Apple’s new wireless payment service could help boost sales of iPhone 6 with its larger screen more suited to such transactions, Reuters reported Thursday.
The new service is expected to claw back market share lost to smartphones running on Google Inc.’s Android platform, the report said.
It allows iPhone 6 and iPhone 6 Plus users to wirelessly pay for everything from a hamburger to groceries using their American Express, Visa or Mastercard at the tap of a button.
Samsung Electronics Co. Ltd. Motorola Mobility and others have similar wireless technology in many Android smartphones but with payment systems such as Google’s Wallet failing to catch on, the technology is not standard in handsets.
Wall Street analysts hailed Apple’s new wireless payment system as the star of the show when Apple unveiled the iPhone 6 and the iWatch Wednesday.
“On the mobile payments front, we believe the company made a major breakthrough and cracked an important and vexing issue that has plagued the industry for several years regarding customer ownership,” William Blair analysts wrote in a note.
Worldwide market share of iPhones, which contribute more than half of Apple’s revenue, slipped to 11.7 percent for the quarter to June from 13 percent a year earlier, according to research firm IDC.
Apple Watch, the company’s first new product since the iPad, is linked to the iPhone 6 models. Starting at US$349, it will receive phone calls and messages, play music and serve as a digital wallet to pay for goods.
The watch, which will go on sale in the United States next year, has received mixed reactions. Fashion commentators like its clean aesthetic while some tech writers pointed out Apple’s silence over battery life.
Sony Corp, Samsung, LG Electronics Inc and Qualcomm Inc have launched smart watches based on Google’s Android Wear, without great success.
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