3 weeks ago, we covered the rumors of Apple potentially jumping into the mobile payment market. Since then, Apple's moves have all but officially confirmed these rumors.
Till now their focus was on enabling payments for iTunes via mobile payments. Their revenue for iTunes sales is steadily climbing, while iPhone’s and iPad’s is declining. The part that interests us the most, is the whooping $4.4 billion in revenues reported for Q1 2014, for sales of non-Apple “stuff”, via Apple products. To put that into perspective, that’s double Zappos annual revenue ($2 billion). So you have to take note when Apple makes a move. Their latest work - the Touch ID Scanner - takes it to another level. As Business Insider claims,
Because it makes your phone almost completely secure, the iPhone suddenly become an almost perfect mobile payments device.
According to the Wall Street Journal, Eddy Cue, Apple's e-commerce chief, is focused on building a mobile payments business.
In parallel, Apple is setting a mobile retail marketing infrastructure across the U.S - called iBeacon (Read Forbes’ coverage of iBeacon here). Let’s try to connect the dots here. What is Apple really up to? They’re bringing in a major turning point for Mobile engagement and gearing up to take retail by storm. They’re aiming big and putting the infrastructure in place to nail the holy-grail-of-marketing - Closing the loop. They’re making it seamless and secure for the average smartphone user to make payments on their phones, and of course, then capturing the buyer’s info to target better marketing.