Skip to main content

PayPal, Banks On Notice As Apple Sizes Up Person To Person Payments

 
Apple has made a sizeable dent in the payments market with Apple Pay, even if the lack of ubiquity in the US and the delay in getting the technology into more advanced markets has constrained take up.
 
Now Apple is rumoured to be looking at person to person transactions, which seems an entirely reasonable next step. This news should have PayPal quaking in its corporate boots.
 
We know how good Apple is at making this sort of thing frictionless, and as it already has account details for hundreds of millions (billions?) of users in its various payments solutions, making paying someone directly a zero effort option for existing users.
 
It isn't just PayPal that should be worried. The banking sector should be looking over its shoulder and wondering how its going to deal with this three-hundred pound gorilla bearing down on it.
 
That's because it's only a very small step from transferring money between user's bank accounts using Apple Pay, to transferring and holding money in user's Apple accounts instead.
 
And if you doubt Apple's interest in financial services consider this: the recent iPhone subscription purchase program is effectively a step into loans on a massive scale. Not to mention Apple Care is straightforward insurance business.
 
Customers already trust Apple to hold and secure their finances by proxy when they hand over their credit card details to the iTunes Store or Apple Pay. Why wouldn't they hand over the management of those services too?
 
I'd imagine that Apple's financial benefit from cutting out credit card provider transaction fees would make this a must-do all on its own. And if there's one industry sector which can reduce Apple's reliance on the iPhone for its revenue financial services is probably it.

Comments

Popular posts from this blog

F1: Robert Kubica Impresses In Renault Test Run

The car may be old but its the performance of the driver that's the story here. Robert Kubica returned to F1, after a fashion, earlier this week with an extensive test run in a 2012 Lotus Renault F1 car at Valencia.
The age of the car and the circuit were likely determined by F1's current rules which ban testing, but the reason for Kubica being in the car is far more interesting. Considered by many to be a potential World Champion and certainly one of the fastest drivers of his generation, Kubica's F1 career seemed to be over after a 2011 crash whilst driving in the Rally of Andora. His Skoda Fabia was penetrated by a guardrail in the high speed accident partially severing his right arm.
Up until last year Kubica has been competing in rallying, with the expectation that the limited movement in his repaired arm would prohibit a return to single seater racing.
So this week's test is both interesting and confusing. Interesting because Kubica completed 115 laps of the ret…

Panos Panay's Defence Of Microsoft Surface Hardware Sounds Eerily Familiar

This weekend I went out with my ten year old daughter to select a laptop for her school year beginning in January. The schools requirements are quite specific, requiring a Windows 10 device, with a preference for a touchscreen and a stylus. She chose a Surface Pro, after trying a large number of different options. Having seen the way I use my own Surface Pro - and tried it herself there was only ever going to be two options - and the other was a Surface Laptop.
I tell you this so that you understand I am a buyer of Microsoft's products through choice, not compulsion. I'm on my third Surface device now. 
So when Panos Panay dismissed reports of the death of the Surface hardware line, I was very interested to see exactly how strong these denials were. Especially how they reflect what has gone before. To whit: Windows 10 Mobile.
Panay claimed that Microsoft is in hardware for the long haul. Almost exactly mirroring the words of Terry Myerson, when he claimed Windows Mobile was g…

WhartonBrooks Indiegogo Windows 10 Mobile Even More Doomed To Failure Than Usual

WhartonBrooks is currently crowd-funding its latest Windows Mobile smartphone on Indiegogo. If crowdfunding isn't already a bad enough idea, a company trying to crowdfund a Windows Mobile device should be warning enough for you.
Not that anyone seems to be taking the project too seriously. With a few weeks left to run the campaign has managed to ensnare just 2% of its $1.1m target.
If you want a better indication of how few Window Mobile loyalists remain I doubt there is one. Of 3,900 Windows Phone enthusiasts Wharton Brooks was seeking for its new phone, it has managed to entice just 50.
Windows for Phones is dead, even if the corpse hasn't stopped twitching yet.