iPhone 6 could bring Visa mobile payments

The iPhone 6 could bring Visa mobile payments to Apple users

Visa

Apple and Visa could be joining together to offer mobile payments to iPhone 6 users, Pacific Crest Securities reported in a research note.

The move would put the resulting service in direct competition with eBay's PayPal. Visa recently launched Visa Checkout' to be used by customers online and via an app on mobile devices, as well as investing in startup LoopPay, another mobile payments service.

Predicting an imminent announcement of Apple and Visa's partnership, Pac Crest analyst Josh Beck said: "We expect the iPhone 6 to be launched with near-field communications (NFC) and secure element technologies, which would provide Apple with a broad technology portfolio to disrupt mobile payments.

"After analysing the payments, handset, enabling technology and internet landscape, we think a partnership between Apple and Visa would make strategic sense and believe an announcement could happen as early as this fall," he continued.

The joining together of Apple and Visa was previously predicted earlier in the year, would seem them entering a market that includes potential players like Amazon.com, Wal-Mart's MCX and AT&T, Verizon Communications and T-Mobile US's Isis.

"Visa's recent product announcements, most notably a new token service, could lower security hurdles that have hampered previous mobile payment projects. Visa's new tools provide a clearer path for Apple to become a major player in mobile payments, but we still see relatively little opportunity to generate profits that would be meaningful at Apple's scale," Beck added.

"For eBay, we see risk of increasing competition in e-commerce payments and think if Apple launches a mobile payment solution, it could hurt investor sentiment."

EE recently confirmed that commuters in London will now be able to use their smartphones to pay for buses via its contactless mobile payments system. Users will need to be signed up to EE's mobile network and own a Cash on Tap enabled smartphone.

The service will be rolled out to the London tube network, DLR and Overground train network from 16 September.

Contactless payment is quickly gaining popularity, with consumers using contactless card payments in 19.7 million transactions around the UK in May 2014, according to research from Visa Europe. It also revealed an 18 per cent rise in the number of people using their cards for contactless payments between April and May.

Mark Austin, director of contactless at Visa Europe, said: "[This is] driven by increased consumer awareness, the commitment of UK banks to issue Visa contactless cards and UK retailers activating contactless terminals."

Featured Resources

BIOS security: The next frontier for endpoint protection

Today’s threats upend traditional security measures

Download now

The role of modern storage in a multi-cloud future

Research exploring the impact of modern storage in defining cloud success

Download now

Enterprise data protection: A four-step plan

An interactive buyers’ guide and checklist

Download now

The total economic impact of Adobe Sign

Cost savings and business benefits enabled by Adobe Sign

Download now

Recommended

The 8th-generation iPad debuts with the A12 Bionic chip
tablets

The 8th-generation iPad debuts with the A12 Bionic chip

15 Sep 2020
iPad Air 2020 debuts with A14 Bionic chip and USB-C
tablets

iPad Air 2020 debuts with A14 Bionic chip and USB-C

15 Sep 2020
Broadcom chip shipments indicate delayed iPhone 12 launch
Hardware

Broadcom chip shipments indicate delayed iPhone 12 launch

4 Sep 2020
Apple delays iOS 14 privacy changes after Facebook pressure
privacy

Apple delays iOS 14 privacy changes after Facebook pressure

4 Sep 2020

Most Popular

16 ways to speed up your laptop
Laptops

16 ways to speed up your laptop

16 Sep 2020
16 ways to speed up your laptop
Laptops

16 ways to speed up your laptop

16 Sep 2020
Google removes 17 apps infected with evasive ‘Joker’ malware
malware

Google removes 17 apps infected with evasive ‘Joker’ malware

28 Sep 2020