The long awaited launch of iPhone 6 set for September 9 is expected to usher in iWallet after Apple Inc. (NASDAQ:AAPL) partnered with some payment networks and banks to create a mobile wallet in the new iPhone. Top of the list are Visa Inc (NYSE:V), Mastercard Inc (NYSE:MA), and American Express Company (NYSE:AXP), which are reputable payment options with wide consumer networks.
Apple Inc. (NASDAQ:AAPL) will for the first time bring in near-field communication chip to work alongside other breakthroughs like Touch ID and a fingerprint recognition reader to enable consumers make secure payments at the stores with the touch of a finger.
According to an article by recode, Apple Inc. (NASDAQ:AAPL) and American Express Company (NYSE:AXP) have come together to work jointly on iPhone 6 payment options. This came after The Information also reported that Visa Inc (NYSE:V) had also come to an agreement to work with Apple on the new payment system. Several sources have also confirmed the Apple’s deal with Mastercard Inc (NYSE:MA). The entry of these payment giants makes it a very likely leader in the market. Other companies like Google had earlier introduced similar checkout options, but with limited market penetration. Experts however believe that Apple actually defines the market thus its entry will definitely be a game changer.
“Love it or hate, Apple drives a lot of standards in the industry,” Ben Bajarin, an analyst for Creative Strategies LLC in San Jose, California, said in an interview. “They are the mover in these markets. When they do something, the industry seems to follow.”
The strategy is meant on keeping Apple customers around and engaged while at the same time bringing the wider market of consumers to its fold.
The fact that Apple Inc. (NASDAQ:AAPL) is partnering with companies like Mastercard Inc (NYSE:MA), American Express Company (NYSE:AXP), and Visa Inc (NYSE:V) also gives the innovation a jumpstart that will make it possible for stores to easily accept that payment method. By the end of 2012, Visa Inc (NYSE:V) already had 277 million users, Mastercard Inc (NYSE:MA) had 178 million, and American Express Company (NYSE:AXP) had 52 million. The three payment options have huge market share, which makes them invaluable in Apple iWallet debut.
This article has been written by Victor Ochieng.