How Apple Pay Could Mark Foray into Cryptocurrencies

One of the reputations Apple has developed over the years relates to its innate ability to take an idea for something and turn it on its head. Look no further than how it turned mobile phones into a phenomenon.

Now there is banter that Apple could do to cryptocurrencies what it did to smartphones, and that has some waiting with baited breath.

The idea of Apple somehow creating its own cryptocurrency is an ambitious one. However, there is little doubt that a mobile payment service Apple is rolling out means it recognizes that digital currencies will become increasingly in demand by consumers.

Enter Apple Pay

Apple boasts Apple Pay as a means for users of its devices to be able to make secure purchases in stores, in apps, and on the web. It also allows users to send and receive money from messages.

Self-described “Apple Holic” and Computer World writer Jonny Evans raised the point about this pay service and cryptocurrencies. He believes launching the service will be a big step for Apple in building its own kind of multinational cryptocurrency. He said:

“Apple Pay is Apple’s foot in the cryptocurrency water.”

Still not the same

While Apple Pay users will be privy to the security of conducting peer-to-peer transactions like cryptocurrencies users, there is a notable difference. Apple Pay users are not afforded the anonymity like crypto users; the participants’ transactions are traceable.

So while it can be said that Apple Pay is akin to cryptos in giving people a means to conduct transactions digitally, that caveat cannot be ignored.

Can’t we all get along?

Some players in the Fintech space don’t see Apple Pay as being a threat to cryptocurrencies like Bitcoin. Instead, they see it as good because people will have more spending options.

Take Jack Dorsey, for example. As CEO of credit card processor Square, he sees value in cryptos and Apple Pay.

“We’re building a register so that sellers can accept a credit card, so they can accept cash, so they can accept a cheque, so they can accept Bitcoin and so they can accept any form of payment that comes across the counter including future ones and burgeoning ones like Apple Pay.”

Apple’s own little world

Because people can use Apple Pay in so many ways, Evans sees it as money that exists only in Apple space “until you turn it into something else — a purchase, a service or "real" money in your account.”

“As I see it, be it consciously or unconsciously, Apple is creating a global platform-based payment ecosystem that could evolve as an international virtual currency iPhone, iPad and Mac owners may use to purchase and trade products, services and more.Given the wider momentum around cryptocurrency, it seems more foolish to ignore that potential than to embrace it.”