Will Apple Enter the Mobile Wallet Fight?
Apple is rumored to be making plans for a mobile wallet to be launched this fall. This would allow current iPhone users to pay for physical items with their phones through an Apple-based software program.
Apple is currently talking with Visa about payment processing in an attempt to bypass a third party process with a high transaction fee. If this partnership is successful, consumers and the company alike will be able to save money using the Apple mobile wallet.
In order to protect payment data on the phone, rumors suggest that Apple would incorporate its “Secure Enclave,” which is built right into the A7 processor. This security element is made to protect a user’s financial information and other sensitive details without giving any control over to the cell phone companies. The Secure Enclave works independently from other parts of the phone and is inaccessible in any other area in the system. This is how it protects sensitive data.
The new mobile wallet would most likely be set up through iTunes, since millions of users already have their payment information stored on their iTunes account. The wallet is also expected to work with Touch ID.
About Bill Hardekopf
Bill Hardekopf is the CEO of LowCards.com and covers the credit card industry from all perspectives. Bill has been involved with personal finance for over 15 years. He is a frequent contributor to Forbes, The Street and The Christian Science Monitor.