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Apple iPhone 6 Wallet Release Will Benefit Credit Card Companies and Challenge PayPal

May 26
10:46 AM 2014

Analysts and industry experts have predicted for years about Apple's possible inclusion of the near-field communications technology to its handset series. However, that has not happened but analysts remain hopeful. According to recent information, Apple may be planning on including a touch-less mobile payment system on the next iPhone 6. The tech giant has been developing its Wallet application in coordination with financing and banking institutions. 

Paying goods or services via smartphone may not be as impossible as it sounds soon. Morgan Stanley noted that Apple appears to be working on incorporating the NFC technology with the iWallet application. The company also predicted that this move shows Apple's growing interest over developing ties with payment companies like American Express, Visa and MasterCard. It is also part of the tech giant's strategy to develop and include a mobile payment system in its iOS devices beginning with the iPhone 6. 

If Apple can pull off the mobile payment system then it can compete with companies like PayPal and MCX. Banks, credit card networks, wireless phone companies and even tech giants like Google have been interested in the "digital wallet" system and industry. Many companies think there is a great market to be tapped by digital payment but only few have explored the idea. 

The main advantage that Apple has over other companies is its iTunes network and database. The company has more than 600 million users along with their personal and credit card information. This makes it easy for Apple to turn the network or expand it to a digital payment system. Many analysts think that Apple is a serious contender once it ventures into the said industry.   

Morgan Stanley analyst Smittipon Srethapramote notes: "Several news sites (including NFC World) have cited sources that Apple was working with China UnionPay to include an NFC payment application from the latter in Passbook." 

"If true, they would suggest Apple is making significant moves to leverage the card networks' reach to create a unique and wide-ranging payment experience within the next iteration of iOS and the next iPhone model." The analyst added. 

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