Apple’s newly patented mobile payment solution for the iPhone may block banks from reaping the benefits of mobile payment’s long-awaited arrival, says American Banker.
While financial institutions were expecting Apple’s new system would rely on debit or credit cards, Apple had its eyes set on allowing customers to use their iTunes accounts to store credit for mobile transactions.
In effect, this cuts banks entirely out of the picture, as consumers can use Apple’s solution to buy just about anything through an iTunes account, in addition to swapping cash peer-to-peer.
However, American Banker points out that banks may be able to realize their mobile wallet hopes in Apple’s wake.
“Bear in mind also that, if Apple drops a technology into a device, others will quickly follow suit,” says Nick Holland, a senior analyst at Aite Group LLC in Boston. “Alt-payments providers should be licking their lips.”
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