Cautious on Apple's Plan to Extend Digital Payment Processing Business [View article]
There is potential for Apple to do better than others here. Micropayments - Apple bundles multiple $1 track sales into a single credit card transaction to save CC transaction fees. If they do this for 3rd party sales too, the $1-$5 transactions would be MUCH cheaper via Apple than with PayPal.
Cautious on Apple's Plan to Extend Digital Payment Processing Business [View article]