Pacific Crest analyst Josh Beck said news of changes in Visa’s system, including improved security, could allow tech companies to enhance and expand their mobile payments systems.
He said Apple in particular could really cash in on the changes at Visa, telling clients in a note, “We think an Apple and Visa partnership could be on the horizon.”
“After analyzing the payments, handset, enabling technology and Internet landscape, we think a partnership between Apple and Visa would make strategic sense,” Beck wrote.
He speculated that such an alliance could be unveiled “as early as this fall,” in time for the expected launch of the iPhone 6.
Apple has a sizeable base of affluent users and customers which could fuel even more growth in mobile payments.
Beck argued that Apple “could leverage its affluent-skewed consumer base and credit card stockpile to add value via an improved in-store shopping experience.”
He also pointed to the potential of Passbook, the Apple app used for a range of mobile functions including using store coupons.
“Apple mobile payments could be Passbook on steroids,” Beck said. “Apple could use its large stockpile of iTunes accounts and cards on file (about 800 million), along with Passbook and a new token partnership with Visa, to provide a highly scalable payments platform.”
Analyst Roger Kay of Endpoint Technologies Associates said the speculated alliance “may or may not happen, but it’s a possibility worth exploring.”
“It makes sense for Apple to have a partner for the back end,” he told MarketWatch. “And it makes sense for Visa to partner with a device vendor so deeply entrenched with consumers.”
This article was culled from MarketWatch