Apple's Next Big Strategic Opportunity Could Be Mobile Payments

When an analyst asked Steve Jobs during Apple's aftermost balance alarm what he affairs to do with Apple's $50 billion in cash, he replied that he wants to accumulate Apple's “powder dry” in case “one or added cardinal opportunities . . . appear along.” Speculation started anon about who Apple could shop for with all that cash: Facebook, Sony, Adobe?

But Apple never makes huge acquisitions. It tends to accomplish abate aptitude and technology acquisitions instead.

Apple's accounted absorption in adaptable payments startup BOKU would abatement into that pattern. The actuality that it is in M&A discussions with BOKU doesn’t beggarly a accord is activity to happen, but it does beggarly that Apple is actual absorbed in adaptable payments.

Whether it builds or buys, or does a little bit of both, adaptable payments could be a huge befalling for Apple aural the abutting few years.

Imagine if your iPhone became your wallet? The dream of axis adaptable phones into wallets has been pursued for a continued time by abounding companies, but Apple is in a different position to accomplish adaptable payments added mainstream. Apple already handles payments actual able-bodied through iTunes, which boasts 160 actor alive acclaim agenda accounts. PayPal alone has 90 million.

Payments will alpha with agenda goods—songs, movies, apps and in-app purchases. Apple already does all of this today through iTunes, which is one of the best micro-transaction accession systems around. What if you could allegation those micro-transactions to your buzz bill aloof as calmly as you could to your acclaim card?

Then, it would be alike easier for Apple to advertise apps, songs, and movies through iTunes, abnormally to adolescent barter or those in developing countries who may not accept a acclaim card. (BOKU’s backbone is those carrier relationships).

Over time, those payments could advance from agenda and basic appurtenances to real-world purchases. Apple is not cerebration about abacus a near-field communications (NFC) dent into the abutting iPhone for nothing. The added bodies use their iPhones to absolutely acquirement goods, the added basal it will become.

Would Apple anytime booty the abutting analytic footfall and become payments processor itself? If it did that, it would be able to cut out the carriers from the adaptable payments equation. Swap the carrier bill with iTunes, and those fees the carriers allegation to action micro-payments go away. Apple can alpha charging those fees instead or canyon the accumulation forth to their iPhone-toting consumers, who will again be able to absorb added on being in the iTunes abundance and elsewhere. Your iPhone could be your wallet: Never leave home after it.