During Apple’s Q1 2014 earnings call earlier this week, CEO Tim Cook mentioned that mobile payments were “one of the thoughts” behind creating Touch ID in the iPhone 5s. Suddenly, mobile payments and Apple are both being used in the same sentence, and more reports are surfacing that this may be arrive sooner than later. According to a report from Re/Code, PayPal is reportedly looking to work with Apple on bringing mobile payments to the iPhone.
Despite the fact that Apple could go ahead and create its own mobile payments system, the report notes that a deal with PayPal is still a possibility. This makes a lot of sense, especially when taking into account how much Apple would have to do to create its own system. Working with PayPal would allow Apple to set up a service much faster, especially because PayPal has been in the e-commerce business for over a decade and knows the industry inside and out.
The Wall Street Journal also reported recently that Eddie Cue is discussing mobile payments with industry executives as well as “Apple’s interest in handling payments for physical goods and services on its devices.” Apple has a very solid base to fall back on, should they decide to forge ahead with mobile payments. They can introduce NFC to the iPhone, use low-energy Bluetooth and Touch ID, and can give Passbook a larger role in mobile payments. The opportunities to introduce a solid system are endless, and could allow Apple to lead a virtually untapped market in the smartphone game.