Apple’s New iPhone To Become A Mobile Wallet
Apple is reportedly turning its next iPhone into a mobile wallet. The tech major is partnering with major payment networks, banks and retailers for this initiative that would allow users to securely make mobile payments in a store with the touch of a finger, Bloomberg reported citing a source familiar with the situation.
The agreement includes partnering with Visa, MasterCard and American Express, said the source who added that the new iPhone will simplify mobile payment by including a near-field communication chip for the first time. That advancement along with Touch ID, a fingerprint recognition reader that debuted on the most-recent iPhone, will enable consumers to securely pay for items in a store with the touch of a finger, said the report.
It also stated that the company will make this announcement on September 9 at its mega event where Apple will be unveiling its next iPhone - iPhone6.
While there has been no official comment on the initiative, analysts believe for Apple, the push into creating a mobile wallet is to keep users within its ecosystem. This would also mean more loyalty to its brand and demand for its products.
Ben Bajarin, an analyst for Creative Strategies told Bloomberg, “It’s about retention, solving and adding features that keep your base engaged and keeping them loyal,” and added that Apple drives a lot of standards in the industry,” Bajarin said in an interview. “They are the mover in these markets. When they do something, the industry seems to follow.”
Re/code has also reported earlier that Apple had reached an agreement with American Express on the payments plan. It said that customers will simply present their phones at the checkout counters of partner retailers to pay for their purchases, though it isn’t clear yet which retailers have reached an agreement with Apple.
Reports suggest the next iPhone will come in two sizes. One model will have a 4.7-inch display, while another sports a 5.5-inch version. The tech giant is also coming up with a new wearable device, which it may announce along with its iPhone launch this month. The Cupertino-major was reportedly building a team of senior medical technology executives, earlier reports suggested.
Meanwhile Apple Chief Executive Tim Cook has promised that the company will break into new product categories soon.
Read more: Apple To Unveil Wearable Device Next Month
According to analysts, while Apple remains the undisputed leader in the tech industry, the company has been under pressure to boost growth as iPhone sales slow in a rapidly maturing market. Critics have also accused the company of slowly “losing its cool” and innovative edge to new and upcoming technology companies.
They believe that the slew of new initiatives such as mobile wallet features and the new wearable device may help Apple regain its market share and outdo some of its closest rivals in the industry.
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