According to the rumors, Apple is apparently working on a mobile payment service of their own that could debut on the 9th of September alongside the iPhone 6. This is widely believed to be the case as there have been evidence to suggest that the inclusion of NFC in the iPhone 6 will be used to facilitate such a service.
There have also been rumors that indicates that Apple has teamed up with American Express, Visa, MasterCard, and Nordstrom. That’s all well and good but will retailers be willing to start accepting Apple’s mobile payment service as the new standard? While it remains to be seen, Baird analyst Colin Sebastian thinks at the very least it could pose a threat to PayPal.
According to Sebastian, “We believe Apple’s closed-platform, software expertise, and brand power position it well. Additionally, integration with its anticipated wearable device could be a key feature. We believe mobile payments could be a significant opportunity.” While admittedly it might take some convincing, the fact remains that Apple has millions of credit cards on file, thanks to iTunes, so participating in this new service will not be a huge hassle for customers as all their information is already there.
It will be interesting to see if Apple will be able to overtake PayPal in the mobile payment scene, but it should be noted that PayPal has been established a lot longer and many are used to the company’s payment system to make purchases online and on websites such as eBay, so it will be up to Apple to convince them that their service is better, but what say you?
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