BGGMobile helps B2B and B2C companies manage mobile changes. Topics include mobile engagement, mobile payments, user experience. Here is a brief outline of key issues to consider regarding iPhone 6 and mobile payments.

1. Will Apple Dominate
Mobile Payments in 2014?
By Sheila Bacon
Chief Mobile/Digital Strategist
April 2014

2. Apple: Historically Slow to
enter Payments
 How might this change in 2014?
 Wall Street Journal notes Apple will leverage
iPad and iPhone via iTunes Store for mobile
payments. (Jan 2014)
 Short term PayPal may be providing a white
label edition of its payment platform to Apple
 Apple may deploy additional part of its
payments ecosystem in 2014
 Whatever Apple does is critical news for
Retailers, Banks and Consumers

3. Apple’s Payment Assets are
Deep
 Apple will create a payments platform to
offer superior payments experience for
users on mobile devices utilizing:
 Vast payment card database
 iTouch fingerprint sensor
 iCloud keychain
 Airdrop for person-to person payments
 iBeacons for retail engagement
 Passbook storage data/ vault

4. Identity Management is Critical
for Successful Payments
 In July 2012 Apple acquired AuthenTec a
developer of identity management
technology using fingerprint sensors on PC’s
as well as mobile devices.
 iCloud keychain can store safari browser-
based usernames and passwords as well as
credit card details in a digital vault.
 Airdrop allows users to share via IOS-7 location
based data that could be used for person-to-
person mobile payments

5. Device Management plays a
key role
 Apple’s iBeacons enable mobile devices
to discover and communicate using BLE
(Bluetooth Low Energy)
 iBeacons can support retailer payments
and loyalty (coupon) marketing
 iBeacons can easily become a payment’s
product marketing information channel
for Apple.

6. Possible 2014 Apple
Payments Roadmap
By leveraging Apple’s iTunes payments interface
to a broader retail and consumer base, Apple will:
1. Leverage Apple payments
acceptance online
2. Facilitate Apple payments in physical
stores
3. Provide a disruptive play in payments
and lending

7. Critical: How will NFC Play in
the Payments Facilitation?
 Apple filed a patent in January 2014 titled
“Method to Send Payment Through
Various Air Interfaces without
Compromising User Data” in which it
describes how NFC could provide user
authentication in conjunction with other
Wi-Fi or Bluetooth encrypted card data to
facilitate payment processing and
transaction authorization.

8. Payment Facilitation
 Apple has ability to use it’s payments
technology at checkout by Retailer POS
(Point-of-sale) systems and for
online/mobile payments. The key will be
to reduce consumer confusion by using
an existing Credit Card (already on file).

9. Will Apple Increase or Reduce
Payments Disruption?
 At the heart of this process, Apple may
introduce a financing system integration
engine to align POS, online store checkout
platforms and other user interfaces. The eco-
system for those partnerships are still being
defined and may engage other than
traditional credit card players. This would
directly affect interchange or card
transaction fees, could also reduce merchant
payment costs. (Watch this SPACE!)

10. Device Management plays a
key role
 Will Apple’s iPhone 6 enable
NFC? CEO Tim Cook told
investors recently:
“You can tell by looking at the
demographics of our customers
and the amount of commerce
that goes through IOS devices
versus the competition that it’s a
big opportunity on the platform”
When the new iPhone 6 releases in 2014,
we expect it to have additional payments functionality.

11. Additional Information
 BGG Mobile is a mobile payments
consulting team available to assist with
mobile technologies and user
engagement strategies.
 For more information please feel free to
contact us via email at
Sheila@bggmobile.com
Bggmobile.com