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Apple Pay Details: Apple Gets 0.15% Cut of Purchases, Higher Rates for Bluetooth Payments
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Banks are not stupid
Hold on! Banks charge retailers 1.5%_2.5% for every purchase customers make.
Now they only shell out .0015% to Apple; that is 1% of what they make.
Customers are shielded from these charges so they ar not aware.
Hold on! Banks charge retailers 1.5%_2.5% for every purchase customers make.
Now they only shell out .0015% to Apple; that is 1% of what they make.
Customers are shielded from these charges so they ar not aware.
There are two possible outcomes of that comment...
(1) you are trolling
(2) I just lost my faith in humanity
Is this the first we're hearing that Bluetooth LE can be used as a mode of payment in addition to NFC? This is a big deal, and means that the FCC diagram of the Apple-built Bluetooth LE device is probably, as I expected, a COMBINATION iBeacon AND payment terminal for merchants...
Very interesting...
Very interesting...
They're very dumb for having opted out and will pay the price later down the road. Understandably, Walmart is a really cheap retailer and I'm not talking about the price of their products, but even McDonald's is supporting Apple Pay! And Best Buy is a P.O.S. Retailer anyways so good riddance.
The article has typos. Only one of these can be correct. Either:
1) Apple earns .0015%, which turns out to be $.0015 for every $100 spent
OR
2) They earn $.15 for every $100 spent, which is .15%
I assume it's the latter since the first scenario nets them almost nothing, even despite how many transactions there will be.
Edit: Article updated. It's #2.
It's been fixed. The original article from The Financial Times used a "0.0015" figure but has now been updated. It's been a long week and I missed the discrepancy between the number and their .15 cents of every $100.
Right after HBO, Scripps and other programmers agree to put all of their linear and VoD channels on Apple TV.
I bet it's 0.015%.
0.15% is too high, approaching the interchange of debit cards (0.25-0.50%), and 0.00015% is too low.
They are trying to get widespread adoption, so don't expect them to try to turn this into a money making monster anytime soon.
0.15% is too high, approaching the interchange of debit cards (0.25-0.50%), and 0.00015% is too low.
They are trying to get widespread adoption, so don't expect them to try to turn this into a money making monster anytime soon.
They must have done their math as 100*.0015 when it should be 100*.000015.
So it is less than a penny for $100, you'd need to spend $10,000 before Apple got 15 cents.
Assuming MY math is correct
You are correct.
The amount stated by Financial Times is 15 cents per $100, which is 0.15%.
"They are also paying hard cash for the privilege of being involved: 15 cents of a $100 purchase will go to the iPhone maker, according to two people familiar with the terms of the agreement, which are not public."
---
Re: Bluetooth. Apparently that comes from the Mastercard exec interview, which claimed:
"However, when using Bluetooth Low Energy (BLE), presumably how the iPhone 5 and 5S will do payments, or when making an in-app purchase using Apple Pay, the transaction fee will be the equivalent to a “card-not-present” rate."
He might've been guessing about support for older iOS devices.
"They are also paying hard cash for the privilege of being involved: 15 cents of a $100 purchase will go to the iPhone maker, according to two people familiar with the terms of the agreement, which are not public."
---
Re: Bluetooth. Apparently that comes from the Mastercard exec interview, which claimed:
"However, when using Bluetooth Low Energy (BLE), presumably how the iPhone 5 and 5S will do payments, or when making an in-app purchase using Apple Pay, the transaction fee will be the equivalent to a “card-not-present” rate."
He might've been guessing about support for older iOS devices.
Last edited:
So wait... is it .15 cents for every hundred dollars?
Or is it 15 cents for every hundred dollars?
The decimal place is very important.
There's a big deference between:
0.15 cents
and
15 cents
LOL@ you saying 'good riddance'...like you're Apple and not a consumer.
I still say the biggest gimmick Apple has going for it is getting it's customers to believe they are part of the team...and not just another wallet to empty.
If this is true it surprises me as Tim Cook spoke about how other payment systems failed due to self interest overriding the customer experience. But I guess good for me as an Apple stock holder.
Eh, they can take a cut of the profits but still provide a better customer experience, tbh. I bet part of the reason they're getting this cut is the sheer # of customers they're bringing to the table, with high penetration of their OS, and guaranteed support on their side, only one company to deal with in terms of manufacturing, etc.
For consumers the benefit is ease of use and the promise of private data in comparison to others.
One needs to ask why Apple even is doing this payment system, and why they are netting such low percentage numbers. In the end, it's ONLY another value-add to get people to buy iPhones, and thus be converted to the Apple ecosystem. The relatively small amount Apple nets from the transactions more than pays for all of their development efforts that went into building out this infrastructure. So in the end it's a wash for them in terms of capital outlay and opex costs, the banks win because it's more secure, retailers work because it's more secure (and liability for fraud shifts to them later next year), and customers like it because it's fun, secure, flexible, and (eventually, in time maybe) let's them thin out the contents of their wallets. I sure as hell know I would embrace anything that lets me de-Costanzafy my wallet!