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

Top Rated Comments

newagemac Avatar
105 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
105 months ago
Apple buy paypal already

eBay is selling paypal?
Score: 4 Votes (Like | Disagree)
Cougarcat Avatar
105 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
105 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
105 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
105 months ago
Mobile payment solution better than Paypal, please...
Score: 3 Votes (Like | Disagree)

Popular Stories

cook sept 2020 event

Gurman: Apple Preparing Pre-Recorded iPhone 14 and Apple Watch Series 8 Event

Sunday August 7, 2022 6:13 am PDT by
Apple has "started to record" its virtual September event, where it's expected to announce the upcoming iPhone 14 lineup, the Apple Watch Series 8, and a new "rugged" Apple Watch model, according to Bloomberg's Mark Gurman. Writing in his latest Power On newsletter, Gurman says the event, which is expected to take place in the early part of September, is already under production, implying...
Apple Watch Series 7 Starlight Midnight

Standard Apple Watch Series 8 Rumored to Feature Same Design as Series 7

Friday August 5, 2022 7:46 am PDT by
The standard 41mm and 45mm models of the Apple Watch Series 8 will feature the same design as the Apple Watch Series 7, according to Twitter user @ShrimpApplePro, who was first to reveal that iPhone 14 Pro models would feature a new pill-and-hole display. Titanium will not be an option for the standard Apple Watch Series 8 models either, according to @ShrimpApplePro, but Bloomberg's Mark...
iPhone 14 Lineup Feature Purple

Color Options for All iPhone 14 Models: Everything We Know

Monday August 8, 2022 3:59 am PDT by
The iPhone 14 and iPhone 14 Pro models are rumored to be available in a refreshed range of color options, including an all-new purple color. Most expectations about the iPhone 14 lineup's color options come from an unverified post on Chinese social media site Weibo earlier this year. Overall, the iPhone 14 and iPhone 14 Pro's selection of color options could look fairly similar to those of the ...
ios 16 beta 5 battery percent

iOS 16 Beta 5: Battery Percentage Now Displayed in iPhone Status Bar

Monday August 8, 2022 10:43 am PDT by
With the fifth beta of iOS 16, Apple has updated the battery icon on iPhones with Face ID to display the specific battery percentage rather than just a visual representation of battery level. The new battery indicator is available on iPhone 12 and iPhone 13 models, with the exception of the 5.4-inch iPhone 12/13 mini. It is also available on the iPhone X and the iPhone XS. Battery percent...
iphone 14 pro max camera bump compared lipilipsi 16 9

Bigger iPhone 14 Pro Max Camera Bump Shown Alongside iPhone 13 Pro Max

Monday August 8, 2022 4:33 am PDT by
The camera bump on the upcoming iPhone 14 Pro Max is expected to be the largest rear lens housing Apple has ever installed on its flagship smartphones, and a new photo offers a rare glimpse at just how prominent it is compared to Apple's predecessor device. iPhone 14 Pro Max dummy (left) vs iPhone 13 Pro Max All iPhone 14 models are expected to see upgrades to the Ultra Wide camera on the...
ipad pro magic keyboard white

Rumor Claims Next iPad Pro to Feature New Four-Pin Smart Connector

Sunday August 7, 2022 11:57 am PDT by
A new rumor claims that the next-generation 12.9-inch and 11-inch iPad Pro will feature a new four-pin Smart Connector, an update from the current three-pin connector in the iPad Pro. The rumor from Mac Otakara, citing "reliable sources," says that the next iPad Pro, expected to debut possibly as soon as this fall, will feature a new Smart Connector that has four-pins rather than three. The...