Sunday, July 8, 2012

A Smart Look at App-Enabled Credit Cards

Forbes enlisted billionaire and LinkedIn founder Reid Hastings to produce this look at credit cards as platforms for apps.

Anyone who has bought something through iTunes or Amazon might notice charges on the card they have associated to those accounts for items not purchased directly from these stores.

When you buy something through an app on your iPhone, it is using the credit card you have on file at Apple.  Likewise, when you buy something using your Amazon account, it might well be through an app provided by services like Bitmenu.

App-enabled credit cards provide a secure way to offer more for sale from more places without requiring consumers to register their credit card with each merchant or vendor they wish to buy from.  As alluded to the Forbes article, your iTunes or Amazon account might soon enough enable you to purchase things from within a physical store.

To make this happen, developers must build apps that connect users with the credit cards they already have on file with iTunes, Amazon or other payment processors.  As these payment services work with more developers, the kinds of applications suggested by the article will become available.