Fresh highs for Apple as payments reports dissected; eBay slips

Following reports Apple (AAPL +0.8%) is working on a mobile payments platform leveraging NFC radios, Touch ID fingerprint sensors, and 800M+ iTunes accounts, Stifel thinks Apple may have finally "cracked the code" for getting consumers to make offline payments with their phones rather than credit/debit cards.

Stifel: "With NFC and iBeacon to follow, we expect Apple’s payments product to be more focused on physical, brick-and-mortar retail than online ... We think Apple correctly sees a much bigger opportunity offline where consumer adoption is still negligible."

RBC sees a chance to create a loyalty points system for Apple products/services. Forbes' Mark Rogowsky thinks tech advances, Apple's scale, and the pending U.S. adoption of chip-and-PIN readers (will increase NFC reader support and make card payments slightly less convenient) amount to "a perfect storm" that can allow Apple's platform to succeed in spite of the failures of existing NFC solutions (Isis, Google Wallet, etc.).

PayPal owner eBay (EBAY -0.9%) is off moderately. PayPal has made a number of moves to expand into offline payments, but uptake has been limited. It handled $27B in mobile transactions last year, largely for online payments. Unlike Apple's solution (from all indications), PayPal's mobile payments offerings support both Android and iOS.

Reported Apple NFC chip supplier NXP (NXPI +0.7%) is adding to its recent gains.

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Comments (27)
  • Hardog
    , contributor
    Comments (17250) | Send Message
    Many CCs offer cash back etc. wonder how this will affect them. don't think AAPL would give any $ back.
    2 Sep 2014, 02:37 PM Reply Like
  • Tomal
    , contributor
    Comments (2485) | Send Message
    Use debit card then. Most use debit card for cash back, not credit card.
    2 Sep 2014, 03:21 PM Reply Like
  • chopchop0
    , contributor
    Comments (5265) | Send Message
    AAPL is likely going to compete with paypal and and offer simply a mechanism to link to your existing CC. So this should be a non-issue.


    The option will also probably be there to link to your bank account, like paypal, but personally, only a fool or someone with poor credit and no options would do that. No cashback and way more vulnerable.
    2 Sep 2014, 03:37 PM Reply Like
  • 426260
    , contributor
    Comments (134) | Send Message
    The payment system will probably use existing credit card accounts, if so, cash back offers should remain in tact. Apple does not appear to be financing the transactions; the banks backing the credit cards would provide the financing.
    2 Sep 2014, 02:48 PM Reply Like
  • Thepianist
    , contributor
    Comments (225) | Send Message
    The stock is going to sell on the release and then tumble going forward. iOS is just not secure. there is too many weakness.
    2 Sep 2014, 02:52 PM Reply Like
  • DWBowers
    , contributor
    Comments (1301) | Send Message
    How is iOS not secure?


    The shorts are trying desperately to spread misinformation about Apple as the stock trends higher.
    2 Sep 2014, 02:58 PM Reply Like
  • afterallthat
    , contributor
    Comments (120) | Send Message
    Too many weaknesses? Where'd you hear that?
    2 Sep 2014, 03:02 PM Reply Like
  • King Rat
    , contributor
    Comments (1819) | Send Message
    Too many weaknesses compared to Blackberry? Maybe. Compared to Android or Windows, however, iOS is pretty secure as long as the device stays locked.
    On Android even a simple notepad app virtually wants access to your contact list and phone records. That feels like getting hacked without even getting hacked.
    2 Sep 2014, 03:08 PM Reply Like
  • Tomal
    , contributor
    Comments (2485) | Send Message
    why sell on release? If iOS is not secure, the stock should fall now. Hell even after the celebrity leaks, AAPL is going up.
    2 Sep 2014, 03:22 PM Reply Like
  • smartone7
    , contributor
    Comments (588) | Send Message
    AAPL will run up after release while Blackberry tanks because they miss earnings estimates.
    2 Sep 2014, 04:19 PM Reply Like
  • blejsmith
    , contributor
    Comments (240) | Send Message
    You should really become an equity analyst, as I believe you have knowledge not known by the vast majority of WS. I've read numerous research reports on AAPL and not ONE of them have ever stated that iOS is "Just not secure". I think you may just have an edge there. The unfortunate part of being an analyst though is that you MUST substantiate your comments. So go ahead now, give it a shot, substantiate those comments. The investment firms are breathlessly waiting with that job offer if you can do it!!
    2 Sep 2014, 09:00 PM Reply Like
  • diaboliqueguan
    , contributor
    Comments (865) | Send Message
    so that you can buy in? FAT hopes.
    3 Sep 2014, 05:51 AM Reply Like
  • diaboliqueguan
    , contributor
    Comments (865) | Send Message
    smartone7, you should be smart not to poke the BBRY bulls. they are charging towards you for that negative comment on BBRY.
    3 Sep 2014, 05:53 AM Reply Like
  • smartone7
    , contributor
    Comments (588) | Send Message
    diaboloqueguan, yes but their horns are made of hot air.
    3 Sep 2014, 06:50 AM Reply Like
  • jjodice
    , contributor
    Comments (50) | Send Message
    Thepianist: Care to elaborate? Those are a number of pretty broad statements without any facts to back them up.
    2 Sep 2014, 03:01 PM Reply Like
  • Etoile Brilliant
    , contributor
    Comments (181) | Send Message
    Perhaps in the US where Chip & Pin penetration rates are 10 years behind Europe and Asia. Here in Sweden, there are about 4 mobile platforms in play. The winner will be the ones that offer (i) the banks complete security (ii) the customer low transaction costs (less than 0.5%) and universal acceptance.
    2 Sep 2014, 03:20 PM Reply Like
  • IncomeYield
    , contributor
    Comments (3715) | Send Message
    To not need a card would be useful/helpful.


    For now though, a PayPal account, a PayPal debit card, and 2-factor is a good available combo.


    AAPL should just buy PayPal. :)
    2 Sep 2014, 03:26 PM Reply Like
  • noobie111114444
    , contributor
    Comments (17) | Send Message
    Is it better to buy apple now or after drop on Sept 9 release?
    2 Sep 2014, 04:57 PM Reply Like
  • imvho
    , contributor
    Comments (411) | Send Message


    Cramer said "stop trading Apple! Just buy and hold it forever!"


    Forget about the short term, Apple is going up up up in the long term, despite what the "buy the rumor, sell the news" people say.


    Timing the market is nearly impossible.


    Between August and January since 2000, Apple has only gone down twice: 2008 (recession) and 2012 (fear, uncertainty, and doubt after Steve Jobs died). The rest of the time it has either stayed the same or gone up.


    Eddy Cue said that this fall has "the best product lineup in 25 years"


    If that's not enough to move the needle, I don't know what is.


    Buy Apple now.
    2 Sep 2014, 05:26 PM Reply Like
  • smartone7
    , contributor
    Comments (588) | Send Message
    If you know it will drop why ask such a foolish question?
    Or do you subscribe to buy high sell low?
    2 Sep 2014, 05:34 PM Reply Like
  • noobie111114444
    , contributor
    Comments (17) | Send Message
    My aim is to lose as much money as I can through the stock market. However, to make it a bit harder, I try to maximize losses within a 3 month period.
    2 Sep 2014, 05:38 PM Reply Like
  • smartone7
    , contributor
    Comments (588) | Send Message
    lol, well good luck-you won't need it.
    2 Sep 2014, 05:52 PM Reply Like
  • Seeker137
    , contributor
    Comments (426) | Send Message
    Anyone paying close attention knows that this spells BIG trouble for eBay/PayPal...
    2 Sep 2014, 05:21 PM Reply Like
  • petervukosavljev
    , contributor
    Comments (338) | Send Message
    ebay payment TANKED ... and this is why eBay purchased paypal.


    Ebay destroyed Yahoo auctions and Amazon Auctions ...


    Paypal works all over the world ... and Apple will working for what ...


    800 million iTune accounts ... how many are people under 18 years... and how many are active ..


    I think I might have a iTunes account ...
    3 Sep 2014, 10:03 AM Reply Like
  • tsabar
    , contributor
    Comments (154) | Send Message
    I hate the nerve of the ass..... who pretend they can dissect anything related to Apple. If there's anything to dissect, it's their egos and their supposed brains.
    2 Sep 2014, 05:33 PM Reply Like
  • Kyle Spencer
    , contributor
    Comments (1244) | Send Message
    We were discussing iPay back in February:
    2 Sep 2014, 07:44 PM Reply Like
  • babcock1
    , contributor
    Comments (9) | Send Message
    I think it's a good idea for AAPL to expand. They would not invest the time, energy or money to develop a concept without some idea on what it's worth. I see the same people with negative or sarcastic comments all the time. It means nothing, the proof is in the 48% growth AAPL has had in the last 12 months. I believe AAPL is the one company that sets the trends, and there are lots of haters.
    2 Sep 2014, 09:54 PM Reply Like
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