Why Apple Inc. Will Be The Future Of Online Payments, Not PayPal

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Why Apple Inc. Will Be The Future Of Online Payments, Not PayPal
<a href="https://pixabay.com/users/ElisaRiva/">ElisaRiva</a> / Pixabay

Could Apple Inc. (NASDAQ:AAPL) soon venture into a brand new territory? During a recent earnings call, the iPhone maker’s chief executive officer Tim Cook revealed there are over 800 million active user accounts on iTunes, and many of those accounts are connected to credit cards and debit cards.

The large number of users on iTunes offers possibilities

This large a number gives Apple Inc. (NASDAQ:AAPL) plenty of possibilities. Given online retail giant Amazon only has 237 million active customers, there is certainly a possibility Apple could soon launch a payment service similar to Paypal or Google Wallet. Cook has yet to confirm or deny such reports. If the Cupertino-based tech giant was to launch its own payment service, it would present a new opportunity.

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Earlier this week, Re/Code reported Apple Inc. (NASDAQ:AAPL) was interviewing candidates for management of a mobile payments team. It was reported Apple had two positions related to this new business, a business that would build upon the millions of credit cards it has access to. The website added, “Using those payment accounts as a foundation, the company is evaluating ways to make it easier for shoppers to buy physical products in apps and on the Web using their iPhones. The company is also considering how it might best help its customers make purchases in physical retail stores using only their phones and payment information stored in their iTunes accounts.”

Apple could change online payments business

Paypal continues to reign supreme in the online payment sector. However, Paypal does not have as many user accounts as Apple Inc. (NASDAQ:AAPL)’s (Paypal has 143 million active accounts). The main reason Apple’s number of users is larger is because the company has collected users since 2003 when iTunes first launched. iPod, iPhone and iPad users find it convenient to save their credit card info on the site as it makes it easy to instantly purchase applications, music, albums, movies, television shows, books and much more.

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