Apple set to take on PayPal, building its own mobile payment system

Saturday, 25 January 2014 - 1:30pm IST Updated: Saturday, 25 January 2014 - 2:12pm IST | Place: Mumbai | Agency: DNA Web Team
No confirmation from Apple has been received yet, but it is rumored that with this service in place, users will be able to buy products not just from Apple stores but other stores too.

The day is not far when you can actually buy whatever you see on your iPhone. According to Wall Street Journal, Apple is reportedly working on a mobile payment service which means users can pay for physical goods using iOS mobile devices via their existing iTunes accounts.

No confirmation from Apple has been received yet, but it is rumored that with this service in place, users will be able to buy products not just from Apple stores but other stores too.

The report by the publication also confirms that Apple has been toying with the idea for quite a while now. In 2012, Apple reportedly nearly launched a mobile payment system but changed their mind last minute due to internal difference of opinion.

The company was concerned about the potential battery life drain of near-field communication (NFC) tech, and marketing VP Phil Schiller feared that people would blame Apple if they had a bad experience with a merchant.

All of these points reflect on the amount the company spends on research and development. Recently, Apple launched Touch ID with the iPhone 5s and iBeacon with the new iOS 7.

Apple also just recently filed for a new patent that would allow its devices to securely store payment information, and therefor purchase goods and services in a way that doesn’t compromise on any sensitive user data.

All of these strategic moves now make sense with Apple's future plans to get into e-commerce heavily with this new service.

Most common name that come to mind when you think about mobile payments is PayPal, Square and Isis. Will Apple be able to beat them at their own game?


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