Apple is widely expected to join the mobile payment revolution with the release of the iPhone 6. The next generation iPhone is expected to feature Near Field Communication for the first time, a technology that has been present in competitors smartphone for nearly two years. Nevertheless, Apple is expected to kick start the mobile payment industry and succeed where others have failed, according to Quartz’s Dan Frommer.
According to Dan Frommer, Apple has the critical mass, cachet and trust, the right business model and timing on their side.
Dan Frommer:
[su_quote]
Now Apple, which will reportedly announce its mobile payment system next week, has a chance to kickstart the market. And it might actually succeed. Because of its size, power, and—most importantly—its focus on the user, Apple is uniquely positioned to make in-store mobile payments work. Finally.
Apple could start by creating the first simple, global brand for mobile payments. Whether it’s called iPay, AirPay, or something else, Apple could start by making something people will recognize. Apple is reportedly going straight to the source, forging partnerships withMasterCard, Visa, and American Express, so there shouldn’t be any question of whether people can link the payment cards they’re already comfortable using.
Apple, unlike Google, has absolute control over what goes into its phones, so it can ensure that all new iPhones—and other devices, such as its reportedly forthcoming wearable gadget—support its payment system. With more than 40% of the US smartphone market, Apple can get this service into millions of pockets faster than any other company. And because Apple insists on having the upper hand in its relationships with mobile operators, it shouldn’t have any embarrassing situations like Google had with Verizon Wireless, which effectively blocked Google Wallet in 2011.[/su_quote]
