According to Marketwatch, an alliance between Apple and Visa could be in the works. Pacific Crest analyst Josh Beck said news of changes in Visa’s system, such as improved security, could allow tech companies to boost their mobile payment systems. He noted Apple in particular could really profit, stating, “After analyzing the payments, handset, enabling technology and Internet landscape, we think a partnership between Apple and Visa would make strategic sense.” Beck speculated than such an alliance could be unveiled “as early as this fall,” right before the expected iPhone 6 release.
Apple’s demographic consists of a large base of affluent users and customers which could fuel even more growth in mobile payments. Apple has the capability to leverage its affluent customers to add value via an improved in-store shopping experience. Apple’s mobile payments could operate like Passbook, the Apple app used for a range of mobile functions including in store coupons, on steroids. With over 800 million iTune accounts and credit cards on file, a new partnership with Visa, and Passbook, Apple could easily provide a highly scalable payments platform.
While this partnership is not set in stone, it would make sense for Apple to have a partner on the back end, and what credit company has more credibility than Visa? The corporate partnership would be a win-win, as it would benefit Visa to partner with an electronics vendor that has such well-off, dedicated customers. Though the alliance may or may not happen, it’s definitely something to keep an eye on in the coming months..