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Apple Gambles on Carrier Billing Mobile Payments To Replace Credit Cards

by on December 5, 2015
 

Apple is one of those companies that can either play a major role of importance in the FinTech industry or utterly fail. Their approach of “throwing stuff at the wall and see what sticks” has not been paying too many dividends just yet. But the company keeps on trucking along, as they are now attempting to bypass credit cards altogether in Russia.

Also read: FinTech and Gaming – Twitch.TV Game Streaming Payment Options

Apple And Boku Join Forces

Boku has been quite a popular service in recent years, as their platform allows users to send and receive money by using text messages. Considering how mobile payments are on the rise all over the world, it only makes sense how more and more companies focus their attention on using alternative forms of payment.

The success of Boku has not gone by unnoticed, as Apple has taken a keen interest in the technology used by the company. At its core, Boku removes the need for credit or debit cards altogether, making it an interesting concept for sending money all over the world without the restrictions associated with traditional finance.

Apple is looking to bypass credit cards entirely as far as mobile payments are concerned. This seems to be in stark contrast to the company’s own Apple Pay service, which allows users to make contactless payments with mobile devices. However, Apple Pay still relies on credit and debit cards, and the service is not being used as often as it could – or should – be.

In a surprising turn of events, Apple has rolled out their new tool for the mobile payment ecosystem to Russia, of all countries. Without making an official announcement accompanying this rollout, the question remains whether or not this is a very limited trial run, or if there is another reason for offering the service to Russian iPhone users first.

However, it has to be said that Apple has some previous experience with this technology. The company allied with Telefonica’s O2 in Germany earlier this year, although not too many results came forth from that experiment. Carrier billing is a very new form of payment technology, and it may take a while until customers take a liking to the idea.

The addition of carrier billing as a payment method in Apple’s iTunes Store allows customers to purchase games, apps, books and digital music without using credit or debit cards. After the user enters their mobile phone number during the process, charges will be added to their monthly bill.

Bypassing Credit Cards Altogether

The main problem with credit and debit cards is how these payment methods were never intended to be used on a large scale. Especially for mobile payments, they don’t seem to make much sense these days, as consumers are not looking to enter credit card details on a touchscreen for purchases.

Whether or not Boku will be the answer to these problems, remains to be seen. The company has a positive track record so far, and now that Apple is experimenting with carrier billing, good things are bound to happen. That is, assuming the technology is reliable enough for mass adoption.

What are your thoughts on Apple joining forces with Boku? Will this project be a success? Let us know in the comments below!

Source: CNBC

Header image courtesy of Apple

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