I think this could be an opportunity for Square depending on how they play this. Tap to pay still has purchase limits and there are still a lot of people who prefer to stick in a credit card. This might be fine for a small restaurant or coffee shop initially but when your coffee shop starts to sell $200 grinders, beans, $300 coffee machines, etc. or you start needing a solution that tracks inventory and such, this is where Square needs to sell the upgrade path to businesses that start to outgrow this solution.
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Apple Announces 'Tap to Pay' Feature Allowing iPhones to Accept Contactless Payments Without Additional Hardware
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"Tap to pay"
Don't tap too hard, or you will have to pay for a new iPhone.
I wonder why they use that phrase when it uses *Near Field* Communication, as in the devices have to be near each other not touching or tapping each other.
The thing is the integration with apple pay’s wallet. So basically an app using this has to make sure they have a value add beyond simply accepting payment.
Apps like square definitely do, they also handle payment and expense tracking etc for businesses.
Venmo on the other hand may be in trouble, because it’s primarily person-to-person. Their saving grace right now is lack of full integration of this kinda payment for most Android users, so venmo has an edge because they can handle person-to-person across platforms better. If google focuses on changing that they’re screwed.
Yes. Online card transactions need a data connection. This is no different than a payment terminal, which in this day and age has to be connected to the internet.
This is not remotely the same as IAP. This is completely in person payments, ie in a store.Any mention by Apple of using this for IAP purchases ?
In theory, it completely eliminates the need for Apple's "curated" iOS App Store
To do a transaction you need a merchant account. If you actually try this and set up an account and commit fraud, they can use the info they have on you to prosecute you for fraud and send you to prison. I assume to create an account you need names, addresses, IDs, etc. People figure these things out. Also, this fear was done years and years ago with contactless cards and as a result we couldn't have contactless cards for many years. Though it was worse then because the actual card number was wirelessly exposed and you didn't need to initiate a payment to get anything, the card number could be sent elsewhere to be charged (on the internet, in person, etc). It is true that a contactless card can be charged (although Apple Pay/Google Pay can't be charged like this because it requires you to initiate a payment and authenticate). If you have contactless cards and you're in close proximity, then I recommend an RFID blocking wallet, those are available everywhere. Or don't keep your contactless cards with you in the subway and just rely on Apple Pay/Google Pay/other phone systems.
This is just another option for Square or other payment processors to allow merchants to take payments, no impact on IRS rules at all.
The earlier iPhones don't have the same NFC setup as the iPhones XS and later have. You can't even read NFC tags on earlier iPhones but you can on new ones.
No different than Square or other payment processors, they have an app to run the merchant payments through, this is a new API for processors. You type up your charge and then they pay on the phone, even with contactless cards. Literally the same as it was before but no extra hardware needed (but still needed for chip reading or swipes).
If you set up a merchant account only. You can do that today. Or you can use Apple Pay Cash. It's not for everyone to just take payments, it's an option for merchants to be able to go without needing separate hardware.
Some people don't seem to realize this isn't about transferring money from person to person, this is for merchants. If you send money from person to person it has to be from a type of cash account with a balance. If you send money with credit cards you get charged cash advance fees. You want to pay like $25 to send someone a few bucks, be my guest.
Small businesses that use Square, Clover, LightSpeed, etc don't use a full POS set-up though. They're basically a tablet on a stand. And they offer accounting/bookkeeping/inventory/payroll services that this Apple Tap to Pay feature doesn't.
Sorry, but as Karma*Police said, they have nothing to worry about.
"At checkout, the merchant will simply prompt the customer to hold their own iPhone or Apple Watch, contactless credit or debit card, or other digital wallet near the merchant's iPhone, and the payment will be securely completed using NFC technology."
Anyone else concerned that someone can just walk through a crowd randomly charging people's unprotected credit cards with their phone? Has apple explained how people who are charged have to verify a purchase made with a card (i.e. entering their billing zip code, etc.)?
Anyone else concerned that someone can just walk through a crowd randomly charging people's unprotected credit cards with their phone? Has apple explained how people who are charged have to verify a purchase made with a card (i.e. entering their billing zip code, etc.)?
"Tap to pay"
Don't tap too hard, or you will have to pay for a new iPhone.
Reminds of that "Bump" app from long ago. ?
Yes, I'm full aware of all that. But a person can easily create a merchant account to accept payments using stolen credentials. As you said, people figure these things out.
That's going to work really well if the iPhone screen is off and locked in your pocket, and most likely it will require a FaceID scan to even accept the payment let alone pay. Hell I can't even transfer a photo to another iphone with AirDrop if the phone is locked and the screen if off. The iPhone is more than secure enough.
Sure. But it's also a huge risk and a lot of effort, and it gets found out once a few people get charged and they report it to the credit card companies if they go through. And it can be done today without anything by Apple, just use the Square contactless reader.
Tap to pay is much easier to market. Hover to pay doesn't sound as good and it doesn't tell users how close/far they should bring their phone to the reader.
You've got Blinders on ... think of it as "In the Field" ... OR, "on the Beach" ... OR, wherever !
It opens-up a brand-new opportunity !
If Regulators figure this out, it's Game Changer !
NO more need for Apple's "curated" iOS App Store !
They can in theory. But as I said you need a merchant account to accept payments. And this is no different than the Square contactless reader, so they can do exactly the same today. It's really up to Square and others to ensure they don't give accounts to fraudsters. They probably require IDs and SS numbers etc, sure someone can steal all of that, but it's a lot of effort and people report fraud quickly enough and get that merchant account closed and they have to try again.
If you're concerned about your cards, don't worry because you have 0 fraud liability. You have to report it in a certain timeframe, something like 30 days, so pay attention to your account statements.
This isn't anything new, the Square reader does the same thing. If they wanted to take payments in person they could, but are you saying Fortnite is gonna have a person on every corner to take money for in-app content? How about every app out there, they'll need trillions of people to work for them!
You would be a thief who has shared enough information about their identity to open an account with a merchant bank, with an audit trail of any theft.
Worst case scenario, the US finally adopts chip-and-PIN
You still have to use Cash App, Venmo, Apple Pay or something to receive the funds right? You can't just have someone tap your device and boom money appears? Maybe I am missing something.
I've been waiting for this to come to the UK for ages, I think it's been forgotten it's been that long
People get into the weeds of complexity, but basically Apple's rules are - outside a few categories (e.g. reader apps competing against iTunes/iBooks) if you consume content or services in-app, you have to provide in-app purchase as the advertised in-app option.
You can additionally sell services and the like on your website or hypothetically via gift cards or in-person swipes with something like this, but the aggression of developers toward in-app purchases are 1) they are required 2) implementing them is work 3) they are expensive 4) users prefer them over searching for the web/gift cards/in-person swipes, which means the cost isn't a small deal
Apple Cash isn’t really a service in the same way the card is.
Anyway, it seems perfectly reasonable to compare given apple’s flakey rollout of international products. It’s not just services. Look at iPhone. No mmWave 5G outside US. Applenews only in a few countries.
Canada still doesn't have Apple Cash and probably never will because our major banks have their own electronic money transfer system and just won't play ball with Apple.
I can't see this ever being green lit for Canada.