Apple Designed iPhone 5S’ Touch ID For Mobile Payments

Yesterday, during Apple’s earnings conference call with analysts, Tim Cook (Apple CEO) said that Touch ID (the fingerprint recognition feature integrated in Apple’s current flagship, the iPhone 5S) was designed with mobile payments in mind, as Apple is “intrigued” by the area of mobile payments: “The mobile payments area in general is one we’ve been intrigued with [...] It was one of the thoughts behind Touch ID”.

Apple introduced the Touch ID feature in its latest iPhone model, the iPhone 5S, as an unique way of unlocking the smartphone. However, the Cupertino based giant also allows users to pay for apps bought on iTunes and the App Store, without having to enter an username and password combo. At the moment, Touch ID’s foray into mobile payments doesn’t go any further than allowing purchases on iTunes and on the App Store without the need of an username and a password. However, Tim Cook hints that in the future Touch ID would be used for more. It must also be said that Apple does not allow third parties to verify purchases via Touch ID yet.

Even with the limited functionality when it comes to mobile payments, Tim Cook is very pleased with consumers’ response to Touch ID: “[...] we’re seeing that people love being able to buy content, whether it’s music or movies or books, from their iPhone, using Touch ID“. He also mentioned that using Touch ID to make mobile payments is “incredibly simple and easy and elegant”. Tim Cook also added that “It’s clear that there’s a lot of opportunity there.”, in regards to using Touch ID for mobile payments.

Tim Cook also said that mobile payments is an area that Apple is very interested in:  “You can tell by looking at the demographics of our customers and the amount of commerce that goes through iOS devices versus the competition that it’s a big opportunity on the platform“. There have been rumors that Apple has formed an internal team whose task is to design a system for mobile payments and Tim Cook’s latest statements definitely support these rumors.