The iOS universe has a single, absolute ruler—Apple. The decisions it makes shapes how other players in this universe—app developers, accessory makers, service providers—act. Contrast this to the Android Universe, where Google is more akin to the chairperson of a raucous coalition than its unquestioned leader. Both models have their pros and cons. However, when it comes to establishing new standards that require speedy and comprehensive adoption to work, Apple’s model wins.
When Google launched its Google Wallet app, one of the key reasons for its failure was the resistance it faced from mobile carriers who were unwilling to allow Google access to its secure element, where payment credentials are stored on the phone. Google also failed to find uptake among merchants who simply didn’t see the value of enabling a new form of payment at the POS that would require both significant investment in time and capital, when few people even had access to the app.
Contrast this with Apple’s position as the ruler of iOS, no carrier would even think of upsetting the folks at Cupertino in a similar way. Furthermore, as millions of iPhone users upgrade to the next version of the phone, merchants would immediately see the value in enabling contactless NFC-enabled payments. Payments Source reports that Apple has already made agreements with leading credit card networks like Via, Mastercard, and American Express, in addition to a number of banks and retailers.
According to the Payments Source article, “Apple Inc. plans to turn its next iPhone into a mobile wallet through a partnership with major payment networks, banks and retailers, according a person familiar with the situation.
“The agreement includes Visa Inc., MasterCard Inc. and American Express Co. and will be unveiled on Sept. 9 along with the next iPhone, said the person who asked not to be identified because the talks are private.
“The new iPhone will make mobile payment easier by including a near-field communication chip for the first time, the person said. That advancement along with Touch ID, a fingerprint recognition reader that debuted on the most-recent iPhone, will enable consumers to securely pay for items in a store with the touch of a finger.”
Overview by Nikhil Joseph, Analyst, Emerging Technology Advisory Services
To read the full story, go to Payments Source.
