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How big a thing could Touch ID mobile payment be? China alone hit $1.6 trillion last year

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With Tim Cook having as good as confirmed that mobile payment via Touch ID is on the way, numbers released by the People’s Bank of China and reported in TechNode provide an insight into just how big the mobile payment market could be. Total mobile payments in China last year hit 9.64 trillion yuan – equivalent to $1.59 trillion.

Mobile transactions on just one of China’s mobile payment services reached 25,000 per minute. While China has a population of 1.3B, contrasted with around 317M in the USA, and many of those in China use a mobile device as their primary Internet connection, it still illustrates what a huge opportunity iPhone-based payments could represent for Apple.

It’s been suggested that Apple’s approach may be to allow payment to be made via iTunes accounts, effectively turning Apple into a bank – a prediction I made last September. Using iTunes as a payment method would mean that customers would not have to hand over card details to retail stores. In the light of recent large scale card compromises at Neiman Marcus (1.1M cards) and Target (2M cards), this may well prove a strong reason for iPhone owners to use the service.

Via TNW

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PayPal feels the threat from Apple’s mobile payment plans, says it ‘wants to help’

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PayPal is clearly feeling the threat posed by Apple’s plans to use Touch ID to facilitate payment for physical goods from other retailers: re/code is reporting that the company has offered to help.

PayPal is essentially willing to white label parts of its payment service to be used in an Apple mobile payments system — anything from fraud detection to back-end infrastructure, even possibly down to the processing of payments.

“They’re telling them, ‘We’ll do it in the background,” one of these people said. “Basically, it’s just, ‘We want to be a part of this.’”

The plea is likely as desperate as it sounds, with two of the three payment industry execs re/code spoke to saying it’s unlikely Apple has any need of PayPal’s assistance. Apple has over 575 million iTunes accounts, most linked to credit cards, and already allows purchases from its own retail stores using the Apple Store app on iPhones. Apple also has patents in place for payment via both NFC and Bluetooth electronic wallet systems, so there doesn’t appear to be any part of the process the company couldn’t handle unaided.

PayPal’s relationship with Apple seems set to remain limited to that of a payment option for iTunes and online store purchases, and a reseller of iTunes gift cards.

Tim Cook as good as confirms mobile payment via Touch ID on the way

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When Touch ID was first rumored, there had been much speculation about whether the iPhone 5s would act as an electronic wallet, with payments to retailers authorized by fingerprint. While that hasn’t yet happened, it does now seem clear that it’s on the way.

Asked about mobile payments during yesterday’s earnings call, CEO Tim Cook gave what is, in Apple terms, a surprisingly direct response.

The mobile payments area in general is one we’ve been intrigued with. It was one of the thoughts behind Touch ID […] it’s a big opportunity … 
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Starbucks confirms that its iOS app stores passwords in plain text

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Starbucks has confirmed a finding by security researcher Daniel Wood that both username and password in its iOS app are stored in plain text.

It’s not the big deal some are making it out to be – to make use of it, someone would need physical access to your unlocked iPhone, in which case you likely have bigger things to worry about than someone being able to order tall skinny lattes on your dime. Additionally, as Engadget observes, a far easier hack by someone with access to your phone would simply be to take a photo of the on-screen barcode used to authorise payments.

All the same, it is pretty poor design on the part of a payment app from a major company, and it’s surprising that Starbucks apparently has no plans to fix it with an updated app.

Why Touch ID is bigger news than any of us appreciated

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Touch ID is far, far more important than most people have realised – the core message behind a Quora post by the CEO of a card payment service. We can expect to learn far more “in the next few months, and that’s likely to eventually include both Touch ID Macs and use of the fingerprint system for mobile payments.

In the torrent of the billions of words already written about Touch ID very, very few people have really understood just how revolutionary this really is.  Apple not only has developed one of the most accurate mass produced biometric security devices, they have also solved critical problems with how the data from this device will be encrypted, stored and secured.

Brian Roemmele, CEO of 1st American Card Service, said that Apple’s attempt to solve the problem of how to develop a truly secure access system goes all the way back to a patent application in 2008, but it was only through the A7 chip – specifically created by ARM with mobile payment security in mind – that the company finally had a gold-standard solution. And its applications will go far beyond iPhone unlock and iTunes purchases … 
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Square Wallet 3.0 just released: faster checkout than ever

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Square has just released a redesigned version of their Square Wallet, their local directory and checkout app. By opening up the application (or setting the app to auto-check in when you’ve entered your favorite store), the cashier can see your name on the Square Register app and take your payment without having to swipe a credit card. Prior to the newest 3.0 version, users had to open the app, find the store they’re in, and press the “Pay Here” button. Now, the last step has been taken out. Just tapping on the store checks you in and puts you on the customer list. For Starbucks locations, tapping on the location pops up a very large QR code that can be scanned to pay.

The new design is very media-rich, with pictures from the merchants taking front stage. Rather than having a table view of the local vendors, it takes on a gallery design to show the logos and products. This is definitely a much-welcomed update.

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Google teases ‘next version’ of Google Wallet, gauges interest among iOS users

Google is teasing the next version of its Google Wallet service today as carriers team up to launch their own ISIS mobile wallet competitor. What happens when requesting an invite to the new Google Wallet is interesting… Google asks users to select what device they use: Android, iOS, and Other. 9to5Google has the full story.