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Apple Pay Details: Apple Gets 0.15% Cut of Purchases, Higher Rates for Bluetooth Payments
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Hard cash?
I doubt the banks will be giving Apple hard cash. I'm guessing the banks will perform electronic transfers for the money owned to Apple.
I doubt the banks will be giving Apple hard cash. I'm guessing the banks will perform electronic transfers for the money owned to Apple.
Apple is doing this TO MAKE MONEY. Otherwise, they shouldn't take any cut. R&D is funded through customer purchases, not credit card merchant fees. Apple stands to make hundreds of millions per year or more when fully adopted.
ok, this article is confusing.. so Pay can be used in any location where NFC payments are accepted? If thats the case, why is there such a big deal, i thought wall mart accepted NFC payments?
I think their mobile payment partners are pushing back on them to not comply with Apple. Also, someone had stated that even though Best Buy has NFC readers, they aren't active.
It's preposterous how the card companies, banks (and now Apple) can get away with charging a percentage rather than a flat fee. It's not like transferring $100 costs more than transferring $1. If you sell very expensive things like cars or jewellery this can amount to several thousand dollars for a service that costs a few cents to the provider.
I've noticed that a number of 7-11 locations I used to use NFC at (built into my check card) now has the readers turned off. I'm curious what spawned that backwards move?
0.0015% wouldn't make any sense obviously.
0.15% still sounds pretty reasonable and small enough that banks wouldn't really protest.
If apple pay transactions amount to 100 billion dollars, that will still only be 150 million dollars... I'm not even sure apple shareholders will feel even a thing from 150m.
0.15% still sounds pretty reasonable and small enough that banks wouldn't really protest.
If apple pay transactions amount to 100 billion dollars, that will still only be 150 million dollars... I'm not even sure apple shareholders will feel even a thing from 150m.
Again, this is the banks paying Apple. The seller or business is not affected in any way. They pay the same rates they always have.
A lot more than that. 15 cents of a $100 purchase. That's $1.5 of a $1000 purchase.
So you guys in America are only just getting chip and pin cards (or EMV cards as I'm seeing it called a lot) so have therefore been having to sign every time you use your card in store and yet you still get NFC payments withPay probably long before us? This world confuses me sometimes...
Well, you'll be interested to learn that Visa had a stance that we should use chip and signature because it is more cost effective to them and our merchants to implement. Now, whether it actually gets adopted like that, because MC or some other cc body pushed back on it, who knows.
It'll be interesting to see how that all plays out as the October 2015 deadline for EMV chipped credit cards approaches.
You gotta hand it to Apple, their timing jumping on the NFC bandwagon is impeccable...
SO???? AND??? Why would they create the system for customers to use and get nothing out of it? And how is this hurting you as a consumer? They're running a business and you're ignoring the fact that credit card companies charge fees to the retailers and if you don't think those fees are passed onto the customer's items they are purchasing you should take business 101.
But the important question is: How will the stock behave...?
Well, speculation is that it will go slightly down this next couple of weeks. Not because of ApplePay but because many hedge funds will sell off to buy into the IPO for Alibaba (not sure I spelt it right but they are basically the China Amazon). Once the IPO goes look for a bounce. I'm another 200 or so shares next week. I think ApplePay will eventually be the biggest part of their portfolio.
Quality control is a major problem with some manufacturers. Some of them stop working or only work with some devices.
It's easier to just turn the bloody things off altogether than deal with ones that work part of the time.
0.15% is a pretty insignificant chunk considering how much money this will save in fraud prevention. Banks loose billions of dollars every year from stolen credit cards or credit cards that have had their credentials swiped by an employee of the store who installed malware in the payment processing hardware.
I just recently looked into getting one a card processing device with NFC/Chip/etc, and my bank takes around 2% per transaction, which is basically insurance to cover card theft.
I bet the banks would happily pay the same rates to Google/Samsung/etc if they create the same hardware security features as in the iPhone/Apple Watch.
7-11 is part of the group of retailers (Walmart, Target, Best Buy, Lowes, Darden restaurants, Sunoco, and others) pushing their alternative barcode payment method called MCX.
The idea of banks paying Apple a percentage because of "extra security" doesn't meet the smell test with me. I wouldn't be surprised if it wasn't payment for Apple not supporting MCX instead.
With a ponzi scheme like this, no wonder apple's stock has gone up
You obviously don't know what a ponzi scheme is.
Lol.
These idiots on this forum who don't understand capitalism are hilarious aren't they?
They're turned off to promote their own payment and coupon scheme.
The chip cards themselves stop stolen or counterfeit cards. That's why such methods have virtually stopped everywhere else in the world with EMV, and has concentrated in the US the past few years.
Once a country moves to EMV, the overwhelming fraud source is from Card Not Present payments (e.g. buying over the internet).
As for malware in the POS equipment or somewhere else in the retailer, yeah, that's why Visa and others have already started pushing tokenized payments.
Google already uses a secure method using tokens.
But it's not 'a wash'. Once the initial R&D outlay is paid for it basically becomes a cash cow. I highly doubt there will be much ongoing R&D. It's my understanding that once in place Apple is no longer even involved in the transaction. They simply provide the hardware used on the user end (which they would be doing anyway. So Apple will just keep raking in the cash year after year. Or at least until their contracts end (which might happen).
If anyone has been listening to the financial markets since the keynote ApplePay is the more exciting of all the announcements.
