Wall Street Journal was informed on Apple via anonymous sources that the company is considering introducing PayPal as a new payment processor solution for iTunes store. If this goes through, the users will have more convenient ways to make payments for purchases made through their iTunes accounts.
However, there has been no direct response from Apple or its correspondents concerning this story. The situation is more like connecting-the-dots kind of strategy for financial analysts. Jennifer Bailey, Apple iTunes head store manager, has been moved up the ranks. She is now promoted to a new, but unknown role, and working as a core individual behind the company’s new payment model.
Also, if Apple expands its operations in the mobile payment solution industry, it will give leverage to three entities:
- iTunes account holders who are always interested in making payments through PayPal.
- Credit card companies
- Potential customers who’d be enticed to open an iTunes account after PayPal is introduced.
Though Apple will be a nice suitor to PayPal mobile payments, trouble is that it will also be a direct competitor to PayPal and eBay. What do you think?