Inside Apple’s Go-Slow Approach to Mobile Payments

Apple is starting to jump on the bandwagon and follow what Google and Microsoft have done with mobile-payments. Right now Apple is known to be on the “sidelines” of the mobile-wars because they are letting their competition do the research for them. It is stated in the article that Apple is completely comfortable being “number two” right now. Mobile payment is a way that consumers can pay for their purchases with their smart phones instead of having to carry their wallets around.

These mobile payment transactions from the smart phones are suppose to exceed $600 billion by 2016 and just this year reach $172 billion. Google first started this mobile payment, which for their Androids is called the Google Wallet. Last month Microsoft said they are going to release a digital wallet service that will store the credit card information of the handheld user and their mobile payment information. Apple will release their part for mobile payments once they research more about that market. Right now they are just using the wait and see approach. If and when Apple enters the mobile payment arena they will have an advantage over the other companies because they have sold more than 200 million iPhones. They also have 400 million credit cards registered with their apple store.

When Apple decides to launch their mobile payment application do you think they will succeed over Google and Microsoft because of their market share now?

13 thoughts on “Inside Apple’s Go-Slow Approach to Mobile Payments

  1. I cannot believe how vast those numbers are for the future number on $ transactions. When Apple gets into the market I feel that will become very well-known and it will work. Anything they touch turns to green.

  2. I am sure they will succeed for one reason, they have a number of loyal customers that don’t see anything besides Apple production.
    Personally, I don’t like the idea of electronic wallet at all. It seems very unsafe.

  3. I am sure Apple will succeed. The mobile payment market is still developing, therefore there is a lot of space for other companies as well. In addition, Apple has resources that a lot of companies don’t have.

  4. I think the WSJ article is misleading in that it ties two separate strategies in together and make them look like they are competing. Apple already has “mobile payments” setup, in the same way that Starbucks does (the world’s biggest affinity program): through their iTunes store, and their Apple Retail Store App. Customers can pay for products using their stored CC info in their iTunes account and never reach for their wallet. Starbucks has a similar system set up. Neither of them are losing in their respective spaces, and in fact Apple (along with Amazon) really pioneered the ways in which stored CC information can be mined and exploited to generate further customer purchases.

    What Google and Microsoft are trying to do is become the digital wallet for every retail store; your stored CC in your Google account wouldn’t just work in the Android Marketplace, but it could pay for lunch at Portillo’s and clothes at Nordstrom’s. All without you getting your credit card out. This is a business model I don’t think Apple is interested in–they want their customers to easily be able to spend dollars at their own store, but being the conduit to spend at other retail establishments doesn’t really make sense with inventing another currency (and we saw how well that worked for Facebook).

  5. I think they will succeed in this as well as in everything else Apple has to offer. I was just talking about Apple products with a friend of mine and although everyone sometimes has something bad to say about Apple, we all love it in the end because it turns out to be the best product out there and definitely durable too, which makes the great expense worth it.
    The wait and see approach will definitely help them out to because if things go wrong with mobile payments they can see the negative comments and fix those problems and make their product the best. And they would get to see if there is a high demand for it or not.

  6. I think with Apple’s credibility, the mobile payment approach will be a success because there are already many companies who offer such a service, and with Apple controlling so much of the electronic market, there is no reason why Apple shouldn’t be right up there with Google and Microsoft. There are so many people who are already using similar applications, so if Apple created their own version of that app, I’m sure people will switch over in a heartbeat.

  7. I believe they will succeed when they launch the mobile payment application. The reason why I say that is because before they launch the application they are going to do all the research possible and try to make it the best application that would be running on any phone. Also when people think of apple they think of “great” and when that application comes out they will eventually think its “great” since it is made by apple.

  8. Of course, I think apple will succeed because IPhone is still the popular smart phone in the world. I think after Apple finish the research, they would understand the advantages and disadvantages of mobile phone. And then they would improve and develop a better app or software for it. Even though Google and Microsoft had already provide this service, but I don’t think it is really popularize. Also, I think IPhone users would like to try the Apple’s mobile payment even if they never use mobile payment. If most of the IPhone users use this app, the number of users must be bigger than Google and Microsoft. On the other hand, it is so important to do the research for this because mobile payment is a brand new product. Apple need to create a new app or software for mobile payment with brand new idea and prefect protection otherwise they must lose money.

  9. I think that apple will definitely give microsoft and google a run for their money and possibly win the race in the end. Apple runs the industry with their phones, ipods, ipads and apps. They are the leaders and everyone else is a follower. This time they decide to learn from their competition and let them do the heavy lifting and research. It’s a wise move given the high risks of identity theft when your wallet is digital and on your phone.

  10. Yes Apple will succeed. Many people (including myself) have been waiting for Apple to incorporate NFC technology into their smartphone devices. It is something that Apple has been thinking of doing for a while and the time is right and I am happy that they are investing this into the Iphone5. People want options, and having it on the mobile phone is a perfect way to go. Apple is smart when they roll anything out. They know that they dominate the market and that people are going to be buzzing about the products that they announce so they create hype and then release it, even though it might not be as good as another product on the market. In the end they are still successful because of the brand name Apple, which is what people trust.

  11. Apple succeeds at all of its endeavors so i don’t see why this will be a problem. I think that they company is playing it smart by using the wait and see approach and letting the other companies flus out all the kinks before they jump completely into this new market. I do potentially see many cases of fraud with this kind of information being sent directly from hand held devices but we are the new generation and what do we love more than risk.

  12. Of course what does the android and goolge have over apple pretty much nothing. Apple has the ipod, ipad, mac book air, etc. they have a variety of theings you can switch to. People today are not loyal but business savy and wanting something more unique. We buy the phone and cover it with a case. Apple will compete but people are still going to have to get used to mobile payment.

  13. It’s not surprising that Apple is waiting for Google and Microsoft to make the first move. Many of Apple’s ‘innovations’ are designs of preexisting products. MP3 players existed before the iPod and “slate” PCs existed before the iPad. Apple’s comparative advantage is that they can take existing products, make them user-friendly, make them stylish, and then market those products as something revolutionary. I suspect they will do something similar with mobile payments. Maybe they’ll add some sort of finger print or voice recognition software to prevent thieves from stealing cell phones. 

    Sent from my iPhone in Frankfurt Germany 

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