Why Apple Has Already Won the Mobile Payments War

It’s so easy, so convenient and so magical. No, I’m not referring to the latest device by Apple, but one of the underlying processes that changed the fundamental dynamics of making a purchase on mobile devices: Apple’s one-click payment system, or iCurrency. Yes, I know, there is no such thing called iCurrency. Call it whatever you like, the fact is – today, Apple has driven more than 10 billion downloads of digital content through iTunes (e.g., music, movies, TV shows and e-books, etc.). If Apple opens up their one-click system to mobile and online retailers and other businesses, they will surpass PayPal. Moreover, Apple will achieve what mobile carriers have been trying unsuccessfully to do for the last 15 years: process all consumer purchases through mobile devices. How? The three main drivers Apple has in its favor include (1) enablement of impulse buys, (2) trust from consumers and (3) proliferation across over 100 million iOS devices.

Digital content has evolved tremendously over the last 10 years – from ringtones and simple WAP games on the carrier decks, to robust applications, games, movies, songs, books, in-game currencies and much more. Considering the multitude of mobile devices we carry and our need for on-the-spot satisfaction as a society, our love for digital content and our ability to blindly follow, the magical one-touch button will only continue to grow exponentially.

My theory of iCurrency domination stems partly from my own personal experience and the fact that companies like Paypal have seen an increase in mobile transactions that are six times higher than in 2008. In fact, Paypal expects to close out 2010 with over $500 million in mobile transactions.