Apple finding out it isn't so easy to enter the digital payment arena.

I certainly wish all the companies could work together to make this happen. Apple's concept sounds like a great way to prevent so many account breaches that have happened over the past few months. We need some sort of new technology to stay ahead of/defeat these cyber criminals.

 

Everyone wants a "cut" of the mobile payment piece of the pie. Of course it's all about greed.

But saying all this, in 2015 is perfect time for Apple Pay.

http://www.fool.com/investing/general/2014/09/16/apple-pay-is-launching-at-perfect-time.aspx

More and more retailers will have to update their processing systems. It's going to be costly. But retailers who don't update their processing systems will be on the hook for credit card fraud. So it's up to them to decide what's worst.

 

But retailers have to deal with chargebacks. Which cost them extra fees and many times unrecoverable merchandise.

 

Not necessarily true. October 2015 is deadline. It depends. The card issuer or the retailer will be on the hook if they don't have the EMV chip and pin.

 

I doubt it's that simple, especially for small businesses.

 

I think it's way too early to speculate on the impact of Apple Pay.

As a service it's not even rolled out yet.

I think the first couple of times having Apple Pay available becomes a marketable feature that appears in a commercial or billboard, and starts driving traffic to competitors, the hold outs will fall in line fairly quick.

If nothing else, we know Apple users tend to be VERY engaged with their devices and ecosystems. Some will gravitate to Apple Pay terminals, which will be a competitive advantage.

 

Well, according to the blog post on MR's front page, any NFC enabled terminal will be able to accept Apple Pay, even if the merchant hasn't explicitly stated they 'support' it.

Yes, early adoption will likely be a bit slow but as others have stated, merchants will be required to adopt the ability to accept payments from 'chip and pin' functional cards (and thus NFC) by October 2015 else be liable for any associated credit card/debit card fraud. I worked for a few years in risk analysis/fraud and loss prevention in merchant services and credit card processing and those losses can be substantial, especially for smaller merchants. I suspect retailers that have credit card sales significant big ticket items (i.e. Best Buy) will certainly change their tune once this deadline approaches.

The obstacle Google faced with the use of Google Wallet was that carriers crippled the functionality in their branded phones in favor of Isis. They don't have the ability to do the same in iPhones.

 

My only hope is that excitement isn't lost to due the early announcement of a compelling service with a snails pace roll out. People are creatures of habit and are easily deflated. We always want to try the latest and greatest but once something loses steam it is very difficult to recover.

 

I was under the impression 'official support' doesnt matter. I am confused as to what official support actually entails.

From what I understand, nfc capable terminal = both apple pay and google wallet work.

 

That was my understanding as well. Unless a product was specifically blocked they should both work.

 

It's not so much on the merchant side (although their terminals will need to know that the MC/Visa token account ranges are valid numbers)... but more on the bank side:

1. Your card's issuing bank has to write code for its servers, to talk with Apple's servers, to register your card. (Or hire a service to do so.)

2. Your card's issuing bank has to know how to handle tokens. (Or hire a service to do so.)

Other wallets, like Google's bypassed the need for all this cooperation by being the single end point for registration and detokenization, and everything between it and the actual banks are ordinary transactions.

An upside to Apple doing it Visa/MC's way, is that all store-specific rewards stay in place. With Google's way, they are the merchant-of-record. So at least at this time, you still get award points by amount, but nothing extra if say you get more for a participating restaurant.

 

And therein lies the rub as in my experience, US carriers are blocking the use of Google Wallet on their devices. If Google could get past this obstacle, we might see some real headway, with the two heavy hitters in the mobile industry behind he push towards mobile payments.

 

My bank, Wells Fargo just issued me a chip and pin Visa card. because I travel to Europe a lot it will make things easier. Worthless for now in US.

 

What he said.

We don't have a group of savvy accountants that can get this stuff written off.

 

thats recent. wasn't like that before

 

On a related note, the last 2 credit cards I received both have chip and pin technology.

 

With major retailers getting information stolen, I don't see mobile payments being too far off from being a thing of the norm. Cards and pin codes just aren't enough anymore.

 

As I understand it merchants will have to update their cc terminals to accept EMV but that is not the same as NFC. You can have the 1st without having the 2nd. Somebody on here wrote that their cc processor wants $300 for an EMV terminal but $950 plus higher processing fees for an NFC terminal. If that is true I can see a lot of smaller businesses never supporting NFC because they will naver break even.

 

Didn't know that either but hadn't tried since I retired my HTC One (M7) last fall. Good to know.

But see the problem there--we're more tech conscious than the general consumer and we had no idea. A little effort from Google to market this could go a long way.