Tag: Mobile Payments

Apple’s iPhone 6 Could Be Contender in Mobile Payments

apple-mobile-payment_largeThe newest version of Apple’s iPhone is rumored to include a long-anticipated mobile payment system. Though Apple made fun of the technology when it introduced AirDrop, many analysts expect the next iteration of iPhone to have Near Field Communication, or NFC, for contactless payments. Other rumors point to partnership discussions between Apple and Visa.

This would all be on top of Apple’s existing payments and security strengths. The company already has access to over 800 million registered credit cards through iTunes accounts, which could make launching the new mobile payment platform significantly easier. And as Apple CEO Tim Cook said in January, “The mobile payment area in general is one that we’ve been intrigued with. That was one of the thoughts behind Touch ID. … You can tell by looking at the demographics of our customers and the amount of commerce that goes through iOS devices versus the competition that it’s a big opportunity.”

Apple’s former head of online stores, Jennifer Bailey, has reportedly constructed a team for a mobile payments project, and former members of the Visa and J.P Morgan Chase team have recently joined the Apple family.

By 2017, Forrester Research estimates U.S. consumers will spend $90 billion in mobile payments, and Apple may just be looking to influence a large slice of that pie with the iPhone 6.

Changing Mobile Payment Technology

mobile_commerce_2Between November 2013 and January 2014, 32 percent of online sales were made with mobile devices, according to the IMRG Capgemini Quarterly Benchmarking Study. Additionally, this figure is predicted to continue to grow.

The easier it is for consumers to make purchases on mobile devices, the more likely they are to transact. This is why the bulk of mobile sales are  digital goods purchased using built-in single-click transaction systems, such as iTunes and Google Play. Cumbersome experiences, such as having to enter credit  card details for every purchase, limit mobile payment adoption.

The CEO of ETA, Jason Oxman states, “shopping cart abandonment is one of the major issues merchants are facing when it comes to mobile. The ability to make payments is a significant part of the issue—after all, without successful payment, no transaction can be completed.…Making mobile payments faster and easier is a big driver for the types of mobile technology that are being developed.” 

As mobile commerce grows, it is adapting to incorporate more of the commerce value change. As Ariel Bardin of Google states, “in this new world of constant connectivity, mobile is blurring the lines between the online and offline worlds. People are growing to expect the ability to transact instantly using their smartphones-whether they’re in cyberspace or standing in your retail space.”