It's fair to say that Apple and Google share a passion for separating consumers from their wallets. It's no surprise, then, that the tech rivals are reportedly fawning over a mobile payments startup
that aims to make wallets (and purses) a thing of the past.
"Both Apple and Google are engaged in conversations with mobile payments startup BUKU about a potential
acquisition or a wide-reaching partnership at the very least,"
reports TechCrunch, citing unnamed sources.
What makes BOKU such a prize? "It is beautifully, majestically, tear-jerkingly simple," according to VatorNews. "A user need
not have a credit card or even a bank account to make a payment through BOKU. A cell phone owner simply go [sic] to the BOKU site, enters his or her phone number, and replies to a text message to have
all online mobile payments billed to his or her phone bill."
More valuable than its simplicity, however, are its "vast carrier partnerships," notes
MobileMarketingWatch.com. "Integration and acceptance from carriers has long been a hurdle of the mobile commerce space, and BOKU has worked diligently to secure deals with carriers across the globe.
In the US alone, for example, the company already has deals in place with six carriers - including the top four, in addition to US Cellular and Virgin."
As a result, the
startup claims a potential reach nearly 260 million wireless subscribers in the United States, and over 1.6 billion worldwide.
"Could these talks be a prelude to an AdMob-style
bidding war between the pair?" asks TechCrunch. "It's too early to tell. But like the AdMob purchase, a potential M&A deal would involve a transaction for a nine-digit sum ... Apple, for one, could
end up spending at least $250 million (and up to $450 million)."
But Apple isn't likely sweating the numbers, as AppleInsider points out. "With $51 billion in cash and reserves, Apple
can afford to purchase BOKU, even in a bidding war." What's more, "Last month, Jobs hinted that Apple could be looking into using its hefty war chest for more acquisitions."
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