Apple appears to be making considerable steps toward smartphone based payments.
Patents, reports, and rumors are coming together to provide a continually increasing body of evident that suggests that the iPhone 6, which is expected to be released this fall, will include a mobile wallet to allow owners to be able to use their smartphones to pay for purchases.
This will make Apple a rather late entrant into the mobile payments market space.
Despite this fact, a mobile wallet in an i-device is likely to have a massive impact on the small but growing trend. Many people believe that this is the addition required to bring mobile payments into the mainstream. This may also help to encourage increased use of struggling services such as Isis and Google Wallet.
More evidence of a possible iPhone 6 mobile wallet was generated by Apple’s talks with Visa.
Reports have now been published that have indicated that Apple has entered into discussions with Visa as well as a number of other credit card companies regarding the creation of mobile payments partnerships.
If the electronics giant does go ahead with this technology, it would mean that users of its smartphones would be able to use their devices to be able to complete mobile transactions. Therefore, even when purchasing physical goods in brick and mortar retail stores, they will still be able to pay at the checkout counter using the device instead of a credit card.
At the same time a digital wallet would also give the upcoming iPhone’s users the opportunity to use that same type of transaction to pay for products that they purchase online and in apps. This would convert the smartphone into a direct connection to credit card companies for making payments. This could help consumers and retailers, alike, in being able to save money by avoiding the third party transaction processing fees that are paid in traditional credit card based purchases.
The main focus for Apple mobile wallets would be on security, as the company has reportedly added a secure hardware element to their upcoming devices, though it is unknown whether that will be based upon NFC technology or another option altogether.
The Australian bank is the first bank in New Zealand to try out Host Card Emulation (HCE) m-payments.
According to Westpac, it is utilizing Carta Worldwide’s HCE technology for its three month NFC-enabled mobile payments trial in New Zealand, and the payments systems is compatible exclusively with Android smartphones equipped with the most recent software updates.
Westpac hopes to launch a digital wallet in the country.
Shane Howell, the chief product officer of Westpac said that the trial is the initial steps toward a fully digital wallet in the country and that they expect their mobile wallet will be available to customers in early 2015.
Howell stated that “We already use our smartphones to organize so many aspects of our lives, so using them to make payments is just a natural extension of this.” He added that the three month test is only the “first of four key components we are looking to develop that will make up a digital wallet for Westpac customers.”
He explained that there are additional components that the financial institution is considering incorporating into its digital wallet, such as loyalty programs and public transit transport cards. It is even considering a form of ID, such as a driver’s license. Howell said that what Westpac is working toward achieving is a “true digital wallet experience” that is easy for customers to use and that is safe.
Mobile payments security is an essential feature of the digital wallet.
Westpac developed the mobile wallet in a partnership it made with Carta Worldwide, a company known for global payments innovation. The Australian bank has said that for its digital wallet, security is key.
Rui Mendes, Carta’s chief technology officer said that with Carta’s advanced and layered security, every single mobile transaction that is made is protected. HCE allows for secure mobile transactions that are compatible with contactless terminals. The company’s cloud-based solution is equally as secure as using plastic cards because of its data security advancements and its app features, such as mobile PIN.
The three month mobile payments trial involves a selection of 40 Westpac customers and employees across New Zealand.
