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Apple Pay Details: Apple Gets 0.15% Cut of Purchases, Higher Rates for Bluetooth Payments
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Apple doesn't know about the details of the transaction - your phone does. It's encrypted as it passes through Apple, and decrypted at the card issuer and at your phone.
I think Selva was arguing that apple might collect data from the invoice data sent to the phone.
The same was said about iCloud, how its was encrypted end to end, but someone figured how to get access in the middle. I reckon Apple Pay will be the next target
Just a heads up
You can't "opt out" from this. It's standard hardware, and as long as the hardware supports it, you support it.
The same was said about iCloud, how its was encrypted end to end, but someone figured how to get access in the middle. I reckon Apple Pay will be the next target
Just a heads up
No. They simply hacked the passwords. They didn't compromise "the middle."
And apple pay doesn't use passwords. It uses one-time tokens that are users after they are used. Nothing other than these are ever transmitted, so unless you have physical access to the device there is no possibility of hacking anything. And even then you'd still have to defeat Touch ID.
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How? Apple doesn't see it.
That depends on how the invoice data is sent back. Maybe it's sent as a push notification for example.
Using VISA as a payment card in stores is free here in Norway, except for a small annual fee from my bank. I can't remember the sum now, it used to be ca. 15-20 dollar a few years ago. It tends to get cheaper and cheaper. As such, Apple's solution comes off as a potentially expensive solution, depending on the size of your purchases of course. (Notice using bluetooth the fee will be higher than 0.15% of the purchase amount.)
EDIT: VISA and Mastercard gets ca. a 2% fee from sales - stores pay the added expense (resulting in higher prices for the customer for sure). Apple's 0.15% seems now rather small in comparison - if I've understood this correctly....
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Now I see the confusion with my earlier posting about swipe fees. So you're saying that in Norway there is no 'swipe fee' charged to the merchant for each use?. Here in the US for each purchase the CC issuer charges the buyer the correct amount but a small percentage (it varies with the type of card, AMEX is higher) is taken out of the amount remitted to the merchant. It's all transparent to the buyer. Merchants fought taking credit cards for years because of the swipe fee but in the end, people just wanted to be able to use a credit/debit card so much they caved.
Anyway, Apple is taking a percentage of the fee the CC issuer gets, again transparent to the buyer and the merchant. So unless the CC card issuers up their swipe fees (which I don't see them doing) then it's not another fee to us. It's taking money from the CC issuer which they actually like because it lessens their fraud liability. I'm sure they ran the numbers, I'm betting the banks will actually save more from fraud claims than they will pay to Apple. In other words the same amount of money changes hands, it's just that Apple will take a seat at the table.
So if your system works differently, I don't know how it will be implemented.
OK, thanks for the clarification.
Yes, there are no swipe fees in Norway with most banks. Interesting topic, as this is useful technology - but not without issues - ie. Apple (and their servers) is located in the USA, and who knows how all the transaction and personal data will be (mis)used in the future. Just look at how American corporations have the possibility now to refuse certain companies and/or persons using important payment systems internationally (eg. anti-spying software, whistleblowers etc. that work against USA's orwellian interests). You know, these are things that a lot of Europeans are worried about...
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It's not just that Apple doesn't *store* the transaction details. Apple will never *see* the transaction details.
Apple is only involved when you first add a payment card to the Passbook application. Apple might be able to keep a record that you added a card, but that's it and it only happens once.
Once you've added a card, any time you make a payment, the details of that payment go:
Phone ->Merchant->Merchant's Bank->Processing Network (Visa, MC, etc)->Your bank.
At no point is Apple involved in the actual transaction.
(3) All the above
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I wish you happy restful weekend
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Perhaps using Apple Watch? Or maybe some kind of non-NFC solution for iPhone 5S?
I believe you are right.
I think it is a way to allow older than iphone 6 devices, android and windows to use the system.
I know the android and windows part is not believable but if apple wants global adaption they need to open up the system alittle
thanks for the answer.
It seems that ApplePay will work any retailer that has NFC enabled registers, even if Apple hasn't done with deal with the retailer?
In Australia all retailers that accept credit cards can read NFC. Although ApplePay is not coming to Australia at first. My guess is it had to do local laws and regulation, to do with using a credit card that you don't actually have with you in the shop.
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Another really good question. Often returns are handed by refunding the money to the credit card used, but with ApplePay, that credit card acentually no longer exists.
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So you have the detail (time, place, amount), but the merchant don't?
I'm guessing the banks are going to give this up I heard Discover is signing on too so now, Visa, Mastercard, AMEX and Discover are supporting this. Why? According to an "expert" I heard on one of the business news channels it's fraud reduction. Evidently Fraud is costing the banks more than 0.15% so they are happy to pay this up if it secures the deal.
If this is the case, and Apple can keep it secure they are frig'n brilliant with this move.
If it's a MacBook Pro that's being purchased, wouldn't Apple get all $2000?
Touché. Lol
Anyone who thinks 0.15% is low don't quite now the massive volume of transactions done in the US alone.
I wouldn't be surprised if it hits 50B$ within 18 months (that's about 85M in money coming in the first year alone to Apple)
Since it adds significantly to the value of their ecosystem; the value to Apple is much more than that. The mere fact that their phone is used in the Store regularly means they can offer many other services to the merchants. The marchants will also enter Apple's ecosystem in a major way.
I wouldn't be surprised if it hits 50B$ within 18 months (that's about 85M in money coming in the first year alone to Apple)
Since it adds significantly to the value of their ecosystem; the value to Apple is much more than that. The mere fact that their phone is used in the Store regularly means they can offer many other services to the merchants. The marchants will also enter Apple's ecosystem in a major way.
That's right, but we rarely hear the whole story. Apple is certainly among the least worst of the major US companies in this regard. I'm vary of how things can change when a service becomes widespread, and many people rely on it. There is a lot of disinformation and gaslighting going on (using half-truths) regarding surveillance and data storage, like how Apple was caught keeping deleted iCloud photos - the ones that were leaked to the public. Also how NSA can tap user information directly, even though companies say that whatever data isn't kept in databases etc. So we shouldn't take everything at face value. Don't forget that the US government (which can also strong-arm tech companies) has been caught lying about these things to the public time and time again.
Anyways, Apple is extremely capable at making practical solutions and innovations, so I will keep an eye on this technology. I've not been the biggest fan of smartphones, but being able to use one as a payment device is interesting.
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Apple's 2013 revenue was above 40 billion.
To add 1 billion in revenue in apple pay would take transaction volume of 666 billion.
I guess 1 bn addition in revenue is certainly meaningful but it'd account for less than 2.5 percent.
U r way behind on your reading. Aren't u?
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But I think there is not too much expense,upkeep or ongoing R&D from apple for this. They have to make sure their system is stable. That's about it. Then they just sit back and collect the money.
Instead of giving Apple that .0015%, why don't they give it to the merchants, who are the ones that will have to update their systems, and that way give them an incentive. Right now, there's really no reason for merchants to want nfc payments. They have to pay more of a percentage per transactions. This is just plain greed from the top (banks and Apple) and the middle man is left out. This payment system is going to crash and burn, and .0015% of 0 is 0.
However, if you use the correct amount (0.15%), Apple gets 1.5 billion from 1 trillion of charges via
pay. That's hardly pocket change. Over time, this is going to be a significant revenue stream for Apple.