A recent report from Celent, a research and advisory firm aimed at helping financial institutions develop business and technology strategies, provided a potential roadmap for tech giant Apple’s entry into the payments space.
Though little information is available on Apple’s plans, study author Zilvinas Bareisis outlined a possible approach for Apple’s move into the payments space: widespread online payments acceptance, physical store payments acceptance and a dive into lending.
Apple already provides payments for digital downloads for Macs, iPhones and iPads. The company also offers the Passbook app, which can be used to store payment information, travel itineraries and tickets.
Bareisis said the company’s current technologies, along with the TouchID fingerprint scanner, provide the technology framework for a competitive payments system, adding that the impact of the company’s entry into the payments space would depend on Apple’s market share.
“Apple is very important in the U.S. and Japan and several other countries where it dominates the smartphone market,” Bareisis said. “In Europe, Android and other non-Apple platforms have around 80 percent of the smartphone market.”
The report said that card issuers would likely benefit from collaboration with Apple, if the company’s payment platform is based on payment cards; however, if the company plans to add a lending solution, it would likely have a negative impact on the credit card industry and lead to positive gains for banks.