One of Apple’s various announcements at WWDC confirmed they would be opening up Touch ID on iOS8, for third parties to integrate mobile payments and security onto their applications and potential offer the security to other applications through Extensibility.
PayPal is one of the first to look at this announcement and begin work, the PayPal’s Senior Director Anuj Nayar confirmed that several PayPal developers were at WWDC and that they already have looked at the API for Touch ID, claiming it is fairly easy to use.
The PayPal integration with Touch ID could remove the password from the application, allowing users to sign-in and check statements all from the fingerprint. This would save time for users who regularly use the PayPal app and might be available for PayPal payments on the Web, although this has not been confirmed.
Touch ID will most likely take over the password now that it is available for all third parties. We cannot see why apps like Facebook wouldn’t use the Touch ID service instead of a password, it is more secure and allows faster access to the service.
Apple did not announce a first party mobile payment service at WWDC, even though this was rumored. Even though this might be announced with the iPhone 6, PayPal could make a move to ensure their payment service is used on more apps and adopted by services before Apple’s service gains traction.
The iPhone 6 will reportedly have near field communication, the first time Apple has adopted this technology. This will allow payment services like Square and PayPal to integrate with real-life mobile payments, things like paying for a Starbucks or car gas.
Mobile payments for real-life goods is still a weird business, some retailers offer mobile payments, but even when they do the system is clunky and the staff don’t know how to use the service. It might be a while before we see full adoption in the US and Europe, even though Square and PayPal are trying to speed up this process.