7 Parts of Apple's Big Plan for Payments
Published September 5, 2014 9:19 AM
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Updated October 20, 2016 10:36 AM
1 Min Read
Angel Navarrete/Bloomberg
The unveiling of the next iPhone is imminent, and with it Apple is expected to announce plans for a mobile payment system with the support of the major card networks, retailers and banks. This wallet might even extend beyond mobile to wearables and other devices. But what, exactly, would go into such a system? (Image: Bloomberg News)
NFC
Apple has never released an iPhone with Near Field Communication capabilities, but that may be about to change. Reports indicate that NFC, a technology already used by Google Wallet and Softcard, is also a component of Apple's plans in the U.S. and China . (Image: ShutterStock )
Network Effect
Apple's plans for in-store payments will reportedly rely on deals with Visa, MasterCard, American Express and various retailers and card issuers. This suggests the company might have a nonstandard approach to contactless payments, requiring the buy-in of major financial companies and merchants. (Image: ShutterStock )
Strengthened Security
Despite its brand strength, Apple is facing severe scrutiny over how it protects personal data in the wake of the leaks of celebrity nude photos stored in its iCloud service . It may shore up security with tokenization technology from Visa and MasterCard and Apple's own TouchID fingerprint system. (Image: ShutterStock )
iWatch
Apple is also expected to announce a smartwatch, joining the many companies betting on wearable computing. This device is reportedly equipped with an NFC chip , making it possible that the watch could support payments. (Image: ShutterStock )
iTunes
Apple has boasted of its payment strength - the many credit cards tied to its 800 million iTunes accounts . An Apple mobile wallet would likely build upon this userbase. (Image: ShutterStock )
Family Sharing
Unveiled in June, Apple's upcoming "Family Sharing" feature lets users share a credit card account among up to six family members, which also lets them share content purchases across devices. The system also enables parental controls. (Image: ShutterStock )
Brent Lewin/Bloomberg
Patent Potential
Apple's plans for payments go beyond hardware. The numerous patents Apple obtained over the years describe methods for integrating rewards, advertising, ticketing and authentication. (Image: Bloomberg News)
