By fiercemobile
Apple will embed Near Field Communications-based mobile payment services into the next iteration of its iPhone and iPad devices, enabling consumers to make retail purchases by swiping their smartphone or tablet in front of a point-of-sale digital reader unit. Citing sources including Richard Doherty, director of consulting firm Envisioneering Group, Bloomberg reports that Apple engineers are presently at work on the m-payment initiative; Crone Consulting founder and CEO Richard Crone adds the service likely will leverage Apple customer information already on file, e.g. credit card account numbers, iTunes gift card balances and bank data.
At present, Apple pays credit card processing fees on all iTunes and App Store purchases. By introducing payment services that directly tap customer bank accounts (a la PayPal), Apple could reduce its own costs and enable its partners to trim their prices of their respective products and services. Doherty adds the mobile payment service, slated to go live in mid-2011, will also introduce a loyalty points program--moreover, Apple is considering heavily subsidizing or even giving away payment terminal hardware to small businesses in an effort to accelerate the expansion of NFC technology. An Apple spokeswoman declined to comment.
Apple's decision to embrace NFC is not unexpected. In August 2010, the computing giant named Benjamin Vigier product manager of its mobile commerce unit--Vigier previously served as product manager for mobile wallet, payment and NFC services at mobile financial solutions provider mFoundry, overseeing m-commerce initiatives for clients including PayPal and Starbucks. Prior to mFoundry, he led m-commerce and NFC efforts at flash memory manufacturer Sandisk and French operator Bouyges Telecom. From a competitive standpoint, Apple must also keep pace with archrival Google Version 2.3 of its Android mobile operating system supports NFC, with some future Android devices slated to contain chips enabling users to "bump" their phone against participating retailers' point-of-sale system, funding purchases without cash or credit. Google adds it will leverage the bump solution to enable consumers to touch Android smartphones together to share information or data.
Some insiders speculate Apple's move into NFC technologies encompasses more than payment services--buzz indicates Apple is plotting an NFC-enabled remote computing solution allowing users to wave their iPhone at any compatible Mac, loading all their personal applications, data and settings from the smartphone to the desktop. In effect, any Mac would mirror the user's own, with the original settings restored when the individual moves out of range. Look for Apple to unveil other proximity-based innovations as well.
In November, Verizon Wireless, AT&T and T-Mobile USA announced plans to jointly launch Isis, a nationwide mobile commerce network enabling consumers to make point-of-sale purchases via mobile device. Isis CEO Michael Abbott--a financial services veteran most recently with GE Capital--said the ultimate goal is the development of a mobile wallet solution that effectively renders obsolete cash, credit and debit cards, loyalty cards, coupons, tickets and transit passes.
Isis plans to introduce NFC payment services in key geographic markets within the next 18 months, partnering with Discover Financial Services to build the necessary mobile payment structure. Discover Financial Services' payment network is accepted at over 7 million merchant locations nationwide. Isis adds that Barclaycard US is expected to be the first issuer on the network, offering multiple mobile payment products.
Apple will embed Near Field Communications-based mobile payment services into the next iteration of its iPhone and iPad devices, enabling consumers to make retail purchases by swiping their smartphone or tablet in front of a point-of-sale digital reader unit. Citing sources including Richard Doherty, director of consulting firm Envisioneering Group, Bloomberg reports that Apple engineers are presently at work on the m-payment initiative; Crone Consulting founder and CEO Richard Crone adds the service likely will leverage Apple customer information already on file, e.g. credit card account numbers, iTunes gift card balances and bank data.
At present, Apple pays credit card processing fees on all iTunes and App Store purchases. By introducing payment services that directly tap customer bank accounts (a la PayPal), Apple could reduce its own costs and enable its partners to trim their prices of their respective products and services. Doherty adds the mobile payment service, slated to go live in mid-2011, will also introduce a loyalty points program--moreover, Apple is considering heavily subsidizing or even giving away payment terminal hardware to small businesses in an effort to accelerate the expansion of NFC technology. An Apple spokeswoman declined to comment.
Apple's decision to embrace NFC is not unexpected. In August 2010, the computing giant named Benjamin Vigier product manager of its mobile commerce unit--Vigier previously served as product manager for mobile wallet, payment and NFC services at mobile financial solutions provider mFoundry, overseeing m-commerce initiatives for clients including PayPal and Starbucks. Prior to mFoundry, he led m-commerce and NFC efforts at flash memory manufacturer Sandisk and French operator Bouyges Telecom. From a competitive standpoint, Apple must also keep pace with archrival Google Version 2.3 of its Android mobile operating system supports NFC, with some future Android devices slated to contain chips enabling users to "bump" their phone against participating retailers' point-of-sale system, funding purchases without cash or credit. Google adds it will leverage the bump solution to enable consumers to touch Android smartphones together to share information or data.
Some insiders speculate Apple's move into NFC technologies encompasses more than payment services--buzz indicates Apple is plotting an NFC-enabled remote computing solution allowing users to wave their iPhone at any compatible Mac, loading all their personal applications, data and settings from the smartphone to the desktop. In effect, any Mac would mirror the user's own, with the original settings restored when the individual moves out of range. Look for Apple to unveil other proximity-based innovations as well.
In November, Verizon Wireless, AT&T and T-Mobile USA announced plans to jointly launch Isis, a nationwide mobile commerce network enabling consumers to make point-of-sale purchases via mobile device. Isis CEO Michael Abbott--a financial services veteran most recently with GE Capital--said the ultimate goal is the development of a mobile wallet solution that effectively renders obsolete cash, credit and debit cards, loyalty cards, coupons, tickets and transit passes.
Isis plans to introduce NFC payment services in key geographic markets within the next 18 months, partnering with Discover Financial Services to build the necessary mobile payment structure. Discover Financial Services' payment network is accepted at over 7 million merchant locations nationwide. Isis adds that Barclaycard US is expected to be the first issuer on the network, offering multiple mobile payment products.
No comments:
Post a Comment