The endangered SIM card. Apple disrupting the telco establishment

Mobile telecoms: The endangered SIM card | The Economist.

Control of the last mile has been put now even closer to the mobile phone. Reports claiming that Apple is developing a new soft SIM card, will make it easier for the smartphone to interact with other applications and depend less on the carrier. The gigantic market power that telecom carriers have enjoyed so far will be seriously challenged by this, as customers will get more room for switching providers.

But perhaps a more important implication is that the soft SIM card will enhance Apple’s ability to set the rules for accessing its digital wallet. This is bad news for emerging payment providers which might face tougher conditions to access Apple’s smart phones. This might be already happening with Apple Pay which is not showing more providers lining up to join the wallet, beyond the big three credit card providers.

Closer monitoring on these developments is recommended as the deployment of Apple Pay unfolds outside of the US.

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This entry was posted in Apple, competition policy, credit cards, Interoperability, Mobile payments, Mobile wallet, NFC, smartphones and tagged . Bookmark the permalink.

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