Last week, Apple announced it’s financial results for Q2 2014 and, amongst the usual performance analysis, a few eye-opening user stats were provided. There are now more than 800 million iTunes accounts — most with active credit cards on file.
Independent analyst Horace Dediu tweeted the above chart highlighting the surprising gap between Apple and Amazon.
This proves to be a huge opportunity for Apple to utilize the 600M credit cards it has on file and launch its mobile payments service. Rumors have circulated about an iWallet software app since Apple’s unveil of the Touch ID functionality on the iPhone 5S, but with the latest information hitting the media, Apple looks to be very serious about iWallet development.
iTunes and iBeacon Would Facilitate iWallet
Last year, Apple quietly lit up over 200 million devices with iBeacon, it’s Low Energy Bluetooth technology. With over 600M active credit cards and more than 200M devices in consumers’ and stores’ hands, iBeacon mobile payments verified through Touch ID can take hold.
Centric Digital CEO Jason previously wrote that the “ultimate disruptor that gains mass consumer appeal will be the payment system that covers everything.” All of its recent moves show that Apple could have a serious, if not insurmountable, advantage in mobile payment adoption.
Apple’s rumored iWallet would have a gigantic, trusting user–base from the beginning, and would position Apple to take a giant marketshare early on, potentially allowing for lower rates than competitors.
How this affects traditional businesses.
Most businesses should focus on integration and finding the best cost savings, rather than creating home–grown mobile payment solutions. Credit cards flourished because of customer’s desire for a simple cross–sector solution.
All organizations should start to test accepting new payment methods and be prepared to accept multiple types of payment. Nonprofits can add Google Wallet to their sites to streamline donations and accept gifts directly from YouTube videos. Brick and mortar retailers can test in–store tablets to cut costs and increase sales.