Apple reportedly interviewing execs for new payments business


Re/code reports Apple (AAPL +1.2%) "has been interviewing senior payments industry executives to push ahead on a plan to build an electronic payments business." E-commerce chief Jennifer Bailey is said to be leading the initiative. "Their ambitions are very, very serious," says one source.

The WSJ reported in January Apple is "laying the groundwork" for a mobile payments push, albeit while leaving many questions unanswered regarding the kinds of transactions that will be covered, and which payments technologies will be used. Tim Cook later stated Apple is "intrigued" by the mobile payments space.

Apple has ~600M iTunes accounts (most of which are linked to credit cards) to leverage for a payments initiative, as well as complementary technologies such as fingerprint sensors and the iBeacon positioning platform. Android support (something Apple is reportedly considering for iTunes) would do a lot to extend the service's reach in markets where Google's OS dominates.

Re/code previously reported PayPal (EBAY -0.1%), whose services Apple could end up competing with, is pitching Apple on offering white-label solutions for its payments effort. But sources noted it's unlikely Apple would have any need for them.

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Comments (21)
  • Philip Marlowe
    , contributor
    Comments (1599) | Send Message
     
    It is obvious that the next big push for cellphone co's will be payments. I think the winners will be the companies that make nfc chips (NXPI, SWKS) and also SYNA because of their new fingerprint sensor business. It is true that SYNA does not sell to apple, but lets face it, if apple gets into payments, Android will as well.
    21 Apr 2014, 04:09 PM Reply Like
  • Jack Baker
    , contributor
    Comments (1392) | Send Message
     
    The only problem with your thesis is that Android users don't buy stuff with their mobile devices. 85% of all global mobile commerce is done on an iOS device. So, if you interested in a pick and shovel play on the other 15% then maybe SYNA is your play. A lot of retailers are abandoning NFC already as a failed experiment, so...maybe not.
    21 Apr 2014, 05:28 PM Reply Like
  • EFN711
    , contributor
    Comments (6) | Send Message
     
    Just another reason that Apple should hire Elon Musk; the synergies keep growing. Musk would be the new Steve Jobs, apple could benefit from the battery factory, Musk could use the capital build it. Tesla cars would be apple enabled. Apple would benefit from Musk's vision. All the stocks would go through the roof. The only rub is how to handle spaceX?
    21 Apr 2014, 04:26 PM Reply Like
  • Yesterdays_news
    , contributor
    Comments (2155) | Send Message
     
    "Musk would be the new Steve Jobs"

     

    Hardly!

     

    How is the GigaFactory and Hyperloop pipe dreams going???

     

    SpaceX is the only serious company Musk has, funny there is no stock for it. The others are way overvalued and their stock pumped daily by fanboys.
    21 Apr 2014, 06:25 PM Reply Like
  • King Rat
    , contributor
    Comments (1831) | Send Message
     
    Tesla's share of the auto market is practically zero. Their share of the ZEV market is not growing. Why would Apple buy a company half the market cap of GM just to put their software and hardware in a few THOUSAND cars? Why not double that, buy up GM, and put their software and hardware in a few MILLION cars?

     

    Besides, right now Tesla gets their battery tech from other companies. Apple would do better to buy those smaller companies for 1/100 the price of Tesla if they so desired it that badly?

     

    Elon Musk is great at starting ideas, but whether in marriage or in business, he has never seen anything through.
    23 Apr 2014, 07:22 PM Reply Like
  • EFN711
    , contributor
    Comments (6) | Send Message
     
    Just another reason that Apple should hire Elon Musk; the synergies keep growing. Musk would be the new Steve Jobs, apple could benefit from the battery factory, Musk could use the capital build it. Tesla cars would be apple enabled. Apple would benefit from Musk's vision. All the stocks would go through the roof. The only rub is how to handle spaceX?
    The financing side is well know to Musk since he developed PayPal as the basis of his fortune
    21 Apr 2014, 04:26 PM Reply Like
  • Yesterdays_news
    , contributor
    Comments (2155) | Send Message
     
    "The financing side is well know to Musk since he developed PayPal as the basis of his fortune"

     

    More disinformation spewed by Musk fanboys.

     

    Musk did NOT invent PayPal. The company was merged with X.com. Musk is NOT an inventor but manages money, people, and products very very well. He hired the best people in their fields in the three companies he started and let them do the designing/inventing while he did/does the viral promoting.

     

    He is no Steve Jobs, but just another lucky dot.com huckster like Mark Cuban. Maybe they will also put Musk on Shark Tank?

     

    http://bit.ly/1mxemF3
    http://bit.ly/1mxemF5
    http://bit.ly/1mxepRv
    21 Apr 2014, 06:44 PM Reply Like
  • Hank890
    , contributor
    Comments (2267) | Send Message
     
    It is not just a question of getting "into payments",...like turning a switch,.....that part is a no brainer. The difficult part is to bring something critically new to the payments equation, a REAL value-add, an edge. Like, for example, lower costs for retailers,...AND, much tougher security measures to protect both banks and retailers, as well as consumers; PLUS, revitalized and streamlined ease of use, across not only brick and mortar establishments, but online, too.

     

    If Android is going to provide all this credibly, and maintain top performance...then they'd better solve their tardy 64-bit conundrum asap. Of course, they just missed on REVs,...I hear. Google's eggs are almost all in the advertising basket. Right? Are they depending on Ebay to deliver payments? REALLY?

     

    Fact is, also, NFC is not the only technology, or even the best method adaptable for improved payments systems, although most Europeans will swear to you it is. Let them swear.
    21 Apr 2014, 04:33 PM Reply Like
  • Broker 66
    , contributor
    Comments (2) | Send Message
     
    I don't think they will bring down the cost to merchants as Paypal gets away with robbery.
    Jack Dorsey and square tell nobody about the 3.50% charge for card not present actually 3.50% plus 15cents Market rate 2.20 with couple of higher cards.
    Charge on returns both sides and do not abide by a code of conduct so can raise merchant rates at any time
    You never see this fact in the million spent by square.
    Plus they are pushing hard on the unsophisticated end of the payments market
    Read the fine print carefully !!!

     

    These guys are not pretty people they are living the dream and lower costs is not likely part of the dream
    22 Apr 2014, 03:20 PM Reply Like
  • HuFlungDung
    , contributor
    Comments (275) | Send Message
     
    Interviewing senior execs only now?! What have they been doing all these years?

     

    This is one of the obvious ideas that has been available to Apple. The speculation has been around for at least 2-3 YEARS about an iPayment solution. But if they are only now beginning to look for someone to lead the effort, that means what? Several more years before seeing a solution hit the market?

     

    Why is Apple dragging its feet on this and moving in slow motion?
    21 Apr 2014, 04:53 PM Reply Like
  • jjkiam
    , contributor
    Comments (408) | Send Message
     
    One has to assume that this is not just the beginning of their entry into this field but at least the 8th inning. Higher profile senior financial payments executives will probably be brought it at the end to help run the launch and in particular secure enterprise partners. The design and technical infrastructure buildout has probably already taken place.
    If you are correct in your concerns then it really looks bad for Apple's future
    21 Apr 2014, 05:16 PM Reply Like
  • rrose39
    , contributor
    Comments (1077) | Send Message
     
    i'm just as outraged as you are! let's all sell our positions now!

     

    /snark off
    21 Apr 2014, 05:30 PM Reply Like
  • Braeburn
    , contributor
    Comments (1754) | Send Message
     
    Did Hu forget to take your blood pressure medicine again today? Hypertension is no laughing matter. Hu can significantly reduce stress by staying off the Apple Blogs. An Apple a Day is definitely NOT recommended for Hu.
    22 Apr 2014, 01:13 AM Reply Like
  • uavflyer
    , contributor
    Comments (4) | Send Message
     
    Apple could have had had Microsoft sitting on a corner with a tin cup many years ago, but they insisted that you could only have their "superior" software if you bought their "mediocre" hardware.

     

    Microsoft (and now Google) will let anyone run their software as long as they support it, anyone can build it.

     

    This allowed Intel to dominate the microprocessor market (because they had the money to advance the technology) and Motorola to trail further and further behind, until Apple had to finally go over to Intel. ARM only has an edge in power limited mobile platforms, but Intel is quickly addressing that with their Atom processors that are pretty close and getting better.
    21 Apr 2014, 08:21 PM Reply Like
  • ultraz2
    , contributor
    Comments (1086) | Send Message
     
    Problem is ,it's not rocket science. A top executive could have the payments process on line in one month. And not make a career out of it. Apple needs to get on the ball and stop dragging it's feet. They are way too slow in implementing programs. And now the analyst are raising the bar for Apple right before earning ,so that Apple fails to meet expectations again. Wall street apparently doesn't want main street to ever trust and invest in WALL STREET AGAIN.
    21 Apr 2014, 11:43 PM Reply Like
  • ultraz2
    , contributor
    Comments (1086) | Send Message
     
    Tim---- STOP BEING INTRIGUED get it done.
    21 Apr 2014, 11:54 PM Reply Like
  • ultraz2
    , contributor
    Comments (1086) | Send Message
     
    Analyst should be prohibited by the SEC from raising or lowering the bar for any stock within 45 days of an earnings report.
    21 Apr 2014, 11:59 PM Reply Like
  • Value George
    , contributor
    Comments (287) | Send Message
     
    Nahh... That would take all the fun out of the run up to earnings announcement day. Besides, an analyst who changes her/his estimate two days before the announcement is revealing more about self than about the stock. IMHO, anyway.
    22 Apr 2014, 02:14 PM Reply Like
  • ultraz2
    , contributor
    Comments (1086) | Send Message
     
    Apple volume dring up . Share buybacks starting to have some effect. As volume of shares for sale start to dry up. This will start to drive up share cost of available shares.
    22 Apr 2014, 12:23 AM Reply Like
  • 2puttwo
    , contributor
    Comments (657) | Send Message
     
    I hope Jamie Dimon is on their list. That would be a dream come true.
    22 Apr 2014, 03:01 AM Reply Like
  • evabrain
    , contributor
    Comments (39) | Send Message
     
    Cajoling game developers to produce OS-exclusive titles has been a popular strategy among gaming console makers. Now, Apple Inc. (AAPL) and Google Inc. (GOOG) are making similar moves for their mobile platforms, according to the Wall Street Journal. The companies are contending for exclusivity, or priority, of top-tier game titles: they want them on their respective app stores before anyone else.

     

    Apple's late CEO Steve Jobs had declared a “holy war” on Google in 2011, and with the latter’s mobile operating system now a fixture in about 75% of all smartphones globally, the war is intensifying with further integrations of apps and exclusive deals. Initially, apps were developed first for iOS due to its ubiquity and the ease of developing apps for the operating system. Further you can read more at http://bit.ly/IOS-Andr...
    22 Apr 2014, 07:38 AM Reply Like
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