Apple and Google Rivalry

It looks as if Apple and Google are going to continue their rivalry as both continue to fight for dominance in the mobile wallet space.  According to 9to5mac, leaked images emerged of the next iPhone, and many are speculating that a chip which appears at the top of the leaked image is in fact a near field communication chip (NFC).  NFC technology provides the capability for phones to connect within a certain range using communications through radio.  The most prominent example of how NFC technology is used is in mobile payments, like scanning your phone over a point of sale.  Google Wallet has already implemented this into its devices last year.

Some say that the leaked pictures of the iPhone chip show that Apple is getting ready to launch its own mobile payment system.  This is mere speculation at this point, but if Apple does in fact carry through with it, competition between Apple and Google would be fierce.  Apple has released a beta version of Passbook, and in September it will become a native app for all iOS6 devices.  Passbook will store all a person's coupons, tickets, cards, and passes in one organized app.

Google Wallet, on the other hand, would mirror Passbook's functions.  When Google Wallet was first launched last year, it only held one credit card and was very limited in terms of use.  But now, the head of product management has mentioned that they plan on making Google Wallet a storage hub for everything that is inside a person's wallet, including ID cards, loyalty cards, gift cards, and transportation passes.  Some of these are already a part of Google Wallet, but there is always room to add more.  

Google Wallet and Passbook are very similar in terms of functionality and there is no doubt that competition between the two firms in the mobile payments arena is going to be cut throat.  Google Wallet's one year head start doesn't seem to make much of a difference.  Passbook has generated much more buzz than Google Wallet, so I'm betting on Passbook's victory.

Check out PassK.it so you can try out Passbook today.  You can download sample passes and even use their pass creator (when it is launched) to design your own Passbook passes.

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.

Passbook iOS6 and the Acceptance of Mobile Payments

Gone are the days where we carry around bulky wallets and expired coupons from 1999.  In around September/October of 2012, Apple will be publicly releasing Passbook, a native app for iOS6 devices.  It is a digital wallet that stores tickets, cards, coupons, and other passes in one clean, easy to use app. Users are given easy accessibility as all Passbook items are categorised in an orderly manner, and browsing through to locate the right pass is simple to do.

We live in an era where the use of smartphones is dominant, and it is through these devices that people can now check their e-mails, browse the web, play games, and some even support mobile payments.  The versatility one receives from a single device is phenomenal.  Certainly, it will take time for consumers to completely accept using mobile payments through their smartphones, but Passbook coming into the market could eventually lead to an acceptance of mobile payments.

For retailers in the business of distributing tickets, coupons, or loyalty cards who want to create Passbook passes would definitely benefit from Passbook.  Using Passbook at work would lessen printing costs as all passes would be digitalised, and updating the passes wouldn't require reprints either.  Using Passbook at your point-of-sale would also increase transaction efficiency as users no longer have to fumble through their wallets searching for the right card.  It would simply appear on their lock screens ready to use.  

One of Passbook's largest features is its time and location enabled capabilities.  This allows for real time messages and alerts to a consumer's device.  For example, if an individual walks into your outlet, their store card would appear right on their lock screens, garnering them easy access to the card.  The mere presence of the card on their lock screen already is an encourager to spend at your outlet because it didn't require any effort from the consumer at all.  If a consumer is walking around a particular district, they could be notified of certain promotional deals based on their location.  A casual window shopper could easily turn into a buyer through these powerful geofencing tactics.  

Apple's Passbook is undoubtedly a large step into mobile payments.  By the time of its release, if more retailers begin creating and distributing Passbook passes efficiently, there's no telling how this could transform the mobile payments industry in the long run.