paypal is bad idea, they are not the most consumer friendly company.
If Apple got into the consumer credit business they have plenty of money to make that happen this could be another review stream for them. maybe wall street will like that. Visa and Master Card have been doing well.
Not sure if you read that correctly. Three examples: MS, Googs,Sammy
Hey. Wasn’t eBay going to sell PayPal, or was that someone’s wish?
Forget partnering. Apple has a history of partners STEALING THEIR INTELLECTUAL PROPERTY. Either buy PayPal or go it alone.
LOL, come on.
Month one, Mobile Payments.
Month two, PayPal Phone!!
I don't think so.
I am for this only if Apple's customer service/reputation/quality/dispute resolution trumps that of PayPal's.
PayPal's policies are the worst in the industry. Any industry. Just Google 'PayPal horror stories'. Wait, just Google 'PayPal'.
If you pay for small purchase with a credit card, the seller is charged a transaction fee.
When you pay for a small purchase through iTunes, iTunes (the seller) will often hold the transaction for later processing. The theory being that if you are in the iTunes store, and make a small purchase, it is likely that you will make additional small purchases while in the store. By holding these transactions, Apple can aggregate them into a single transaction with the CC Processor.
It's been a while, but let's assume a CC Transaction costs the seller a $0.25 Transaction Fee (In addition to a percent of the transaction amount).
So, you enter the iTunes Store, browse around and buy 5 Songs for $1.00 each.
If Apple submits 5 separate transactions, Apple would be charged 5 x $0.25 or $1.25 total for 5 songs.
By holding and aggregating these into a single transaction, Apple is charged just $0.25 -- a cost of $0.05 per song as opposed to $0.25 per song
I was going to say something stupid just like this to reach my daily trolling quota but you've beaten me to it
Thanks for admitting you think Google stole nothing from Apple. Now we know to listen to nothing you say in the future.
I don't think so.
But you already know that’s not at all what I mean, so your bringing up the ludicrous is nothing more than a logical fallacy.