Seeking Alpha

PayPal's (EBAY +1%) partnership with Discover (DFS +0.1%) will launch on April 19. That's well...

PayPal's (EBAY +1%) partnership with Discover (DFS +0.1%) will launch on April 19. That's well ahead of a prior eBay forecast for the end of Q2. The tie-up will allow PayPal users to make payments using a phone number and a PIN at ~2M stores handling Discover cards - that's almost certainly playing a role in MasterCard's sudden interest in digital wallet fees. But questions remain about whether users will embrace the concept - cashiers at a Home Depot carrying out a PayPal trial report even early adopters sometimes went back to card-swiping, viewing it as more convenient.
Comments (1)
  • Electronic wallets are the next major change in both credit card industries and portable electronics. Only Apple has control over the electronic OS for this type of transaction that is secure. Google/Android is too fractured to be secure. Wouldn't you rather have your private information secured in a device that even the DOD says they can not hack! Wait for the new phone with NFC, Fingerprint security and Apple's genius for making the human interface effortless. Note to everyone, only Apple has the money to go up against Visa/AMEX etc. Innovation is not limited to the hardware and that seems to confuse the pundits. Perhaps Apple has a use for their cash that is unexpected like turning their iTunes payment system into a credit card. PayPal just did this but had to borrow to make it happen and had to limit how far they made this concept work. Apple will not have the same problem considering their cash horde.
    Electronic payment is coming. If Apple has paid attention, then we will all have an iTunes account or what may become an Apple credit card.
    That's a lot better than giving back the money to the shareholders for short term stack price gains. It is illogical to think that Apple will not innovate in how they use their cash. iTunes made the iPod work. The closed system iOS was always Steve Jobs intent. It took the Supreme Court's ignorance to give us decades of Microsoft. Now it is up to Tim and Ive to get this product to market.

     

    p.s. Has no one noticed why the iPad Mini is mechanically already a phone? With the iWatch introduction, you can have your big screen and leave it in your brief case or purse and use the phone. Separating the processing from the user device has been inevitable.
    Yes, bet on credit moving to electronics. It is a lot more secure than handing your card to a waitress!
    12 Apr 2013, 08:11 AM Reply Like
DJIA (DIA) S&P 500 (SPY)