Apple has filed a patent with USPTO that is based on advertising to consumers on their mobile device based on their credit card balance. Here is the abstract from their filing (emphasis mine):
Method and system for targeted advertising of goods and services to users of mobile terminals, based for example on the users’ profile. Goods and services are marketed to particular target groups of users sharing a common profile which may be selected to increase the likelihood of the users responding to the advertisements and purchasing the advertised goods and services. The common profile of users may be based on the amount of pre-paid credit available to each user. An advantage of such targeted advertising is that only advertisements for goods and services which particular users can afford, are delivered to these users.
Obviously the advantage of such a targeting system is that advertisers would be able to target high networth (those with large available credit card balances) with more expensive items and conversely target those with a low networth (small available credit card balances) with less expensive items. My bigger concern about an advertising system such is this is that advertisers might also be able to target people based on their credit card debt (either intentionally or mapping their available balance over time) and target predatory loans to these users.
If approved and followed through by Apple, this will be an opt in system and Apple will provide users with free or subsidized telephone services for opting in and responding to the ads.
Personally I don’t think this patent will ever see the light of day, there will be way too much backlash from consumers and consumer advocates who are uncomfortable with having this sort of data sold to advertisers in such a public manner.
It is interesting how eager Apple are to enter the world of payments and consumer credit data, they must obviously be pleased with the results of Apple Pay so far.
Isn’t this just the inevitable and completely foreseeable result of Apple Pay? Did people really think that app was created and maintained out of the goodness of Apple’s heart?
Actually Apple Pay makes their money by charging a 0.15% fee to merchants. This would be an additional revenue stream for them.
interesting, though it reads to me like the targeting is based on pre-paid credit available (ie, apple gift cards or itunes credit), rather than credit card available CL