19 October 2017

Visa token service key to Apple's mobile payments plans - analysts

05 August 2014  |  12488 views  |  3 Apple iPhone

Analysts at Pacific Crest Securities (PCS) have joined the Apple mobile payments guessing game, speculating that recent security moves by Visa will see the iPhone 6 go contactless.

Last month reports surfaced claiming that Apple is in talks with Visa ahead of a potential mobile wallet launch when the iPhone 6 arrives this autumn.

In a report, seen by Barrons, PCS analysts say: "We think a partnership between Apple and Visa would make strategic sense and believe an announcement could happen as early as this fall."

The report argues that the spur for collaboration could be Visa's new token service, which replaces the 16-digit number found on plastic cards with a numeric substitute that can be stored directly on mobiles, facilitating transactions without sharing sensitive information.

In a note to clients, seen by MarketWatch, one of the report's authors, Josh Beck, writes: "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."

However, while the PCS report says that Visa's new token technology offers a "clearer path for Apple to become a major player in mobile payments" the firm cautions that "we still see relatively little opportunity to generate profits that would be meaningful at Apple's scale".

KeywordsEFTPOS

Comments: (3)

A Finextra member
A Finextra member | 05 August, 2014, 15:27 Well now, tokenisation used to be the bees knees. So, it has come back into favour, a move supported by us here at Chasm Mnagement Limited, and features as part of our overhaul plan for financial services. BUT, there always is one, tokenisation needs a bit more consideration than that. 1. Where does the token get replaced? How far into the depths of the recipient? 2. How does the tokenisation and detokenisation databae get synced and how often? 3. How long is the token vLid for? 4. What about passing the tokenised data to a recipient who not part of the token club? Particularly, will it work cross-border? And ofq course, as we are used to saying here, it is I advisable to,junk a Chasm in more than one bound! This tokenisation could and should be extended to wrap the participants in an envelope that provides PCI-DSS compliance freedom within it. As does our design. Of course. End of gratuitous plug.
Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Chris Yaldezian
Chris Yaldezian - IBM (Software Group) - San Ramon | 05 August, 2014, 20:08

More speculation on what Apple might do.  No one knows what they will do, except maybe Apple higher-ups.  So stay tuned. Maybe APPLE, IBM, VISA, and someone else, will announce a new joint venture or partnership revolutionizing the payments space.  Maybe.  But, probably not. Most of payments, has been evolution, not revolution.

1 thumb up! 1 thumb up! (Log in to thumb up)
Otmane El Rhazi
Otmane El Rhazi - Civil Courts - Paris | 05 August, 2014, 22:03

This is a step forward in the security space. A token key is a credential that could be decrypted and in which case a security flow will rise. I would most likely be safer if we can cross the gap and used digital finger prints.

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Apple talking to Visa about mobile payments - report

Apple talking to Visa about mobile payments - report

24 July 2014  |  16468 views  |  14 comments | 30 tweets | 24 linkedin
Apple Safari gets credit card scanning feature

Apple Safari gets credit card scanning feature

06 June 2014  |  11775 views  |  3 comments | 26 tweets | 23 linkedin
Apple circles payments with TouchID

Apple circles payments with TouchID

03 June 2014  |  13497 views  |  8 comments | 28 tweets | 29 linkedin
IPhone 6 to get NFC - Morgan Stanley analysts

IPhone 6 to get NFC - Morgan Stanley analysts

21 May 2014  |  11349 views  |  7 comments | 18 tweets | 32 linkedin
Apple expected to announce support for NFC and mobile payments

Apple expected to announce support for NFC and mobile payments

11 April 2014  |  20308 views  |  12 comments | 36 tweets | 35 linkedin
Apple preparing to move into payments - WSJ

Apple preparing to move into payments - WSJ

27 January 2014  |  12459 views  |  3 comments | 29 tweets | 28 linkedin
Google Wallet comes to the iPhone

Google Wallet comes to the iPhone

19 September 2013  |  10314 views  |  4 comments | 22 tweets | 14 linkedin

Related company news

 
visit www.vasco.comvisit www.fivedegrees.nl

Top topics

Most viewed Most shared
Ripple looks to drive bank adoption with $300m XRP rebate programmeRipple looks to drive bank adoption with $...
15493 views comments | 12 tweets | 4 linkedin
Swift positive on blockchain, but big challenges remainSwift positive on blockchain, but big chal...
8690 views comments | 16 tweets | 22 linkedin
hands typing furiouslyHow artificial intelligence can deliver a...
8304 views 0 | 8 tweets | 9 linkedin
satelliteGates Foundation backs Ripple collaboratio...
7762 views comments | 13 tweets | 10 linkedin
IBM uses blockchain to improve cross-border payments processingIBM uses blockchain to improve cross-borde...
6953 views comments | 9 tweets | 17 linkedin

Featured job

circa £250K total package
London

Find your next job