About a week ago, Starbucks launched a national mobile payment network that would make it simple for customers to pay at the register using their mobile phones. Not much fancy technology involved, simply an app that displays a barcode that the barista can scan. They claim to be operating the largest mobile payment program in the country.
What does this have to do with Apple?
Apple’s iTunes Store has a payment network of millions of people worldwide. The iPhone is one of the most popular smartphones on the planet. According to Bloomberg, Apple will be embedding NFC chips into the next iteration of the iPhone an iPad. If you recall, Near-Field Communication (NFC) allows your device to beam and receive information at a distance of about 4 inches. This could be used to check-in to physical locations and also for, you guessed it: mobile payments.
If Apple can nail Near-Field Communication (NFC) and tie it directly into their already-established iTunes payment system. It could change everything. It could transform Apple from the biggest technology company in the world, to the biggest company in the world, period. By far. via TechCrunch
Google is well aware of the importance of NFC. The latest Android phone, the Nexus S, has NFC built-in and Eric Schmidt demoed the feature at the Web 2.0 Summit before the device was actually launched. The problem for Google is that they don’t have a robust payment network to support the technology. This is the key ingredient and Google’s Checkout just can’t compete.
Apple’s service may be able to tap into user information already on file, including credit-card numbers, iTunes gift-card balance and bank data, said Richard Crone, who leads financial industry adviser Crone Consulting LLC in San Carlos, California. That could make it an alternative to programs offered by such companies as Visa Inc., MasterCard Inc. and EBay Inc.’s PayPal, said Taylor Hamilton, an analyst at consultant IBISWorld Inc.
Are you ready for tap-to-pay?