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MacRumors

macrumors bot
Original poster
Apr 12, 2001
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Tim Cook was asked during today's earnings call about his feelings regarding the mobile payments market. While he didn't address the topic directly, he did note that the mobile payments were "just getting started" and still "in its infancy."

In a different part of the call, Cook said Apple would continue to augment the existing "iTunes ecosystem with new services and make existing ones even better."

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There have been persistent rumors for several product cycles that the iPhone would gain some sort of mobile payments system, perhaps through near field communications (NFC). Passbook, the system that Apple released last year to make it more convenient for customers using gift card or ticketing apps, could be a precursor to a larger mobile payments play by the company.

Apple already has a mobile payments system of sorts, allowing Apple Retail Store customers to self-checkout with the Apple Store app. The company has hundreds of millions of credit card numbers stored in its iTunes system, providing a natural groundwork for a possible future payments system.

Article Link: Tim Cook on Mobile Payments: 'It's In Its Infancy'
 

3282868

macrumors 603
Jan 8, 2009
5,281
0
Tim Cook has been making a lot of statements recently. I'm a bit surprised with this announcement, given that Apple was (rumored) to be releasing NFC but backed out when credit companies refused their terms in taking a percentage of NFC sales.

NFC has been around for a long time in Japan, E.U., etc. and is used for more than payments. Infiniti is releasing all new vehicles lines this summer, and NFC will be implemented as an option for locking/unlocking doors, drivers' settings, etc. It's more secure than "blink" systems. Dateline (and other security experts) have shown it is easy to steal credit card data from "blink" cards. Readers are available online for ~$100, place one in a carry wallet and wave it near someone's purse or wallet. Copy that data onto something as simple as a hotel key, make a purchase (in one case, a couple thousand dollar purchases) and no one checked to verify the card. NFC is much more secure with a short transmit range.

NFC might be "in its infancy" in North America, but it has been around for a long time in many countries.
 
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daneoni

macrumors G4
Mar 24, 2006
10,807
79
Basically everything Cook said today was 'not yet but eyes still peeled'
 
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Stella

macrumors G3
Apr 21, 2003
8,609
5,569
Canada
As it stands Passbook is somewhat of a failure with extremely limited support.

The sooner mobile payments becomes mature the better. Without NFC I can't see how things can progress much on the iPhone.

Android has / will have Mastercard support with NFC.
 
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zippy7

macrumors newbie
Nov 30, 2012
4
0
Tim Cook has been making a lot of statements recently. I'm a bit surprised with this announcement, given that Apple was (rumored) to be releasing NFC but backed out when credit companies refused their terms in taking a percentage of NFC sales.

NFC has been around for a long time in Japan, E.U., etc. and is used for more than payments. Infiniti is releasing all new vehicles lines this summer, and NFC will be implemented as an option for locking/unlocking doors, drivers' settings, etc. It's more secure than "blink" systems. Dateline (and other security experts) have shown it is easy to steal credit card data from "blink" cards. Readers are available online for ~$100, place one in a carry wallet and wave it near someone's purse or wallet. Copy that data onto something as simple as a hotel key, make a purchase (in one case, a couple thousand dollar purchases) and no one checked to verify the card. NFC is much more secure with a short transmit range.

NFC might be "in its infancy" in North America, but it has been around for a long time in many countries.


I do believe the article was talking about 'mobile payments' not NFC in general. A product could use NFC to do some of the things you mentioned, yet not be used for mobile purchases.
 
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Bubba Satori

Suspended
Feb 15, 2008
4,726
3,753
B'ham
Apple should create a bank

They then should f over visa and MasterCard with their own payment system

Apple should just buy the Federal Reserve and print their own iMoney
and f over Americans more than Bernanke is. Magic. :apple:
 
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needfx

Suspended
Aug 10, 2010
3,931
4,241
macrumors apparently
nfc & fingerprint scan

we're talking about a whole new level of security issues where your stolen iphone will be escorted by your severed thumb or index finger
 
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nikicampos

macrumors 6502a
Jul 23, 2011
816
329
Tim Cook has been making a lot of statements recently. I'm a bit surprised with this announcement, given that Apple was (rumored) to be releasing NFC but backed out when credit companies refused their terms in taking a percentage of NFC sales.

NFC has been around for a long time in Japan, E.U., etc. and is used for more than payments. Infiniti is releasing all new vehicles lines this summer, and NFC will be implemented as an option for locking/unlocking doors, drivers' settings, etc. It's more secure than "blink" systems. Dateline (and other security experts) have shown it is easy to steal credit card data from "blink" cards. Readers are available online for ~$100, place one in a carry wallet and wave it near someone's purse or wallet. Copy that data onto something as simple as a hotel key, make a purchase (in one case, a couple thousand dollar purchases) and no one checked to verify the card. NFC is much more secure with a short transmit range.

NFC might be "in its infancy" in North America, but it has been around for a long time in many countries.

For it to work well, every store in the USA would have to invest/buy/change their payment terminals to NFC, so yes, the mobile payments are "just getting started."

Not to say worldwide, most countries don't even know about it, and no, I'm not going to buy an Infinity just because it has NFC, out of the top 50 cars manufacturers only one is starting to use it, so yes, it still "in its infancy."

So if Apple decides not to use a product (NFC) that will only serve less then 1% of their customer that's fine by me..
 
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Pakaku

macrumors 68020
Aug 29, 2009
2,408
2,742
NFC might be "in its infancy" in North America, but it has been around for a long time in many countries.

But if you take a look at Apple's track record with serivces outside the US... maybe 'infancy' is a suitable term after all, lol.
 
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tech4all

macrumors 68040
Jun 13, 2004
3,399
489
NorCal
For it to work well, every store in the USA would have to invest/buy/change their payment terminals to NFC, so yes, the mobile payments are "just getting started."

Not to say worldwide, most countries don't even know about it, and no, I'm not going to buy an Infinity just because it has NFC, out of the top 50 cars manufacturers only one is starting to use it, so yes, it still "in its infancy."

So if Apple decides not to use a product (NFC) that will only serve less then 1% of their customer that's fine by me..

Other uses for NFC than just payment options...
 
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3282868

macrumors 603
Jan 8, 2009
5,281
0
For it to work well, every store in the USA would have to invest/buy/change their payment terminals to NFC, so yes, the mobile payments are "just getting started."

Not to say worldwide, most countries don't even know about it, and no, I'm not going to buy an Infinity just because it has NFC, out of the top 50 cars manufacturers only one is starting to use it, so yes, it still "in its infancy."

So if Apple decides not to use a product (NFC) that will only serve less then 1% of their customer that's fine by me..

Why do you believe it to be such a low percentage? I'm genuinely curious.

M.C. and Visa were about to deploy NFC pay systems before the iPhone 5 release. As some stated, it isn't much money to invest in systems given the RoI once those systems are deployed with millions using that specific tech. Last year, MasterCard exec Ed McLaughlin made comments that hinted in the next iPhone utilizing NFC.

Will the iPhone 5 Have NFC? MasterCard Exec Hints at an Answer

"I don't know of a handset manufacturer that isn't in process of making sure their stuff is PayPass ready," McLaughlin said. When asked if that included Apple, he stumbled: "Um, there are...like I say, [I don't know of] any handset maker out there. Now, when we have discussions with our partners, and they ask us not to disclose them, we don't."

From my understanding through my friends in Cupertino, a few iPhone 5 prototypes had NFC. However, talks between credit companies fell flat when Apple demanded a percentage of all NFC transactions. Passbook was set to implement NFC. Sadly, Apple released a non-NFC device (it wasn't due to a lack of tech or room for transmitters in the current iPhone 5 since prototypes with NFC tech were slightly modified for use).

As for Infiniti using NFC, certainly it is not the only reason for purchasing a vehicle. I merely stated the tech has progressed enough outside North America that car manufacturers are investing in it. Tech in vehicles is rather inexpensive comparatively. I have an Infiniti and I am interested in the investments and changes a successful company such as Nissan/Infiniti makes in their product line.

Lastly, MasterCard has recently proposed using phones to pay for transportation:

MasterCard - NFC invades Mobile World Congress

MasterCard's new proposal would allow bus and train riders to use their smartphones to pay for their fare using a bar code printed at the bus top. The thought is that riders would do this while waiting for the next transport, then get on the vehicle, bump a sensor, and enjoy (or depending on the city, not enjoy) their ride.

NFC seeps into bloodstream of Mobile World Congress

BARCELONA, Spain--NFC (near field communication) technology has been around for some time now, but as of yet it's failed to hit a level of ubiquity in our devices that would galvanize more businesses to adopt it. That, however, is changing fast.

Very interesting article, I highly recommend reading it.
 
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SchneiderMan

macrumors G3
May 25, 2008
8,332
199
I use a plastic card to pay for nearly everything I purchase. Should I take out my iPhone or my plastic card which is accepted in more places than mobile payments? Hmmm...
 
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Mackan

macrumors 65816
Sep 16, 2007
1,375
48
In other words, let's milk it all we can before we introduce yet another upgrade to all existing owners!

Yeah, pretty much. I am surprised he actually can live with himself, from a moral perspective. Spewing out borderline lies and ******** year after year, when most people know their goal is just to milk money.

But I guess it's pretty easy for him, after all.
 
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snebes

macrumors 6502a
Apr 20, 2008
800
661
As it stands Passbook is somewhat of a failure with extremely limited support.

The sooner mobile payments becomes mature the better. Without NFC I can't see how things can progress much on the iPhone.

Android has / will have Mastercard support with NFC.

Not exactly Apple's fault here. The economy sucks. The retailers don't want to invest in new scanner technology to support either Passbook (reading barcodes on screens) or NFC readers. We can only hope this will get better with time, but it may only happen in smaller companies / new locations.

How many registers does Walmart or Target have? How many actual scanners? Tens of thousands each chain. Where is the technical support to back them, connect that data to their databases, etc? For both of these technologies, it is an uphill battle in the US.

----------

I use a plastic card to pay for nearly everything I purchase. Should I take out my iPhone or my plastic card which is accepted in more places than mobile payments? Hmmm...

Food for thought...

Assuming every place even takes plastic. Taco Bell only started in 2006, other chains around then too. Isn't that the appeal for NFC, the small transactions too?
 
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NedBookPro

macrumors 6502
Feb 13, 2011
334
0
No, mobile payment is alive and well on other operating systems and in other countries. Apple is again behind.

That's right. NFC payments alive and well, and certainly NOT in it's infancy here in Australia. Paywave and Tap & Go from Visa and Mastercard available almost everywhere at major retailers, supermarkets and petrol (gas) stations.

Apple need to get with the times.

.
 
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macman34

macrumors regular
Apr 13, 2013
174
0
While Tim never really has anything that insightful to say at least he is not an embarrassment to apple, which is what Phil Schiller is when he open his trap.
 
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