Apple quietly begins iPhone as wallet in-store trials - Computerworld Blogs [08Nov11] - 0 views
-
The mobile wallet is becoming a reality. Apple [AAPL] has already begun plotting to turn your iPhone into an iWallet which uses iTunes as your virtual bank.
-
The company this week begins rolling out its EasyPay payment system in US retail stores. Available inside Apple's own Apple Store for iOS app, EasyPay lets users purchase accessories at Apple retail stores just by scanning in the barcode and completing the transaction on their iOS device.
-
Payment is taken using your Apple ID. Users need to enter their ID and then payment is taken using the credit card associated with their iTunes account.
- ...9 more annotations...
-
This is a much bigger deal than it may seem, as World Payments Report 2011 informs: -- 15% of all card transactions will be mobile by 2013.-- 20 billion credit card transactions take place each year.
-
PayPal should be shaking in its boots. And as for Google Wallet? One day, you'll be paying for your public transit fees using iTunes and your iPhone.
-
There's three ways Apple may choose to create a payment infrastructure. It is possible there are more, but we'll settle on three for now:
-
-- NFC support in the iPhone 5Advantages: NFC is fully supported by the credit companies.Disadvantages: NFC isn't yet ready for prime time, but is expected to reach a much wider market by 2013.
-
-- Bluetooth-based payments: Advantages: It is possible now to use Bluetooth to make secure payment exchanges.Disadvantages: There's no agreed financial Bluetooth-based transfer standard, meaning there's no back-up or insurance in case of fraud.
-
-- Over-the-airAdvantages: Does it matter if you wave your device across a terminal? Why not pay from where you are? You could buy goods and services in this way.Disadvantages: I would argue that Apple's devices would still require RFID tags in order that payment status be easily verified. If RFID is required, then NFC makes sense.
-
What makes Apple's iTunes approach effective is that by using its existing credit service as a bank, it achieves an immediate potential user base of hundreds of millions of people, while also offering an extra layer of protection between banks and customers. If fraud takes place, Apple's insurance should protect a customer, reducing the risk to the banks.
-
Tie these NFC systems up with Apple's other in-development mobile technologies and there's lots of potential scenarios.
-
Some statistics may be of interest:-- 50,000 Dutch nurses now use NFC to track and manage home healthcare visits.-- The Museum of London already offers interactive NFC services.-- Over 60% of manufacturers plan to put NFC in cars.