Mobile payment systems look set to be the next big thing in the tech industry according Allison &Partners Senior Vice President, Kevin Nabipour, in an interview on CNBC. His remarks come in the wake of Apple Inc. (NASDAQ:AAPL) reportedly signing agreements with Visa Inc. (NYSE:V), MasterCard Inc. (NYSE:MA), and American Express Company (NYSE:AXP), a move that will see the transformation of iPhones into mobile wallets.
Apple Inc. (NASDAQ:AAPL)’s mobile payment system will allow iPhone users to make payments using their phones without necessarily having to carry cash or credit cards
“I think it is quite clear that mobile payments are something that we are going to have to deal with from a technology standpoint, from a manufacturer standpoint, especially because frankly it is an inevitability at this stage […],” said Mr. Nabipour.
Mobile payment platforms are expected to grow by 35% annually, something that Apple Inc. (NASDAQ:AAPL) looks destined to benefit from with the new partnerships with some of the largest money transfer platforms. The fact that platforms like Google Inc. (NASDAQ:GOOG)’s Wallet and PayPal have not been widely accepted creates an avenue from which Nabipour expects Apple to benefit a great deal going forward.
There is no doubt that Apple will be successful with its innovation considering the number of features that it has launched in the past that have gone to be a hit, according to Mr. Nabipour.
“Frankly, if you look at features that they have launched before in the past like Siri. It’s become one of those things where Apple Inc. (NASDAQ:AAPL) has to continually try to innovate and try to experiment what kind of features they are going to launch alongside new releases for their iPhone products […],” said Mr. Nabipour
Taking into consideration the fact that Apple Inc. (NASDAQ:AAPL)’s marketing team is one of the best in the smartphone space, a new mobile payment system is expected to considerably boost iPhone sales in the long haul.
Retailers have been reluctant in the past to adopt various mobile payment schemes, but given Apple Inc. (NASDAQ:AAPL)’s market share, this looks certain to change. Analysts also consider that Apple’s mobile payment system will play a considerable role in retaining customers, as most of them will be reliant on the available hardware and software ecosystem.
Carl Icahn‘s Icahn Capital LP is a large shareholder of Apple Inc. (NASDAQ:AAPL) holding approximately 52.76 million shares as of the end of the second quarter of 2014.