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Limboistik

macrumors regular
Aug 11, 2011
193
5
I've been calling this for the longest time. I hope it really is in the works.

The pieces were coming together when they launched passbook, now after they bought AuthenTec and integrated Touch ID, they're definitely in a strong position to secure leadership in the mobile space.

There is strong competition with PayPal, Square, etc, but there isn't really a clear leader right now, and those all require 3rd party hardware.

With iBeacon and passbook, and all the credit cards they have on file, this is a no brainer.
 

Abazigal

Contributor
Jul 18, 2011
19,457
21,847
Singapore
This will be the selling feature of iOS 8 and will not be available on the 5S due to "hardware restrictions"

With a mobile payments system, you ideally want as many people to adopt it as possible. I can see Apple even moving to support Android phones (those on 4.3 or later with bluetooth 4.0) just to quickly reach that critical mass of users to incentivise outlets to adopt iBeacon in their stores.
 

Rad99004

macrumors 6502
Nov 12, 2009
286
4
This will be the selling feature of iOS 8 and will not be available on the 5S due to "hardware restrictions"
So funny but most likely true

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Unfortunately, the Big Banks will push back if they foresee Apple disrupting their "business as usual". And many American citizens know the kind of cruel bullies the Big Banks can be.

The accounts will still be backed by Bank cards. Apple will want there cut on every transaction. I doubt they will manage 30% on this deal.
 

Rad99004

macrumors 6502
Nov 12, 2009
286
4
All I can say is "Focus Apple" finish one project before you start another. Lets get IOS 7.1 out first.
 

Limboistik

macrumors regular
Aug 11, 2011
193
5
iBeacons is cross platform, so I don't think this will be as much of a walled garden as everything else in their ecosystem. They will most likely let the other platforms regulate themselves, while iOS users will get the benefits of the most seamless integration.
 

herr_neumann

macrumors 6502
Mar 27, 2003
327
4
Roseville, Ca
Any system that maintain real monetary balance also require the provider to be a bank, otherwise it's illegal. I don't see Apple being in the business of becoming a bank.

End users would still have to fund their account, while it's cheaper if you can ACH money out of their bank to fund an account, you would become a bank at that point, and that's a whole different can of worm with regulations and liabilities. So I don't see either of those as realistic reasons.

They do not need to become a bank, just own one. Examples are: GE Capital, GM Financial, Ford Motor Credit, Bank of Tokyo-Mistubishi (started out as part of Mitsubishi group), Sony Financial Services, Samsung Securities

And here is a article from the FT in 2012 about Google and Amazon's forays into the credit business, which could be along the lines Apple might take.
 

Rad99004

macrumors 6502
Nov 12, 2009
286
4
Sir I'm sorry the Apple terms of service don't allow you to buy a %Insert competitor Product name here% with your verified by iCard credit line.
 

Mackan

macrumors 65816
Sep 16, 2007
1,421
91
This will be the selling feature of iOS 8 and will not be available on the 5S due to "hardware restrictions"

Pretty much. Every yearly software and hardware upgrade is carefully crafted to make you buy new and render your 1-2 year old device obsolete.
 

BvizioN

macrumors 603
Mar 16, 2012
5,701
4,819
Manchester, UK
Pretty much. Every yearly software and hardware upgrade is carefully crafted to make you buy new and render your 1-2 year old device obsolete.

People are still using iPhone 4 and 4s. There is people still using original iPad, heck even iPhone 3G! And they are still loving it. How is that obsolete? And please, how is obsolete over a year old iPhone 5 for example? Oh right, it does not have touch ID :rolleyes:
 

MattInOz

macrumors 68030
Jan 19, 2006
2,760
0
Sydney
Payment transaction processing is not the same business as credit line. The banks are in the business of credit lines and actually love PayPal and Square. The ease and proliferation of online payments increased credit utilization created a huge boon for their business. Square and PP's market share canibalized a different market segment, the companies that were in the business of reselling credit card processing to merchants.

Apple's not in the business of being a bank and originating credit, their entry would be a competitor to Square and PP, but wouldn't touch any of the big banks' core businesses.

The really interesting bit that could change the world is if electronic payment can get proliferated into developing countries to become a standard method of payment in the way credit cards are used in industrialized countries.

I think you've nailed it... Apple doesn't need to be whole chain here. A Merchant API, Mifi certified credit card reader. Even if they only got say 0.1% of the transactions they processed they would keep an extra +$50mil of their own revenue a quarter.

Let every tradie with an iPhone use their phone for billing. Let Amazon Kindle app sell content as long as they use the Apple API or any other app and the potential is huge.

The other side of the transaction would be the card issuer, who I'm also assuming get part of the transaction fee, if Apple could turn every iPhone sold in to an Apple branded credit card being used for even +$100 a week of sales then 45mill iPhones a quarter sure adds to a lot money passing through that you only need to skim a very low percentage off to make buckets of money.

One question could you put a low energy bluetooth chip and credit card chip with NFC/Paywave into a standard credit card?
 

Mackan

macrumors 65816
Sep 16, 2007
1,421
91
People are still using iPhone 4 and 4s. There is people still using original iPad, heck even iPhone 3G! And they are still loving it. How is that obsolete? And please, how is obsolete over a year old iPhone 5 for example? Oh right, it does not have touch ID :rolleyes:

It's obsolete if you want to use the features or software that only works, or only provides the best experience, on the newest model. If you don't need that, enjoy the older models.
 

redkamel

macrumors 6502
Aug 29, 2006
437
34
Apple has been planning this for a long time and with touchID they got a big piece of the puzzle.

They could easily go the paypal/square route. "Just a small fee (for the merchant) to use your iPhone instead of your wallet!". Not to mention the Apple version would be simple, secure, locked down and trusted (unlike anything involving Android and open systems) and have the halo of fingerprint security. Credit card companies would love it.

All they have to do is make "Passbook" into "wallet"

Once it is successful and widely adopted, and Apple understands the system, I would hope they would go for the gold and the option the credit card companies never saw. Connect your bank account directly and charge a lower fee than a credit card to the merchant, i-points for the customer (to buy songs etc) and cut the credit card companies out of a ton of transactions.

Thats what I would do, at least.
 

BvizioN

macrumors 603
Mar 16, 2012
5,701
4,819
Manchester, UK
It's obsolete if you want to use the features or software that only works, or only provides the best experience, on the newest model. If you don't need that, enjoy the older models.

By definition obsolete means no longer produced or used; out of date. To be fair, an older version of iPhone is neither. Just because you can't get the full experience of a much newer hardware/software does not make that product obsolete. Now if Apple would stop supporting it with the software updates, that would be an obsolete product.

And apologies for slipping out of topic.
 

numlock

macrumors 68000
Mar 13, 2006
1,590
88
People are still using iPhone 4 and 4s. There is people still using original iPad, heck even iPhone 3G! And they are still loving it. How is that obsolete? And please, how is obsolete over a year old iPhone 5 for example? Oh right, it does not have touch ID :rolleyes:

if i restore a 3g what apps in the app store work on it? (honest question)

just because someone is making use of something dosent mean anything with regards to apples service. for instance the lack of adding additional memory to an older device does limit it quite a bit moving forward.

lets just see what limitations will come for the iphone 5 next fall.

but if this story is really true then i despair for apple. they are becoming the anti steve jobs. going into every field they smell a profit yet dont care enough to be the best in any of them.
 

osx11

macrumors 6502a
Jan 16, 2011
825
0
For what? Is there a mobile payment service that's cornered the market?

Ever heard of PayPass by Master Card?

Many countries in Europe have this in all their debit cards since last year.

I know in Austria, for example, all newly issued debit cards have this NFC tech and in 2015, every debit card will be renewed and incorporate this technology. Over 8500 stores already have this and this is expanding quickly. It allows you to make payments which are less than €25 by simply placing your card on a sensor. You can make four or five payments before it will ask you for your pin code, at which point you can use the card another four to five times. This is already here. Anything Apple does, because of iPhone exclusivity, can never really take off. Maybe if it uses some open standard, but stores are not going to install pay systems for iPhone users. Maybe in the US, but certainly not world wide.
 

BvizioN

macrumors 603
Mar 16, 2012
5,701
4,819
Manchester, UK
if i restore a 3g what apps in the app store work on it? (honest question)

I am not using one, but I assume everything that worked before still works (just not updated to take the advantage of the latest iOS) However, you got 3 and and a half years old phone (iPhone 4) that is till being supported by the latest version of iOS! Limited, yes! You can't seriously expect almost 4 year old hardware to work buttery smooth on the latest iOS that has been designed to take advantage of the latest technology.
 

The Phazer

macrumors 68030
Oct 31, 2007
2,997
929
London, UK
I don't think Apple has a hope in this market.

(And I'm somewhat thankful for that, what with their history of deciding what I should spend my money on.)
 

numlock

macrumors 68000
Mar 13, 2006
1,590
88
I am not using one, but I assume everything that worked before still works (just not updated to take the advantage of the latest iOS) However, you got 3 and and a half years old phone (iPhone 4) that is till being supported by the latest version of iOS! Limited, yes! You can't seriously expect almost 4 year old hardware to work buttery smooth on the latest iOS that has been designed to take advantage of the latest technology.

no i mean a fresh restore. what apps can i download if and when i get bored of calculator and notes. btw i just tried a few from the free section in the top 25 and got responses that the phone was unsupported and i needed ios5.

considering that the iphone 4 gets its precious space hijacked by apple and runs so so on ios7 how well would you say that device is supported?

working "buttery smooth" on the latest ios is totally at the other end of the spectrum to the reality that apple creates and there is plenty of room in between.
 

BvizioN

macrumors 603
Mar 16, 2012
5,701
4,819
Manchester, UK
considering that the iphone 4 gets its precious space hijacked by apple and runs so so on ios7 how well would you say that device is supported?

How well do you want over a 3 year old hardware to be supported on the latest operating system? I seriously don't know what makes you think that a nearly 4 year old hardware would run it's operating system anywhere remotely close to how the latest hardware handles it, or you would be able to do on it pretty much everything you do on the latest. Technology does age too you know.
 
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