Apple Is Now A Bank?

Posted: Sep 14 2014, 10:58pm CDT | by , Updated: Sep 14 2014, 11:13pm CDT, in News | Apple

 

Apple Is Now A Bank?
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Apple is a key player in today's economy. That said, its products could potentially alter people's lives. With Apple Pay, regulators, financial institutions, and policy-makers are preparing for the major shift.

Apple Pay could catapult the company into the same level of the financial institutions. Apple's new mobile payment system, which uses NFC technology and tokenization, is the talk of the town. Analysts are expecting Apple Pay to revolutionize the mobile payments industry.

In a move that sets Apple apart from the competition, the company nabbed strategic partnerships with Visa, MasterCard, American Express, JPMorgan, and more. To date, Apple has reportedly sealed deals with around 222,000 merchants in the U.S., according to The Hill.

Apple's foray into the lucrative mobile payments business is sure to capture the prying eyes of the federal regulators. The Consumer Financial Protection Bureau (CFPB) for example, closely monitors the new sector to diagnose imminent consumer protection issues.

"Rules that apply to plastic card payments also apply to payments with a phone," says CFPB spokeswoman Moira Vahey. Apple has yet to reveal the details of its new mobile payment system next month. At the company's event last week, Apple CEO Tim Cook promised to change how we buy things through Apple Pay.

Apple is a key player in today's economy. That said, its products could potentially alter people's lives. With Apple Pay, regulators, financial institutions, and policy-makers are preparing for the major shift.

“For regulators and legislators this is a big change,” said Jason Oxman, CEO of the Electronic Transactions Association. “People have been paying in the United States using plastic cards for 40 years. This is without question the most significant technological change in payments in four decades.”

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<a href="/latest_stories/all/all/21" rel="author">Gene Ryan Briones</a>
Gene Ryan Briones (Google+) is a technology journalist with a wide experience in writing about the latest trends in the technology industry, ranging from mobile technology, gadgets and robots, as well as computer hardware and software.

 

 

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