iPhone To Become A Digital Wallet

With the iPhone 5S rumored to feature NFC technology, it’s no surprise that Apple is rumored to be planning to recreate the wallet by using the iPhone. Expected to be released within the next year or two, this is exactly what Apple needs in order to boost its stock price and market share. Although similar ideas already exist, such as Google’s Wallet, it’s not widely used, and because so, is not commonly used in retail stores.

Apple already has one huge advantage over Google if it were to pursue this idea, and that is that Apple currently has one of the largest user bases with linked credit or debit cards, through iTunes. The numbers are expected to be around 500 million, more than even Paypal, and the numbers are rising.

In order for Apple to succeed if they did add this along with the next release of the iPhone, insurance of security, along with partnerships with big name retail companies will be vital. Rumors have been suggesting that the S in iPhone 5S may stand for security this year, and that’ll be the key to Apple’s success with a digital wallet. Additionally, Apple already have some partnerships with Wal-Mart, Target, And Best Buy, and although this is a good start, Apple should look to increase this number sometime in the near future. If these companies can start incorporating digital payment within their retail stores, this will provide a big boost to Apple and sales of the iPhone.

iOS has already made steps towards this with the addition of Passbook in iOS 6, but this does not support retail transactions. And although Apple’s competitors such as Samsung and Microsoft have already implemented NFC technology into their smartphones, they have yet to make it that useful. When Apple decides to add it in the iPhone 5S, that needs to change. The future looks bright for it to do just that.

Can Apple pull it off, and have mobile payments become a common thing in retail stores?  Have your say in the comments.