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Apple in Talks With Credit Card Companies Over Payment Solution, Could Launch Mobile 'Wallet' This Fall

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Apple's talks with companies in the payment industry have been heating up in recent months, according to a new report from The Information. Apple executives have discussed launching a mobile payment solution as soon as this fall, allowing users to pay for physical goods with their iPhones.

Apple is currently speaking with credit card company Visa over a possible partnership, a move that would bypass third-party payment processors resulting in direct savings for retailers and customers.

Apple's payment solution is said to work with a "secured element" within the iPhone, safely storing payment credentials. This secured solution may involve the "Secure Enclave" built into Apple's A7 processor.
Apple has told some partners its system would involve a so-called secured element in the phones--a piece of hardware where sensitive information such as a phone owner's financial credentials can be stored. The company also aims to run the system without giving up any control to wireless carriers.
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The Secure Enclave, which was designed for Touch ID, is a coprocessor within the A7 chip that uses a secure boot process to ensure that its separate software is both verified and signed by Apple. It functions independently even if a kernel is compromised and contains a unique ID that is inaccessible to other parts of the system, keeping all data held within safe.

Apple's interest in the mobile payment arena has been rumored for years, but gained renewed attention earlier this year when The Wall Street Journal suggested the company as working on a new mobile payment service. As previously detailed, the service is said to allow people to use their iOS devices to make purchases for physical goods in apps and on the web, as well as in retail stores.

The payment solution will most likely be built around iTunes, allowing Apple to leverage more than 800 million iTunes accounts, most with credit cards attached. It may also be tied to Touch ID, the fingerprint scanning home button built into the iPhone 5s and slated for inclusion in future iPads and iPhones.

In January, Apple CEO Tim Cook said that mobile payments were "one of the thoughts" behind Touch ID. He has also said that Apple is "intrigued" with mobile payments and noted there's a "big opportunity on the platform."

Earlier this year, Apple was said to be in talks with Paypal about a possible partnership and it has also sought out senior payments industry executives to take on roles within the company.

Article Link: Apple in Talks With Credit Card Companies Over Payment Solution, Could Launch Mobile 'Wallet' This Fall
 
Article Link
https://www.macrumors.com/2014/07/23/mobile-wallet-this-fall/
C

Cougarcat

macrumors 604
Sep 19, 2003
7,766
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But, will it be faster than just swiping my card? If I have to muck about with the UI on my phone, I see little point.
 
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iGraham4

macrumors member
Nov 30, 2010
38
64
If it is announced with iPhone 6 then I would assume it would have some new hardware (NFC?) otherwise why not announce it at WWDC if it is going to work with the iPhone 5s i.e. bluetooth + A7 secure enclave + Touch ID?
 
C

Cougarcat

macrumors 604
Sep 19, 2003
7,766
2,553
iGraham4 said:
If it is announced with iPhone 6 then I would assume it would have some new hardware (NFC?) otherwise why not announce it at WWDC if it is going to work with the iPhone 5s i.e. bluetooth + A7 secure enclave + Touch ID?
Click to expand...

Because they are still in talks with credit card companies, and it might not be ready. I really don't think they will go in the NFC direction.
 
B

Bjb568

Guest
Nov 18, 2012
17
0
Cougarcat said:
But, will it be faster than just swiping my card? If I have to muck about with the UI on my phone, I see little point.
Click to expand...

Best case: The data is sent over bluetooth and pops up on the lock screen, all you have to do is use Touch ID to authenticate.
 
N

newagemac

macrumors 68020
Mar 31, 2010
2,091
23
Yosemite. iOS8. Handoff and Continuity. Healthkit. Homekit. TouchID. Mobile Payments. iWatch??? Apple TV???

Apple's entire integration plan seems to finally all be coming together. It's going to be really nice to be in the Apple ecosystem going forward.
 
S

suprakc

macrumors regular
Jun 15, 2013
110
3
Utah
If it could bypass 3rd party payment solutions, then that would be truly great tech. But credit card companies would still charge Apple... so fees would seemingly remain for the vendor. Interesting.
 
S

SHNXX

macrumors 68000
Oct 2, 2013
1,901
663
i wonder what this will do for bitcoins.

apple has in the past not taken a favorable view of bitcoins.
 
Piggie

Piggie

macrumors G3
Feb 23, 2010
9,117
4,016
Do you think Apple would want to get some money for each transaction?
 
C

ChrisA

macrumors G5
Jan 5, 2006
12,572
1,684
Redondo Beach, California
Mobile payments make sense on a watch too. Maybe more sense because a watch can "know" if it is strapped to the legal owner's wrist using biometrics.

I don't see how a phone is better than a credit card

In my idea scenario you don't stop at the checkout stand. You just walk into Home Depot or WalMart and take what you need and the store's sensors see that you have an account and make a charge. The watch could serve as id ID for the account and it could be rigged so it ONLY works if the legal owner is using it.

We have to be carful to NOT be like Henry Ford's customers who would only ask for a faster horse.
 
F

flatfoot99

Guest
Aug 4, 2010
521
0
so im guessing it will work at places already accepting visa? visa, apple and whatever credit card you have on file on itunes are all gonna want a cut.
 
Patriot24

Patriot24

macrumors 68030
Dec 29, 2010
2,813
805
California
ChrisA said:
In my idea scenario you don't stop at the checkout stand. You just walk into Home Depot or WalMart and take what you need and the store's sensors see that you have an account and make a charge.
Click to expand...

What you are describing has been dreamed of for a long time. Apparently it is within reach with current tech:

http://www.rfidarena.com/2014/5/15/...-with-technology-that-is-available-today.aspx

I agree that Apple's goal, if they are going to enter this arena, is to revolutionize the checkout process in total rather than simply providing another payment avenue.
 
HobeSoundDarryl

HobeSoundDarryl

macrumors G5
Feb 8, 2004
12,221
15,593
Hobe Sound, FL (20 miles north of Palm Beach)
Cougarcat said:
But, will it be faster than just swiping my card? If I have to muck about with the UI on my phone, I see little point.
Click to expand...

There's a HUGE security benefit to going this way instead of continuing to use cards. Nutshell version: as is, much of the time, we hand our credit cards to complete strangers who then go away where we can't see them to process our purchase. They bring back a piece of paper that we sign, so we give those strangers our signature too.

Mobile "card-less" model: nothing leaves your possession. Your "card" (your phone) has something brought to it so that you can establish the connection to approve the transaction yourself. Your thumbprint or password is the replacement for your signature. The "stranger" doesn't get to see a card number, name, expiration date, security code or your signature; they just get a "transaction approved" validation.

While the latter is also not completely secure (nothing is), it would be a HUGE step toward reducing the ability for the less sophisticated identity thieves (which is most of them) to fake a transaction(s) as you.

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Robin4 said:
What happens if someone steals the iPhone. Are the iPhones so secure with the new technology?
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They need to steal your thumb and/or your password too.
 
F

flatfoot99

Guest
Aug 4, 2010
521
0
HobeSoundDarryl said:
There's a HUGE security benefit to going this way instead of continuing to use cards. Nutshell version: as is, much of the time, we hand our credit cards to complete strangers who then go away where we can't see them to process our purchase. They bring back a piece of paper that we sign, so we give that strangers our signature too.

Mobile "card-less" model: nothing leaves your possession. Your "card" (your phone) has something brought to it so that you can establish the connection to approve the transaction yourself. Your thumbprint or password is the replacement for your signature. The "stranger" doesn't get to see a card number, name, expiration date, security code or your signature; they just get a "transaction approved" validation.

While the latter is also not completely secure (nothing is), it would be a HUGE step toward reducing the ability for the less sophisticated identity thieves (which is most of them) to fake a transaction(s) as you.

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They need to steal your thumb and/or your password too.
Click to expand...
bingo! cant wait for this!
 
HobeSoundDarryl

HobeSoundDarryl

macrumors G5
Feb 8, 2004
12,221
15,593
Hobe Sound, FL (20 miles north of Palm Beach)
Piggie said:
Do you think Apple would want to get some money for each transaction?
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Absolutely. I suspect there's no bigger business than the credit/debit fee leeching business. Go into any city and the biggest buildings are almost always owned by those in that business. Getting a little "commission" on every transaction is HUGE… much better than selling a small segment of people a new Mac or even a ton of people a new iPhone.
 
The Barron

The Barron

macrumors 6502a
Mar 5, 2009
857
1,080
Central California Coast
Surprises are Great

iGraham4 said:
If it is announced with iPhone 6 then I would assume it would have some new hardware (NFC?) otherwise why not announce it at WWDC if it is going to work with the iPhone 5s i.e. bluetooth + A7 secure enclave + Touch ID?
Click to expand...

I think this would hit it out of the park for Apple to have the NFC feature and it not have been leaked prior to the new iPhones.

It would certainly be great for the shareholders of AAPL. Oh, yeah! :apple:

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Piggie said:
Do you think Apple would want to get some money for each transaction?
Click to expand...

Never. Hah! :D
 
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