As noted here by VentureBeat, Apple may be gearing up to build its own proprietary mobile payment system.
That’s according to a study titled “Mobile Payments — Blue Paper Revisit, EMV in Focus” from Morgan Stanley’s Research group in Europe.
While the Morgan Stanley study primarily covered the mobile payment ecosystem as a whole, two paragraphs singled out Apple and posited that it is in an ideal position to go ahead and produce its own system. According to the Morgan Stanley researchers, who cited primarily public source information outlets and not Apple insiders: “Recent comments by the company indicate increased likelihood that Apple will launch a mobile payments platform. CEO Tim Cook commented on the December quarter earnings call and since then in the Wall Street Journal that the company plans to launch new product and services categories in CY14. When asked directly about mobile payments on the earnings call, Cook said that customers want to purchase content using Touch ID (the fingerprint sensor) because it is simple, easy, and elegant. Currently, Apple allows users to purchase content from the iTunes and App Stores using their fingerprint but the technology is not available to third-party applications. Cook also said he saw more opportunity in this area, especially when given the demographics of Apple’s customers and the amount of commerce that goes through iOS devices versus competing platforms.” If Apple does build the system, it makes sense that it would have to develop a costly customer service base to help facilitate transactions — and complaints. The company could build one from scratch or use existing customer service centers in India.