Apple could cause some serious disruption in the mobile payments market if it enters that arena as reported, say analysts.
Reports noted earlier this week that Apple is planning to embed Near-Field Communications NFC technology into its next-generation iPhones and iPads. What’s likely to make Apple’s offering vastly different, however, is the company’s huge base of 160 million iTunes users, said Avivah Litan an analyst at Gartner. That base gives Apple the ability to operate largely as a “closed payment system” with minimal need to interface with credit card companies and banks, she said. “They can largely shut out credit card companies if they choose to,” and operate in much the same way that PayPal has done in the virtual world, she said.