Apple Discussing Mobile Payments Partnership With Nordstrom

jlake02 said:

This exactly. This rumor is underwhelming. Who cares if they partner with Nordstroms?!

If they partner with major cards, I see no reason to partner with retailers one at a time.

I guess we'll find out in a week.

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You still don't get it...

Many stores want you to use their own credit cards. They make huge $ from these (obviously that's why they're in the credit card game). Apple has Visa, Mastercard and Amex signed on but if a store has their own credit card they prefer people charging items on that rather than the big 3. Stores like Nordstrom won't adopt tap-to-pay for the big 3 because they want users to pay using their own card. This is why Apple has to get the big retailers on board (the ones that have their own credit cards).

Apple will have an iWallet/passbook type of app so you can select any card you own (including Nordstrom if you have one) to pay for the merchandise.

Stores without their own credit cards will adopt tap-to-pay for the regular cards with no hesitation...it saves time/fumbling around looking for the right card to use.

Hope that clears things up.

This is great! Nordstrom has been using the iPhone for years to swipe you cc cards. I don't see why people are complaining because until the other major retailers start using it, you won't see it. Besides with all the hacking going around there shouldn't be a rush to adding this feature in every store.

bushido said:

never heard of them

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And you've already declared yourself against credit cards; so you perfectly fit the non-target market.

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liavman said:

I just looked this up. While they are better than Walmart in terms of margins, not that much more so.

Nordstrom

Profit Margin (ttm): 5.64%
Operating Margin (ttm): 10.18%


Walmart

Profit Margin (ttm): 3.30%
Operating Margin (ttm): 5.53%

I thought, given their high end status, their profit margin will be much higher than Walmart and also a notch above Macy's. Not so

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Their profit margin is 71% higher than Walmart!!! That is much, much higher!

MacRumors said:

... Nordstrom's current point-of-sale systems, which are said to be the same as Apple's own in-store EasyPay systems, may possibly be compatible with Apple's upcoming mobile payment service.

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First thing I thought when using EasyPay at an Apple Store: "So what's preventing other brick-and-mortar stores from using this same system?" I guess it was just a small matter of doing deals, signing contracts, rolling out in-store hardware, releasing mobile hardware, updating iOS, and all that.

Too bad it's Nordstrom's.
I don't like navy blue wool blazers with brass buttons with anchors on them.
Just not a yachtie I guess.

According to Nordstrom employees, Apple's mobile point-of-sale systems are purchased directly from Apple and were updated to work with 'the most recent iPhones" just a few weeks ago

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wow a hole year to update to working with the iPhone 5s. That is shoddy. Someone shoot I mean fire the IT and miss management.

/s


and yes hole year was not a typo. hole, in the year, hole, get it...

/cleverness haha

boshii said:

I'd much rather spend my money on the latest tech that affects my life instead of a name on clothes that do nothing for me.

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Ah, but clothes make the man. (Plus clothes made from better fabric feel and wear better too -- often more expensive clothes are a better value long term). I like to look sharp myself.

Menel said:

Neimans are the slime balls that knew about their customer info security breach BEFORE the holiday season, but waited till after to notify consumers.

They are as low class as you can get.

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I'm talking about the very upscale product selection they sell, and the prices that go with them, not management. Those are two separate issues. Neimans is in the upper rungs of dept. stores whether you respect management or not.

engg2000 said:

Stores like Nordstrom won't adopt tap-to-pay for the big 3 because they want users to pay using their own card. This is why Apple has to get the big retailers on board (the ones that have their own credit cards).

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Yes and no. Dept. def. would love you to use their card, but often their card is also a major CC. For example my Nordstrom card is a Nordstrom Visa. Bloomingdale's has an AMEX card, etc., etc.

The way dept stores are getting customer's to use their branded card now is loyalty points, pre-sales, and other gimmicks. But while Nordstrom's perks are exclusively for card holders, Bloomingdales offers limited perks even to non-card holders to encourage repeat shopping. Ultimately, they'll take customer's money any way they can and if tap to pay is the answer they'll adopt it

I do most of my clothes shopping at Nordstrom. Their customer service is unbelievable. You can buy anything without risk because you know that if it doesn't work out you can always return it, no questions asked. That convenience is worth the price to me.

Kinda like Apple products. I agree with the estimate that at least 80-90% of Nordstrom customers also carry an iPhone.

This is an extremely smart play by Apple. Apple has always valued profit over marketshare. Partnering with Nordstrom for the initial rollout makes perfect sense.

They'll expand to the Starbucks and Targets of the world soon enough. For the first rollout Apple wants to convey its longtime image of accessible luxury. Nordstrom is perfect for that.

Chupa Chupa said:

Yes and no. Dept. def. would love you to use their card, but often their card is also a major CC. For example my Nordstrom card is a Nordstrom Visa. Bloomingdale's has an AMEX card, etc., etc.

The way dept stores are getting customer's to use their branded card now is loyalty points, pre-sales, and other gimmicks. But while Nordstrom's perks are exclusively for card holders, Bloomingdales offers limited perks even to non-card holders to encourage repeat shopping. Ultimately, they'll take customer's money any way they can and if tap to pay is the answer they'll adopt it

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You mean Yes and Yes...

Merchants make money by having a branded card so if a phone has NFC for only Amex, Visa and Mastercard and a person pays with their phone for convenience vs paying/signing up and paying with a branded credit card, there is no incentive for the merchant to get the hardware for tap-to-pay...that is exactly why wide adoption in the US hasn't taken off for Android's tap-to-pay.

If a merchant can make it just as easy to select their co-branded card, they will change over to tap-to-pay.

They make money in three ways:

a) Volume Based: Merchant partner receives royalty payment on credit card sales volume (60 - 80 bps), and in some cases, new account bounties (Range from $5 - $100+)

b) Revenue Sharing: Merchant partner receives a share of the finance charges/late fees

c) Profit Sharing: Merchant partner receives a percentage (50 - 100%) of all profit above the bank's targeted return.

Apple is negotiating to get a piece of that pie which will help stores also promote branded cards as well.

.....so, like I said.....Yes and Yes.

engg2000 said:

You mean Yes and Yes...

.....so, like I said.....Yes and Yes.

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Please don't tell me what I mean. I meant what I wrote, just as you meant what you wrote. I partially disagree with what you wrote. You don't have to agree with what I wrote, but don't tell me what I meant to say.

Chupa Chupa said:

Bloomingdales offers limited perks even to non-card holders to encourage repeat shopping. Ultimately, they'll take customer's money any way they can and if tap to pay is the answer they'll adopt it

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They also offer more perks if you use their card.

Explain this...Android has this feature already....why not adopt the tap to pay for Android?

I just want to point out what no one else has mentioned while they were complaining about why Walmart/Target/Macy's/Gas Stations etc probably aren't one of the first on Apple's list.

Nordstrom has been using the Apple ecosystem as point of sale for about the last 6 years. This probably is a very easy integration with the existing point of sale.

You literally can be rung up with an iPod while in the fitting rooms there. The current system swipes the customer's card right on the iPod. Departments also have iPads to show you items on an electronic catalog.

If you make an online order, it gets routed to a store that carries the item, pops up on an iPod that a web employee carries with them all day, they go and get the item from the floor, scan it, and bring it down to shipping.

All of the personal stylists and upper management are given company iPhones. Employees can text, email and call customers as they please about upcoming events, sales, etc.

I suspect that this has actually been in Apple's and Nordstrom's pipeline a lot longer than is being mentioned. The store I am at just had all of the registers replaced last week. This has been ongoing throughout the company over the last few weeks and wouldn't doubt if this has something to do with this.

And for those complaining about Nordstrom prices, just note that they price match everything, have free shipping online (no minimum), and there is no return policy (no receipt/no problem).

does this accept "Nordstrom Debit" card?