According to recent speculation Apple has signed up a host of big names to its new payment system which could be launched as soon as next week alongside the new iPhone. Success here would be particularly sweet given the relative failure of Google Wallet.
A Bloomberg report suggests that Apple’s iPhone 6 will include a mobile wallet. Essentially, what this phone allows you to do is to pay in a variety of stores using just your iPhone, so long as these stores have the relevant technology. This device has the potential to make your everyday wallet redundant and although mobile wallets have not yet gained any serious momentum 3 years after Google entered the market Apple is banking on this changing. Richard Patterson of UK SIM card deals site www.sim-only.co.uk says, “Apple may be the one brand that can really kick start mobile wallets, with its loyal army of followers and track record of shaking up existing markets this may be the tipping point for more retailers to start taking NFC payments which in turn will be crucial to how quickly mobile wallets are adopted amongst consumers”.
So how does it work? A report has recently been made available online that explains some of the details of the deal, however, the person who leaked the information has asked to remain anonymous. The new technology has been combined with a new form of payment, developed by Apple, which will based around the near field communication chip. As well as this chip, there will also be fingerprint recognition technology, developed by Apple themselves called Touch ID. Of course, you can develop the technology, but you need the deals in place to be able to link the device to the banks and credit card companies to enable payment. Apparently, these deals are already in place. A number of financial institutions have been contacted by Apple and have agreed to assist them in the new mobile wallet device. Credit card companies Visa and MasterCard have signed up as well as card giants American Express. Apple also needs the help and support of the retailers to allow the technology to work in stores throughout the world. These deals are also being negotiated according to a report.
Bloomberg reported that Visa and American Express have neglected to respond when the report was presented to them with Apple and MasterCard refusing to comment on the speculation of the mobile wallet device too. However, there are rumors that more information may be made available once the new iPhone has been revealed on the 9th September.