Apple Considering BOKU (Mobile Payment Company) Acquisition

[MacRumors]

TechCrunch reports that both Apple and Google are in early talks with mobile payments company Boku. Boku is a startup company that has partnered with mobile carriers to allow customers to purchase goods using their mobile phones.

Customers simply enter their mobile phone number when looking to purchase an item and a confirmation message is sent to their device. The resulting charges are then added to your wireless monthly bill. It would eliminate the need for the use of credit cards for online transactions. According to Boku, their carrier partnerships allow them to service over 1.6 billion customers worldwide. In the U.S., all the major carriers (including AT&T) are listed.

Discussions are described in the early stages, but possible acquisition prices are in the 9-figure range:

It’s too early to tell. But like the AdMob purchase, a potential M&A deal would involve a transaction for a nine-digit sum according to one source. We are unable to pinpoint an exact price at this stage of the negotiations, but our source says Apple, for one, could end up spending at least $250 million (and up to $450 million) to acquire BOKU.

Article Link: Apple Considering BOKU (Mobile Payment Company) Acquisition

 

[bwillwall]

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First. And idk about this I use eBay and it would be nice if they just partnered with paypal

 

[iWonderwhy]

Even a $250 million purchase price would only be a small dent into Apple's $50 billion cash reserves.


No kidding.

 

[jav6454]

Cash or check... I think they will go with Credit Card purchase to earn miles and/or points. However, the concept of Boku is awesome. So long the threat of having my CC number stolen. Not that it has been; thanks you PayPal.

 

[rwilliams]

This could be interesting, but I'm not sure how I feel about not paying for a product "up front", and instead paying for it when the AT&T bill comes. As a person who's good with his money, I wouldn't have a problem with that, but I could see a lot of people running into problems with this.

 

[Wurm5150]

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Great another company will get grossly overpaid and overvalued..

 

[gatearray]

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First. And idk about this I use eBay and it would be nice if they just partnered with paypal

Hmmm... If by "they" you mean Apple (hard to tell from your post) partner with PayPal, then I would have to disagree.

Even though convenient, PayPal is such a terrible company for the consumer and their stranglehold quasi-monopoly on Internet payments is a bad thing. Also, the way that eBay forces their customers to use PayPal, which eBay purchased in 2002 for $1.5 billion, should be against the law, too.

 

[Yvan256]

1. Apple buys Boku
2. Apple makes the payment system available to 3rd parties
3. We finally get a world-wide alternative to PayPal

At least that's what I'm hoping for.

 

[Jakeoster]

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I wouldn't mind a paypal alternative. To be honest paypal us kind of clunky.

 

[jav6454]

1. Apple buys Boku
2. Apple makes the payment system available to 3rd parties
3. We finally get a world-wide alternative to PayPal

At least that's what I'm hoping for.

If only, it'd be integrated with iPhone OS devices only and make strong presence in Macs. Perhaps a cloud approach? After all, a $1 Billion data center has to have it's uses.

 

[cxny]

Wow, those are going to be some huge phone bills! Amazing that a pay-by-phone App hasn't already taken off. In Italy (& many places) you've been able to use a cell phone to buy train tickets for years. Just show the conductor a text confirmation; paperless & convenient.

 

[Ciclismo]

Cash or check... I think they will go with Credit Card purchase to earn miles and/or points. However, the concept of Boku is awesome. So long the threat of having my CC number stolen. Not that it has been; thanks you PayPal.

A guy I know bought an Aston Martin DBS on his credit card because he got enough miles for two first class return tickets from NZ to the UK. Better than paying the $5 fee for a bank cheque.

I like the concept of Boku too, as it is easier to nick someones phone than their credit card. Do it on a Friday night while they're drunk and you can spend spend spend until they are sober enough to remember all the details they need to have their phone blocked.

 

[pika2000]

What? Being tied to carriers even more? No thanks. Why should it be tied to the carriers in the first place? Apple already have my credit card number. Instead of a phone number, how about simply my Apple ID/MobileME ID? Enough with carriers-tie-in already.

 

[Tom J]

You forgot #4

4. My wireless bill will have fraudulent charges that my carrier won't help me resolve.

 

[pika2000]

You forgot #4

4. My wireless bill will have fraudulent charges that my carrier won't help me resolve.

I can see the carriers drooling over this. Imagine the extra money they could make if people don't pay attention to their bills (eg. small charges like $1 or $2).

 

[darwen]

Why didn't anyone else think of that? That seems like such a no brainer idea. Someone is about to become very happy, and frankly, they deserve it. Absolutely genius.

 

[Mac Kiwi]

1. Apple buys Boku
2. Apple makes the payment system available to 3rd parties
3. We finally get a world-wide alternative to PayPal

At least that's what I'm hoping for.

That would be brilliant.


I am guessing Google will not let Apple win easily mind you.....If they do get to win that is.

 

[Yvan256]

That would be brilliant.


I am guessing Google will not let Apple win easily mind you.....If they do get to win that is.

I'm also hoping that Apple puts the requirements into either a cellphone number or an iTunes account. Not everyone has/wants a cellphone.

 

[jeznav]

1. Apple buys Boku
2. Apple makes the payment system available to 3rd parties
3. We finally get a world-wide alternative to PayPal

At least that's what I'm hoping for.

Just in time for iPhone 5 with an integrated Near Field Communication or RFID scanner.

 

[Carlanga]

are we expecting then a 30% fee w/ Boku if buys it

 

[babyj]

Did anyone else check out the fees that BOKU charge? They state 35% on their website, which compares pretty poorly to credit card companies charging no more than 5% (or about 20p for a debit card). As a result this form of payments will most likely have very limited appeal and be used solely for very high margin sales, most likely services with low overheads.

Can't see any good reason why Apple would pay in the hundreds of millions for a business that will offer them very little. They already have a relationship with the majority of mobile carriers and a massive number of customers credit card details (as Steve Jobs has pointed out a number of times).

Most likely just another rumour started randomly by some analyst. When Apple make their next acquisition the first we'll hear about it is some time after the deal is signed and sealed.

 

[Rocketman]

are we expecting then a 30% fee w/ Boku if buys it

That will be an improvement because their fee is currently 35%! Some goes to them and some to the carrier.

Boku overhead. Neither Boku nor the carrier are doing any marketing or merchandising, just payment processing, so that is usary.

Rocketman

 

[NicoleRichie]

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This could be very interesting if it happens. Many other things they could do with it.

 

[URFloorMatt]

I can see the carriers drooling over this. Imagine the extra money they could make if people don't pay attention to their bills (eg. small charges like $1 or $2).

Verizon's been doing this (in limited fashion, anyway) for years. It's called VCast.

 

[Rajani Isa]

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First. And idk about this I use eBay and it would be nice if they just partnered with paypal

Hope not - either Apple or Boku. Paypal needs to die, at least as it currently is. It is a service that, even with the purchasers having issues that they due, that automatically condemns the sellers in ANY dispute. Quite frankly, as a seller you would probably have issues winning a dispute if the Dalai Lama hand delivered his affidavit supporting your as the seller.

I can see the carriers drooling over this. Imagine the extra money they could make if people don't pay attention to their bills (eg. small charges like $1 or $2).

You would have some serious issues, then - the service requires you to accept the charge via text from your phone. For them to rack up such charges on your account, they would either have to somehow clone your phone or have one of yours without you noticing it is gone.