Wednesday, July 30, 2014

Apple Eyes New Revenue Stream: Turning your IPhone into a Credit Card

I think this idea might have the potential to be quite lucrative depending on how they implement it.

The tech giant is reportedly looking at getting into the mobile payment business. According to published reports, Apple is said to be in talks with credit card companies to create a service that would allow users to pay for items with the iPhones acting as credit cards.

With Apple now trading near its split-adjusted all-time highs, what will such a service mean for its stock? Gina Sanchez, founder of Chantico Global, believes this would be a potentially big deal for the company.

“Everybody is waiting for the next big thing because that’s what Apple is known for,” said Sanchez, a CNBC contributor. She noted that mobile payments are estimated to grow to $90 billion in 2017, from $12.8 billion in 2012, according to Forrester Research.
 
If they can take a cut of each transaction this could build up pretty quickly. It is high margin business as well. If I bought an iPhone6 I would certainly set it up to pay with my debit card instead of having to reach into my pocket.

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