by Cory Pattison, Product Manager
Now that the dust has settled around the release of the new iPhone 5S and 5C, investors seemingly are not too impressed with “the best iPhone ever.” Apple’s stock was down roughly 5.5% on Wednesday and closed at a month low. Bright new colors, a better camera aperture, and even a cheaper model were not enough to impress Wall St. However, did Wall St. overlook the one feature that has the chance to revolutionize society? Apple has been able to rewrite the books on the Smartphone and the portable media industries, singlehandedly create the tablet market, and even been rumored to be setting its sights on the TV market. With this release, Apple launched a quiet shot across the bow of another major industry and put it on notice.
Apple has opened the door on changing the landscape of the credit card industry with the addition of a biometric fingerprint scanner to the new iPhone. This added security feature may be the final step in moving your wallet out of your back pocket and into your mobile device. There are a couple of reasons I believe this will create a shift the mobile electronic payment dynamic:
• The owner’s fingerprint becomes the key and therefore the person becomes authenticated instead of the actual device or a piece of data on it.
• This added security layer should bring new companies into the market or pull in ones that currently reside more in traditional web-based transactions because of their need for a near-zero fraud rate.
• A new feature in iOS7, iBeacon, allows the iPhone to automatically communicate with nearby sensors, which could be used by a retailer to know that a mobile user has entered and could allow the end user to make a payment for services without having to visit a cashier.
We have to wait and see if financial companies and end users alike will acknowledge and adopt the new technology. Widespread development could push this into a mainstream, everyday staple of life and potentially turn this into the next thing we all look back on in 10 years and attribute the change to Apple. Could this be the demise of all of those plastic cards that you carry around? Does Apple have a game plan? Do you really want to bet against them?
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