Apple Hits Out At Australian Banks For 'Trojan Horse' Argument Over Mobile Payment System Access

[truthertech]

"Apple did not write the NFC payment applets; the credit card companies did. Apple does not do anything during a contactless transaction; the credit card networks and banks do."

No, all Apple did was spend the billions to create the platform that banks and cc companies get to use to reduce fraud and offer as a convenience to their customers. You are probably too busy trolling Apple to notice, but banks and credit card companies the world over proudly announce to their customers that they can use Apple Pay.

You also need to read up on how Apple Pay works. Think about it, if what you say was true, that Apple isn't doing anything when you use Apple Pay, then there would be no reason for Apple Pay to exist. The magic sauce is in the iPhone, not the banks. For example, when you add your credit card to Passbook, "Apple doesn't store the card with its real numbers, but rather assigns it a unique Device Account Number that is "encrypted and securely stored in the Secure Element, a dedicated chip in iPhone." This number is never seen or stored on any Apple servers, so no one, not the cashier, not the reader, and not even Apple, ever sees your credit card number. " If you research "Touch ID authentication" and "Secure Element" you'll understand what is going on when you use Apple Pay.


"Yet Apple greedily wants a percentage of each transaction. Moreover, Apple demands that banks send back previously proprietary information on purchase habits, locations, amounts, etc."

"Greedily" LOL. Yes, in return for increasing the amount of transactions for the banks when people use Apple Pay as studies have shown, and for the near elimination of the banks' fraud expenses, and for allowing the banks to offer this as a benefit to their customers, Apple is "greedily" demanding .015%, or a whole 15 cents on every $100 someone spends. LOL.


Banks still get all the same info from an Apple Pay purchase as they ever did with any card. NFC Apple Pay is simply a brand name stuck on top of the normal emulation of a contactless card, after all.

No, you're conflating two different things. If this were just about the banks getting the information back when you use their credit card, there wouldn't be any controversy and these three big banks would gladly sign on as have many financial institutions in Australia and the thousands of banks worldwide who have jumped on board. No, instead these banks want Apple to turn over Apple Pay over to their control so they will control all the information flow about their customers.

 

[tmiw]

Apple did not write the NFC payment applets; the credit card companies did. Apple does not do anything during a contactless transaction; the credit card networks and banks do. Yet Apple demands a percentage of each transaction.

While it is true that Visa and Mastercard came out with those standards, Apple still had to implement them. Why shouldn't they get some sort of compensation for that? I mean, maybe it shouldn't be 0.15% of every transaction, but that's a separate discussion.

 

[truthertech]

While it is true that Visa and Mastercard came out with those standards, Apple still had to implement them. Why shouldn't they get some sort of compensation for that? I mean, maybe it shouldn't be 0.15% of every transaction, but that's a separate discussion.

The standards aren't the key, the Apple Pay platform is the key, which includes the iOS, the Secure Element, Touch ID, etc., all of which cost billions of dollars. Not to mention the hundreds of millions of Apple customers who they are bringing to the equation. Finally, Apple isn't charging Visa and MasterCard anything. They are charging a tiny amount to the card issuers, e.g., the banks which had nothing to do with developing the standards. So, having to pay 15 cents on every $100 purchase run through Apple Pay is a bargain, and it's more than offset by the almost zero chance of fraud. It's not just my opinion on the value to banks; banks themselves have jumped at the chance to be part of Apple Pay throughout the world when they have been approached by Apple. They don't have to sign up, but have to the tune of thousands of banks. Case closed.

 

[tmiw]

The standards aren't the key, the Apple Pay platform is the key, which includes the iOS, the Secure Element, Touch ID, etc., all of which cost billions of dollars. Not to mention the hundreds of millions of Apple customers who they are bringing to the equation. Finally, Apple isn't charging Visa and MasterCard anything. They are charging a tiny amount to the card issuers, e.g., the banks which had nothing to do with developing the standards. So, having to pay 15 cents on every purchase run through Apple Pay is a bargain, and it's more than offset by the almost zero chance of fraud. It's not just my opinion on the value to banks; banks themselves have jumped at the chance to be part of Apple Pay throughout the world when they have been approached by Apple. They don't have to sign up, but have to the tune of thousands of banks. Case closed.

0.15% is actually pretty high in some countries so I'm leaving an opening for a somewhat lower amount.

Also, I count all of what you mentioned as Apple implementing it.