Apple is reportedly planning to develop an iTunes based mobile payment service. The service as predicted would allow the millions of iTunes Store users to buy physical goods through their iTunes account using their iPhone.
More than half of the iTunes users have their credit card credentials added to their account. Apple plans to enable those users to purchase goods from any physical store using their iTunes account on their Apple smartphones.
Apple’s head of iTunes, Eddy Cue, had been reportedly meeting several executives of the tech industry to discuss the possibility of such a service.
Eddy Cue, Apple’s iTunes and App Store chief and a key lieutenant of Chief Executive Tim Cook, has met with technology industry executives to discuss Apple’s interest in handling payments for physical goods and services on its devices, according to people familiar with the situation.
In another sign of the company’s interest, Apple moved Jennifer Bailey, a longtime executive who was running its online stores, into a new role to build a payment business within the technology giant, three people with knowledge of the move said, quotes Macrumors
Apple stores the credit card details and several other information about the iTunes users over the cloud.
Apple already introduced similar services early on including the Bluetooth-based iBeacon technology and the Apple Store iPhone app, both of which allowed the iDevice users to securely perform mobile payments in Apple Stores worldwide. Those services were however limited only to the Apple Stores and the ones with the service enabled.
The current development suggests Apple would allow the iPhone users to but any goods from a physical market without interfering the shopkeeper.
Apple has credit card details of several of its iTunes users. Introducing this service will give the registered users a new and easy way of buying stuff while Apple will get its’ cut off every purchase which would make it earn millions of dollars in a few days.
This decision puts Apple in comparison with several other payment services including PayPal, MasterCard, Amazon, Stripe and even Google. Apple would really need to stand out here so as to gain user preference.
The exact launch date of this service has not been revealed. Apple also has not officially announced the service but it is expected to be launched this year.