Dive Brief:

• Apple Computer Inc. is exploring the possibility of developing its iTunes payment system, now used by its customers for digital products like music and apps, to be used for physical goods and services, according to a Wall Street Journal report citing anonymous sources.

• Through iTunes, Cupertino, Calif.-based Apple has millions of customer credit cards on file. Expanding iTunes in this way would compete with Paypal, Stripe, and similar services.

• Eddy Cue, Apple’s senior vice president of Internet software and services, has reportedly met with industry executives regarding such a move, and the company has expanded the role of Jennifer Bailey, vice president of its online store, to increase the scope of its payment business.

Dive Insight:

Payments startup Stripe recently raised $80 million from investors. And investor Carl Icahn last week famously proposed spinning off Paypal from eBay. These rumors from Apple, which, by the way, Icahn noted could be an ideal Paypal suitor, show how large mobile and online payment systems are looming in the retail sector.