According
to recent news, Apple Inc. is now all set to collaborate with Visa in order to
have a partnership agreement regarding E-payments. Analysts at Pacific Crest
wrote in a note to potential investors that the two companies are likely to
make an announcement regarding their collaboration as early as this fall.
The
analysts claim that, “We think a partnership between Apple (AAPL) and Visa (V)
would make strategic sense and believe an announcement could happen as early as
this fall,” this venture would primarily focus on the upcoming generation of
iPhones. These iPhone would be combined together through a contactless payment
mechanism.
According
to the note by analysts at Pacifiic Crest “New security models could lower
adoption hurdles for mobile payments at physical retailers and expand the Visa
platform, enabling new commerce opportunities for technology giants, merchants
and issuers.”
Since
security in such matters is of utmost priority, and one cannot rely on measures
that are not secure hence it is a great initiate by iPhone to opt for Visa stock who would not only
provide a secure mechanism but would also encourage users to blindfolded opt
for such payments. Google and PayPal
also worked up a similar mechanism that allowed payments. Moreover they
claimed, “A combination of cloud-based (HCE) and physical (SE or TEE) seems
like a plausible security strategy for Apple.”. This would result in gaining
pace and further enhancing their token service.
Since the launch of iPhone 6 is round the
corner. Apple is trying its best to come up with agreements with several
companies to collaborate with them in bring about better services for the
phone.
This
venture will be a great opportunity for both the companies to explore their
potential and to come with innovation in the field of mobile payments. This
method will open gateways for Apple and Visa if the deal turns out the way
expected.
According
to Cramer who is the host of “MAD Money” on CNBC, “In the Visa call, which I
liked, Charles W. Scharf talked about the revolution is coming in mobile
payment and they keep thinking what is the handset; who is going to embrace it?
This one says it is going to be Apple,” moreover he even considered this
venture to become a game changer for both the companies
Hence
in a nutshell, the future seems bright for both companies with such ventures on
board.
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