Apple in Talks With Credit Card Companies Over Payment Solution, Could Launch Mobile 'Wallet' This Fall

applestore.pngApple's talks with companies in the payment industry have been heating up in recent months, according to a new report from The Information. Apple executives have discussed launching a mobile payment solution as soon as this fall, allowing users to pay for physical goods with their iPhones.

Apple is currently speaking with credit card company Visa over a possible partnership, a move that would bypass third-party payment processors resulting in direct savings for retailers and customers.

Apple's payment solution is said to work with a "secured element" within the iPhone, safely storing payment credentials. This secured solution may involve the "Secure Enclave" built into Apple's A7 processor.

Apple has told some partners its system would involve a so-called secured element in the phones--a piece of hardware where sensitive information such as a phone owner's financial credentials can be stored. The company also aims to run the system without giving up any control to wireless carriers.

The Secure Enclave, which was designed for Touch ID, is a coprocessor within the A7 chip that uses a secure boot process to ensure that its separate software is both verified and signed by Apple. It functions independently even if a kernel is compromised and contains a unique ID that is inaccessible to other parts of the system, keeping all data held within safe.

Apple's interest in the mobile payment arena has been rumored for years, but gained renewed attention earlier this year when The Wall Street Journal suggested the company as working on a new mobile payment service. As previously detailed, the service is said to allow people to use their iOS devices to make purchases for physical goods in apps and on the web, as well as in retail stores.

The payment solution will most likely be built around iTunes, allowing Apple to leverage more than 800 million iTunes accounts, most with credit cards attached. It may also be tied to Touch ID, the fingerprint scanning home button built into the iPhone 5s and slated for inclusion in future iPads and iPhones.

In January, Apple CEO Tim Cook said that mobile payments were "one of the thoughts" behind Touch ID. He has also said that Apple is "intrigued" with mobile payments and noted there's a "big opportunity on the platform."

Earlier this year, Apple was said to be in talks with Paypal about a possible partnership and it has also sought out senior payments industry executives to take on roles within the company.

Related Roundup: Apple Pay

Popular Stories

Beyond iPhone 13 Better Blue Face ID Single Camera Hole

10 Reasons to Wait for Next Year's iPhone 17

Monday July 8, 2024 5:00 am PDT by
Apple's iPhone development roadmap runs several years into the future and the company is continually working with suppliers on several successive iPhone models simultaneously, which is why we sometimes get rumored feature leaks so far ahead of launch. The iPhone 17 series is no different – already we have some idea of what to expect from Apple's 2025 smartphone lineup. If you plan to skip...
iPhone 15 Pro Cameras

iPhone 17 Pro Max Will Be First Model to Feature Three 48MP Cameras

Thursday July 11, 2024 12:20 am PDT by
Next year's iPhone 17 Pro Max will feature an upgraded 48-megapixel Tetraprism camera for enhanced photo quality and zoom functionality, according to Apple analyst Ming-Chi Kuo. In his n-iphone-tetraprism-upgrade-ca62dd37e364">latest investor note published to Medium, Kuo said the key specification change would be a 1/2.6" 48MP CIS sensor, up from the 1/3.1" 12MP sensor expected to be used...
iOS 18 on iPhone Feature

Everything New in iOS 18 Beta 3

Monday July 8, 2024 12:54 pm PDT by
With the third betas of iOS 18 and iPadOS 18 that Apple released today, there are additional tweaks to a number of features like Dark Mode icons, the Photos app, emoji in Messages, and more, with Apple appearing to be preparing for the launch of Apple Intelligence. Apple will continue updating iOS 18‌ over the course of the next couple of months, refining the beta prior to its launch....
iPhone 17 Plus Feature

iPhone 17 'Slim': Everything We Know So Far

Friday July 5, 2024 5:13 am PDT by
In 2025, Apple is expected to discontinue the iPhone "Plus" device in its iPhone 17 lineup to make way for an iPhone "Slim" – although it may not actually be called this when it debuts in the fall of next year. Even though the iPhone 16 series launch is still over two months away, when you consider that we learned about larger displays on the iPhone 16 Pro models way back in May 2023, rumors...
Beyond iPhone 13 Better Blue Face ID

iPhone 16 Models Rumored to Have Face ID-Related Design Changes

Tuesday July 9, 2024 9:15 am PDT by
iPhone 16 models coming later this year could have some Face ID-related "design changes," supply chain publication DigiTimes said this week. The original source of this information is British newspaper The Telegraph, which six weeks ago reported that Face ID component supplier Coherent was considering selling or repurposing a manufacturing facility in Newton Aycliffe, a small town in...
AirPods Pro Beta Firmware

Apple Releases New AirPods Pro 2 Beta Firmware With Support for iOS 18 Features

Tuesday July 9, 2024 11:46 am PDT by
Apple today released a second beta firmware for the AirPods Pro 2, including both the Lightning and USB-C versions. The updated firmware has a build number 7A5244b and it is available to developers at the current time. This is the second firmware update that Apple has released since announcing new AirPods Pro 2 features in June. There are several new features that are coming to the AirPods...
iPhone 16 Pro Front Update Blue

iPhone 16 Pro Rumored to Support 40W Fast Charging and 20W MagSafe

Wednesday July 10, 2024 3:57 am PDT by
Apple's forthcoming iPhone 16 Pro and iPhone 16 Pro Max will support 40W wired fast charging and 20W MagSafe charging, claims a rumor currently swirling around China. Right now, iPhone 15 and iPhone 15 Pro models are capable of up to 27W peak charging speeds with an appropriate USB-C power adapter, while official MagSafe chargers from Apple and authorized third parties can wirelessly charge...

Top Rated Comments

newagemac Avatar
130 months ago
Yosemite. iOS8. Handoff and Continuity. Healthkit. Homekit. TouchID. Mobile Payments. iWatch??? Apple TV???

Apple's entire integration plan seems to finally all be coming together. It's going to be really nice to be in the Apple ecosystem going forward.
Score: 16 Votes (Like | Disagree)
2010mini Avatar
130 months ago
Apple buy paypal already

eBay is selling paypal?
Score: 4 Votes (Like | Disagree)
Cougarcat Avatar
130 months ago
But, will it be faster than just swiping my card? If I have to muck about with the UI on my phone, I see little point.
Score: 4 Votes (Like | Disagree)
Davelfc Avatar
130 months ago
People will quite happily hand over their card to a complete stranger serving in a shop, who can then skim it. Revealing their card number, 3 digit code on the read and signature.

But offer people a more secure way of carrying out their transactions, that involve a fingerprint and they go crazy.

It cannot come quickly enough for me. Now I just need to find way to keep my thumbs more secure.
Score: 3 Votes (Like | Disagree)
HobeSoundDarryl Avatar
130 months ago
But, will it be faster than just swiping my card? If I have to muck about with the UI on my phone, I see little point.
There's a HUGE security benefit to going this way instead of continuing to use cards. Nutshell version: as is, much of the time, we hand our credit cards to complete strangers who then go away where we can't see them to process our purchase. They bring back a piece of paper that we sign, so we give those strangers our signature too.

Mobile "card-less" model: nothing leaves your possession. Your "card" (your phone) has something brought to it so that you can establish the connection to approve the transaction yourself. Your thumbprint or password is the replacement for your signature. The "stranger" doesn't get to see a card number, name, expiration date, security code or your signature; they just get a "transaction approved" validation.

While the latter is also not completely secure (nothing is), it would be a HUGE step toward reducing the ability for the less sophisticated identity thieves (which is most of them) to fake a transaction(s) as you.

----------

What happens if someone steals the iPhone. Are the iPhones so secure with the new technology?
They need to steal your thumb and/or your password too.
Score: 3 Votes (Like | Disagree)
realeric Avatar
130 months ago
Mobile payment solution better than Paypal, please...
Score: 3 Votes (Like | Disagree)