Will This New App Help Apple PUNCH PayPal?
Apple (NASDAQ:AAPL) boasted about having 400 million active accounts with credit card details during its keynote speech at the Worldwide Developers’ Conference on Monday, but the company is making another big push in electronic payments. Its new native app, Passbook, is designed to make mobile devices more proactive in helping consumers with everyday activities. Passbook, which will be launched along with iOS 6 this fall, stores all of a user’s passes or tickets, including boarding passes, store cards, and movie tickets, and automates the payment system.
For instance, if a user has stored a Starbucks (NASDAQ:SBUX) card on the app, the balance on it will be automatically updated with each payment. Passbook settings can also be made time- or location-based and the app is also integrated with the lock screen, so that when the device is near a Starbucks store, a message pops up alerting the user. With airline boarding passes, the app can create an automatic alert if there is a gate change after a user has checked in for a flight. There is also the option of “shredding” a card virtually.
While the app is not yet a full mobile payments system, like Google (NASDAQ:GOOG) Wallet, it is likely to have a big impact on other companies in the virtual gift cards, loyalty cards, reward cards, incentive cards, and ticketing business, including Pay With Square and PayPal (NASDAQ:EBAY) Here. And it may expand its purview very soon. “We are really seeing the stage being set for the framework on how Apple will integrate with Visa (NYSE:V), MasterCard (NYSE:MA), and the other Payment Card networks,” investor Brian Roemmele writes on Quora. Can Passbook subsume all other virtual payment systems?
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