Apple is Deliberately Holding Back on Mobile Payments
Apple is deliberately holding back on entering the mobile payments business, reports the WSJ.
Apple recently unveiled a new app called Passbook that will store customers loyalty cards, tickets, and coupons; however, the app does not offer mobile payment capabilities.
Holding back in mobile payments was a deliberate strategy, the result of deep discussion last year. Some Apple engineers argued for a more-aggressive approach that would integrate payments more directly. But Apple executives chose the go-slow approach for now.
The Journal notes that Apple SVP of Worldwide Marketing, Phil Schiller, recently said that mobile payment services are "all fighting over their piece of the pie, and we aren't doing that." However, Apple engineers have been experimenting with Bluetooth and NFC payment solutions. At a review meeting in early 2012 Apple CFO questioned the security of NFC and Schiller was worried that Apple facilitated credit-card payments could cause customers to blame Apple for a bad experience with a merchant. Thus, the company decided to release a scaled down version of Passbook for the time being.
Read More [via MacRumors]