Apple's Passbook as the Next Credit Card?

Apple has transformed the way we listen to music, browse the Internet, use phones, and carry out mobile tasks through tablet computers.  Technology for these activities have already existed, but Apple has taken the user experience to an entirely new level through innovation.  Passbook is just another app that will challenge competitors, especially credit card companies like Visa and MasterCard.

Passbook will be a native app for iOS6 iPhone and iPod Touch devices.  It is a virtual wallet that stores all your tickets, coupons, boarding passes, and cards into one, categorized application.  Users no longer have to rummage through their wallets for the right pass.  A swipe of the finger to locate the pass and a simple scan of the code embedded into it would allow the card or ticket to serve its function.  However, Passbook does not handle credit card transactions...yet.

It's been revealed that Apple has 400 million credit card users under iTunes, and it would make sense for Apple to integrate this into Passbook for future credit card transactions.  If we think about it, 400 million accounts is a considerably large figure that could easily rival credit card companies.  If Google or Microsoft had access to this many accounts, they would be jumping for joy.  So if Apple were to integrate near field communications chips into their products, soon enough people could be using their devices to purchase groceries, clothing, and meals.

Because of Apple's authoritative global presence, it could easily bypass credit card companies and build its own online payment system.  An Apple credit card could surface, and loyal customers could even be lured in with Apple discounts just by using Apple's payment system.  Apple could work with banks directly to achieve this payment scheme, and it definitely has the financial capacity to achieve this.

But would Apple actually go ahead and do it?  On the bright side, Apple would no longer have to pay credit card transaction fees and with this they could build their brand and expand its presence in local shops and retailers.  Accompanying this, Apple hardware would be introduced for point-of-sale systems, and this is yet another line of hardware that would upsize its revenues.  However, Apple could face challenges and the complexities of a credit card like infrastructure.  I'm not certain myself, but I'm guessing that there are global regulations and guidelines to follow that Apple could struggle with.  In any case, to have an Apple credit card succeed would be determined by its 400 million credit card customers.

Passbook is an introduction to digitalized wallets, and once consumers trust their devices in carrying out these transactions, Passbook could eventually lead to payments.  Depending on how receptive consumers and retailers are to Passbook, Apple could completely alter the mobile payment industry for good.