Apple Digital Wallet: Is it possible that Apple Inc. (NASDAQ:AAPL) could get involved with a digital wallet service for iOS users in the near future? If you believe what Piper Jaffray analyst Gene Munster has to say about Apple, the answer is yes.
As you may recall from earlier in the day, we touched on this rumor a little bit here. Now, it’s time to take a closer look at what Apple Inc. (NASDAQ:AAPL) may be trying to do with this technology within the next couple of years.
CNET, quoting information from Munster, said that Apple, “the iPhone maker may tap into NFC or a different technology to cook up a digital wallet for iOS users.”
Munster believes that Apple Inc. (NASDAQ:AAPL) may dive into the digital wallet market soon enough, with its first introduction alongside the iPhone 6 during the first part of 2013.
While other companies are considering the same, Apple has a leg up on the competition in one key area: the number of users at its fingertips. In other words, the Cupertino-based company doesn’t have to look far to find users for its new service.
Right now, Apple Inc. (NASDAQ:AAPL) has roughly 500 million iTunes users, all of which who have an account linked to their credit card. Seems like an easy enough transaction to a digital wallet service, doesn’t it?
If you don’t think this is a big deal consider this: “Munster believes is the largest database of payment information owned by any one company.”
When and if Apple decides to move ahead, they are going to be faced with many of the same challenges as its competitors.
For example, a mobile payment system would call for the company to get more involved in the mobile ad industry. This may be major territory for Google, but according to Munster, “Apple Inc. (NASDAQ:AAPL) has been a relatively small player in the area of mobile advertising.”
And of course, you cannot overlook the fact that security is a major concern with any type of mobile payment system. In the article, Munster is quoted as saying the following concerning the potential for an Apple digital wallet:
“If Apple can recreate the wallet, it would create tremendous stickiness in terms of iOS mobile products.”
The key word in that quote is “if.” Only time will tell if the company has what it takes to make waves in this tricky segment of the market. To learn more about what other innovations Apple may have in its pipeline, check out our latest slideshow here: Apple’s 15 Most Mind-Blowing Patents
Would you use a digital wallet service from Apple ? Share your thoughts in the comment section below.
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DISCLOSURE: I have no positions in any stock mentioned.
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