If Apple will introduce iWatch, on my wish list is payment app which contains my iTunes card info. With this app I could pay my purchases, accept my kids iTunes purchases but also on stores in real world, not digital cyperland. This app would also contain
real time info on stores where app is accepted.
For merchant this app would be interesting, if total offering is right. There are always few key questions what merchant asks if he accepts new payment system.
First one is price. If Apple is not greedy and charges 1-2 % service fee on top of card commision fees, that might be accepted.
Second is volume. Apple has already massive iTunes consumer mass and if critical mass can be transfered to new app users, even small merchant might be interested in to accept new payment method.
Third is how easy it is to integrate to current cash management system. If it requires minimal effort on labor and money, it has always winning possibilities.
Finally the last question is; what it is for me? Does it make one transaction faster or does these customers buy more than average consumer with cash or card. Or if merchant doesn't have new payment solutions, how much consumers stop buying from your store.
But I assume, these similar questions needs to be answered if any mobile payment app will be succesful.