Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
A fascinating concept. Apple is working on a peer to peer money transfer system with Pay. Imagine paying your bills utilizing the same system and without launching another app. If this comes to fruition, it would be a game changer in the banking sector.
You can peer-to-peer pay using Google Wallet. Admittedly, Apple has refined and improved upon the user experience, but Google Wallet does offer it and that doesn't really indicate Google's intention to become a bank.
But, beyond anything else and I don't want this to sound like I'm against the post or anything (not at all), but I do read "Apple will become a bank!" a lot and the thing that I emphasize is that I think that's absolutely not what Apple wants.
Apple wants the functionality of paying your friends and probably whatever else they can fit in without being classified as a bank. Because if Apple went far enough that they could be considered a financial institution, I just don't think they want to deal with the regulation or the scrutiny and I really don't think Google does.
I see Apple becoming a more frequent technology partner with banks and other financial institutions and I think they are an attractive partner. But I just think that Apple will walk up to the line of being considered a "financial institution" but they will not want to step over it.
Lastly, Apple doesn't want to have to build the financial pipes because why build a railroad when you can use other people's pipes/rails and you get a small%. If you build pipes/rails for the sole use of financial transactions, does that make you a financial institution?
I think the final issue with Apple and finance is that I really think they are trying to do as much as they can without being considered a "financial institution." If financial institutions start feeling threatened by Apple, I do think they'll try to make the case that Apple is one.
Looks like kids of tomorrow will be going into mom and dad's phone to swipe a few bucks.
The old timer in me hopes that Apple develops an app that when this type of "lending" happens the phone emits the sounds of rustling paper and the smell of unfolding leather.
I agree with Scott analysis that Apple is not becoming a bank. Apple Pay will bring in steady and increasing revenue stream without having to build the infrastructure (Scott's railroad analogy).
@Bee, my teenage kids are well verse with Apple devices and we are trying to keep up with them. Biometric passwords will keep our phones safe.
Comments
But, beyond anything else and I don't want this to sound like I'm against the post or anything (not at all), but I do read "Apple will become a bank!" a lot and the thing that I emphasize is that I think that's absolutely not what Apple wants.
Apple wants the functionality of paying your friends and probably whatever else they can fit in without being classified as a bank. Because if Apple went far enough that they could be considered a financial institution, I just don't think they want to deal with the regulation or the scrutiny and I really don't think Google does.
I see Apple becoming a more frequent technology partner with banks and other financial institutions and I think they are an attractive partner. But I just think that Apple will walk up to the line of being considered a "financial institution" but they will not want to step over it.
Lastly, Apple doesn't want to have to build the financial pipes because why build a railroad when you can use other people's pipes/rails and you get a small%. If you build pipes/rails for the sole use of financial transactions, does that make you a financial institution?
I think the final issue with Apple and finance is that I really think they are trying to do as much as they can without being considered a "financial institution." If financial institutions start feeling threatened by Apple, I do think they'll try to make the case that Apple is one.
The old timer in me hopes that Apple develops an app that when this type of "lending" happens the phone emits the sounds of rustling paper and the smell of unfolding leather.
@Bee, my teenage kids are well verse with Apple devices and we are trying to keep up with them. Biometric passwords will keep our phones safe.