If you are an eBay stock holder, you might want to pay attention. eBay owns PayPal, and PayPal is one of the biggest payment service providers in the world. PayPal facilitates all sorts of online transactions. Well, there’s also Silicon Valley company that does the same thing, but it usually handles payments for music, books and apps which company is this? We are of course talking about Apple. Thanks to its iTunes department, people could buy all sorts of digital products like apps, books and music.
Well, it appears that Apple has much bigger plans for its payment processing department. The company has announced that it has moved up its executive, Jennifer Bailey, into its new payment’s business. Apple is going for broke here. Apple knows that a huge chunk of its users use its hardware devices to buy stuff on-line. The vast majority of that stuff being bought is probably not going through the iTunes system. Apple obviously looks at this as a missed opportunity. This move can truly revolutionize how mobile payment processing works. But not in the way you see it, not in the way you might think. It will revolutionize it because it would push Android to do the same thing. You have to remember that Google doesn’t really make much money of its operating system. It makes its money because people are using Google as the default browser and as the default destination for Android devices. In other words, Google is using the huge distributed network of Android hardware as ad platforms. That business model can only go so far. That business model can only generate so much money. If Apple is successful with this transformation into a payment processing system for its hardware, it’s not inconceivable for Android to morph into a global distributed hardware-based payment processing system in addition to its current role as an ad system.