As it stand right now, mobile payments are a bit of an interesting feature on smartphones. Numerous mobile wallets have tried to be the best at paying for our coffee with our smartphones, but we’ve yet to see one mobile payment method truly shine through the rest. Right now, it’s really just a hoshposh of different companies trying to do the same thing, and it isn’t really working out all that well. This could change soon, as reports have come out suggesting that Apple could possibly be in talks with Visa about a truly awesome mobile payment system.
Josh Beck is an analyst at Pacific Crest and said that there is fresh news regarding a fresh change in the systems of Visa, including a focus on improved security. Why does this concern the likes of Apple though? With security on our mobile devices becoming an ever growing concern for a lot of users, having the security of a company as big as Visa could really give mobile payments the boos that they so desperately need right now. Beck said that “After analyzing the payments, handset, enabling technology and Internet landscape, we think a partnership between Apple and Visa would make strategic sense.” And make sense this partnership surely would. With the announcement of the much anticipated iPhone 6 expected sometime this fall, a new partnership with Visa could make great headlines along with the announcement of the new iPhone.
Apple has already tired to get their foot in the door with their Passbook app. One of the features of Passbook allows users to utilize in-store coupons when shopping. Deeper mobile payment integration with Visa and the Passbook app could really elevate the already solid potential of the application. On the topic of Passbook, Josh Beck said that “Apple mobile payments could be Passbook on steroids. Apple could use its large stockpile of iTunes accounts and cards on file (about 800 million), along with Passbook and a new token partnership with Visa, to provide a highly scalable payments platform.” Beck isn’t the only one to think that a partnership between Apple and Visa makes sense. Roger Key is an analyst at Endpoint Technologies Associates and feels the same way that Beck does on the matter. According to Roger Key, “It makes sense for Apple to have a partner for the back end. And it makes sense for Visa to partner with a device vendor so deeply entrenched with consumers.”
With mobile payments currently struggling like they are, a new partnership between Apple and Visa would be an incredible move for the mobile payment market. Google Wallet has been fairly successful, but two names as influential as Apple and Visa working together could really turn the market on its head. Apple and Visa have yet to confirm any information on the possible partnership. If it is going to happen at all, an announcement at the event for the rumored iPhone 6 sometime in the fall is expected as of right now.