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Apple Partnering With American Express on iPhone Mobile Payments Initiative [Updated]
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Google Wallet is only available in the US. Hopefully the Apple solution will work worldwide from day one.
That's an interesting thought. Probably not for a first generation offering, but something that I could see happening down the road.
It is hard to envision the technical capabilities of something like this right now since we can only guess what types of sensors will be in the wearable.
1. The retailer needs to cover his cost of you using a credit card.
If you use Amex and buy something for a $1000, the retailer pays about $30+ to Amex in fees.. So the thing you bought for $1000 might have been $950 if it was an all cash business.
2. Credit cards and all types of consumer loans makes everything more expensive than it would be if nobody could borrow to buy stuff.
If nobody could borrow the prices would have to come down to where the market could afford it. With consumer loans you can set any price you want, add some clever marketing and the consumers will just borrow to afford it.
So the thing you buy for a $1000, that would have been $950 with out cards might have been $300 (or what ever the average person is able to save up for just that item) if consumer loans where unavailable..
Many weren't privy to the bank negotiations that fell through as Visa and MC refused Apple's percentage on iOS transactions during NFC 5 prototype development. The prototype 5 devices just didn't hit shelves. PassBook was mostly initiated as a payment system/wallet with NFC (later barcode scanning). With major banks on board, Touch ID implementation and NFC, this is honestly the first iPhone release I am looking forward to since the 3G/S.
Before some state NFC is useless, live overseas were it is highly used; it's not only for payments but a much more secure system then Bluetooth (LE) or RFID chips in credit cards.
Advice, request non-RFID cards from your banks. Thieves conceal $99 readers bought online and wave them near wallets and purses, picking up card info, then transferring that data to a fake CC or even hotel room keys. Dateline and many security firms have covered this and even I was surprised. Best Buy accepted a room key for a few thousand dollars worth of goods. Either that or get metal card holders.
Before some state NFC is useless, live overseas were it is highly used; it's not only for payments but a much more secure system then Bluetooth (LE) or RFID chips in credit cards.
Advice, request non-RFID cards from your banks. Thieves conceal $99 readers bought online and wave them near wallets and purses, picking up card info, then transferring that data to a fake CC or even hotel room keys. Dateline and many security firms have covered this and even I was surprised. Best Buy accepted a room key for a few thousand dollars worth of goods. Either that or get metal card holders.
I hope they also have a pre-paid option so I can transfer funds into my iTunes account and spend them at stores rather than necessarily having to link my credit/debit card. I think that would help to allay some people's fears of using this system and speed up adoption.
AMEX is very international however not as well accepted as MasterCard and visa due to their high costs for retailers. You'd need to go with both visa and MasterCard though for international as I've found in the past, having a visa in some countries especially in Europe isn't always a good thing
In order for the Apples payment system to be a success they need to partner with Amex, Visa & mastercard Visa has already announced a Digital solution system Amex is now believed to be onboard. The only biggie we haven't seen anything about Mastercard. Most likely Mastercard will be on bard if the other two are
Now the big question is Apple ready to undertake this now. It sounds right with the iWatch coming etc. but is Appple ready????
Now the big question is Apple ready to undertake this now. It sounds right with the iWatch coming etc. but is Appple ready????
I sometimes forget how progressive we are in Australia ... have a look at https://www.commbank.com.au/personal/online-banking/commbank-app.html
They turned my iPhone 5S into an NFC enabled device (using a sticker, not a bulky case, and without Apple's assistance), and beyond "tap-and-pay" ... I can actually withdraw cash from an ATM with my phone!
Touch ID would really be minor integration to give it more security ... but it would be nice of Apple to put it in all one neat bundle..
They turned my iPhone 5S into an NFC enabled device (using a sticker, not a bulky case, and without Apple's assistance), and beyond "tap-and-pay" ... I can actually withdraw cash from an ATM with my phone!
Touch ID would really be minor integration to give it more security ... but it would be nice of Apple to put it in all one neat bundle..
Very good point. This would require banks to work with Apple via iCloud/iTunes accounts, which already have payment data saved. I think this is why Apple initially demanded a large percentage of transactions, it would require Apple as more of a middle man thus increased administration costs. If this gets worked out, it would stymy some naysayers who might slowly realize direct payments are just as secure.
That's completely wrong, yes Amex is a charged for card but you get a lot more benefits with the card than you do most other credit cards. You're subscription of 150 usually includes card cover, travel insurance etc
Not sure if some or any of these are available in Sweden , they had some strange rules if benefit giving cards there
I agree MasterCard is free, I have both to cover all scenarios
Visa already has an agreement with Apple. You can be sure Mastercard will agree to this system as well.
We'll be able to select a card (like passbook) and fingerprint scan for payment.
Google already has this but credit card companies are scared of a platform that is so open that they've limited usage.
Most stores in Canada are already tap-to-pay and I've never seen an Android phone being used (although they say its available to Android already).
Tap to pay is totally vulnerable and leaves credit card companies liable for any payments made from a stolen credit card. Fingerprint scan changes everything.
just get an US iTunes account. it doesnt check your IP or location. i use iTunes radio from Germany all the time
I just spent a month in Germany and have lived there, this is not accurate. You need a VPN account that will trace your IP to a US point. The iTunes Store in iOS 8 on my iPad Air was different than the US store. I used my VPN account to watch HBO GO, and noticed iTunes changed.
Also, regarding your comment on Germany and credit cards vs. cash, you must run in different circles. Almost everyone and everything uses and accepts credit, none of my Berlin or Frankfurt friends used/use cash unless they had to. I'm not stating you are wrong, but you are generalizing.
I wish the US would adopt mobile plans and policy's most of the EU use, especially loved T-Mobile wifi hotspots; took out my micro-SIM in my 5S, used my German number and WiFi throughout most of Berlin. Very nice. Verizon and AT&T - ha!
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Cool solution, but I disagree that TouchID is minor. In fact, I think TouchID is the only thing that makes this solution viable in the eyes of consumers and banks worldwide. We can argue the technical merits, but if the perception is that wireless payments are insecure, no one will adopt them.
Any pitch that Apple makes at a keynote regarding mobile payments will be about security and convenience - in that order. The secure enclave on the A7/8 will also be linchpins.
I also found people in the Netherlands think any kind of card that isn't a Maestro must be a credit card.
In the UK mobile payments, contactless and chip and pin are all primarily DEBIT card features (that also work on credit cards). Also most debit cards in the UK are Visa, which again seems to confuse continental Europeans
Yes and No to point one. I run a business and yes it does cost me money when customers use a credit/debit card. However it also costs me money when they use cash because I have to take time out to go to the bank and deposit that cash which also costs me money in terms of bank charges. Plus I have the added worries of holding cash in the business premises.
Apple could shake up this market in the same way PayPal and Square have by offering merchants an alternative to Visa, MasterCard and Amex with lower fees. Simply scan your iPhone to pay directly from your iTunes account and Apple charges the merchant a 1% fee for example. It wouldn't replace the current system as merchants would still have to cater for everyone but it would probably make a lot of money for Apple.
Free higher end VISA and MC usually have free travel insurance, warranty doubling, purchase protection, cash back or equivalent, etc.. I haven't seen an offering from AMEX which wasn't more expensive than ones available from others.
iTunes Radio - remind me what that is again?
It's a great way to discover music. I bought many songs because of it. Hit From '80s station is pretty cool. Brought back a lot of memories.
AmEx has everything you mentioned in addition to automatic insurance against defective or lost/stolen goods. My brother was fully reimbursed by AmEx after his iPhone 5 was stolen, allowing him a brand new one without AppleCare (which doesn't cover lost or stolen devices, you still need to pony up). Depending on the AmEx card you have, benefits vary greatly. This past Spring, any AmEx card holder earned cash for iTunes purchases, it was a 3 month promotion, a "win/win". I've got a Chase Sapphire Preferred Visa, Platinum AmEx and an SPG AmEx, I find the rewards much better with AmEx.
nope iTunes Radio works fine without a VPN. in fact i am using it on the train right now. stuff like Netflix is another story
we have the "EC Karte" but many if not most stores do not even accept credit cards unless its some international chain like Zara or H&M. try using a Credit Card at the HUGE electronic chain like Media Markt (its like BestBuy) or any grocery store besides Real and you are out of luck. I have a prepaid credit card that i only use for online shopping or to withdraw money from any atm free of additional charge but i never really get the chance to actually pay with one. cant say ive tried at a restaurant tho. cash seems easier in that case
Years ago when Android first brought out nfc I thought it was a cool idea but now with nfc credit and debit cards it so easy to just slide my card out a bit to the magnetic stripe and tap it and go.
Why would I want to risk giving this info to a third party (Apple/Google) on an electronic device that could be vulnerable to hacking as well?
For those saying you wouldn't need a wallet you should still carry your ID and a bit of cash and I use a minimalist wallet that is uber thin and small anyway.
Honestly more cumbersome to unlock your phone, and tap while hoping the fingerprint reader reads your print correctly the first time.
Why would I want to risk giving this info to a third party (Apple/Google) on an electronic device that could be vulnerable to hacking as well?
For those saying you wouldn't need a wallet you should still carry your ID and a bit of cash and I use a minimalist wallet that is uber thin and small anyway.
Honestly more cumbersome to unlock your phone, and tap while hoping the fingerprint reader reads your print correctly the first time.
Really, dude? Really?
Here's how we do the Apple thing in our family:
I'm on the new digit cycle.
Mrs. Thequick is on the S cycle.
If I have to wait a year to get the "cool new thing," so be it.
This isn't like a new pancreas from stem cells that will cure my diabetes. It's a phone.
man that's a sweet app. good for you guys. I'd like to go down there someday. looks like beautiful country.