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Apple Pay Faces Swiss Antitrust Investigation Over NFC Access
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It is mainly about the Swiss payment system "TWINT". This is used for direct money exchange between TWINT users and for payments in shops. Same as for instance "Tikkie" in the Netherlands. They have to use a separate app, so it is always two steps to use it.
There are also discussions about the fees. Twint has high fees. Some shops do not accept it, just because of that. I use ApplePay and my Credit/Debit-card. They are accepted everywhere. TWINT tries to enter that direct way as well. Nothing egainst that, but they still do charge far higher fees than Credit/Debit-cards. So I stick with the ApplePay solution or I just one of my cards directly.
There are also discussions about the fees. Twint has high fees. Some shops do not accept it, just because of that. I use ApplePay and my Credit/Debit-card. They are accepted everywhere. TWINT tries to enter that direct way as well. Nothing egainst that, but they still do charge far higher fees than Credit/Debit-cards. So I stick with the ApplePay solution or I just one of my cards directly.
That’s how it necessarily is with all software it doesn’t make sense to own something that can be copied essentially for free and is identical to the original. Instead what you own is licenses to use it.
This applies to software you have. There is of course also services.
it's wild how you could invent something and then be slapped with investigations and fines for not accomodating non-existing competitors on your platform
Swiss banks are probably still angry after opposing FATCA and CRS (financial reporting) and basically being forced to adopt them.
It’s now much harder for tin-pot dictators and other criminals to hide/move their money using Swiss banks like they used to.
I’m betting this is a small form of payback for them having to abide by FATCA/CRS—forcing Apple to open up their system.
Except Apple isn’t facilitating criminals with Apple Pay like the Swiss banks were.
It’s now much harder for tin-pot dictators and other criminals to hide/move their money using Swiss banks like they used to.
I’m betting this is a small form of payback for them having to abide by FATCA/CRS—forcing Apple to open up their system.
Except Apple isn’t facilitating criminals with Apple Pay like the Swiss banks were.
Costing less? So using Apple Wallet, then. They conform to each and every feature that results in lower interchange rates. Example: Using a token, 10 basis points off the interchange.
Not necessarily for mobile advertising.
As I said already: The antitrust watchdog isn’t concerned about “harassment through tracking” - they’re going after anticompetitive business conduct. Having a high market share or monopoly isn’t illegal - but leveraging it in anticompetitive ways is.
And they very much are subject to antitrust laws, regulations and enforcement.
Google’s search marketshare isn’t illegal - and neither is their related ad business. As long as they’re a equal-opportunity creeps.
If expect to be able to conduct mobile payments with their smartphones, Apple and Google are certainly “gatekeepers” in the Swiss market, that stand between payment providers and consumers in providing such services. At least if they want to do it through NFC (as, again, consumers expect).
…were it for the additional money charged by Apple as middlemen.
I suppose you’re quoting a U.S. (or some some other market’s) interchange fees though, because “10 basis points off” would be quite a lot (too much), given the low interchange fees that Europeans pay (due to laws/regulations that cap them, ultimately benefiting consumers).
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Haven’t had them or haven’t noticed them. Either way I count it as as a no. 👍
What is the thing that Apple "invented" here?
"Major mobile payment platforms like Apple Pay, Google Wallet, and Samsung Pay leverage NFC technology to enable users to tap their devices on payment terminals for quick and easy transactions."
The History of NFC - Tragging
Near field communication or NFC technology was originally developed in the late 1800’s when Thomas Edison was experimenting with radio. Its roots goes back to radio-frequency identification (RFID). Itcan be defined as a short-range wireless communication technology. Near field communication...
tragging.com
Malicious compliance is how one obtains justice in the face of malicious and unreasonable oppressive force. So, if Apple is using it, it is only because of the injustice of government overreach.
“You are paying a commission to Apple every transaction with Apple Pay.“
That’s not true. It is paid by the card issuer. A consumer paying this can only be true if you think every merchant has that priced in for some reason somehow, which they don’t.
"You" are not paying a fee. The 0.15% (I think) fee that Apple takes is paid by the bank out of the 1.5% to 5% fee that they charge the merchants.
Direct NFC access would do nothing to stop usage fees. It opens banks to add tap to pay to their apps. It opens developers to create third-party wallets that aggregate cards and support tap to pay.
Banks making me use their app to purchase using my phone or watch are the banks that will see my usage of their cards drop precipitously.
Any third-party wallet app that works in the same way that ApplePay does will obviously need to be monetized in some fashion. Will that developer have the ability to negotiate a percentage of the fee from the banks? Will they be a subscription service? My guess is the latter, and that is not good for consumers.
And the Paze wallet that a few banks are trying to get going works the same way as ApplePay. It is run by the people behind Zelle and only supports a few banks. The platform is supported by the participating banks - fees paid by the banks just like ApplePay. While Paze is currently online only I can see them becoming a third-party wallet on your phone as well. No subscriptions fees to users, but still fees paid by someone (again, the banks).
Having Apple Wallet as a single point for my credit cards, loyalty cards, gift cards, boarding cards, and ID is clean and secure. Apple has already opened up NFC for many tasks. I just cannot see a good reason - one that benefits consumers - to grant total access and open the door to poorer user experience, probable reduced security, and possible higher fees or subscriptions.
edit: clarified one sentence. And typo.
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Came here to write this, basically that nobody was discussing Twint which was developed by a consortium formed by the Swiss banking cartel and the big merchants to try and get around credit cards and their related fees.
Not a lot different from the old CurrentC consortium in the USA that collapsed and is only reflected in the fact Walmart doesn’t take Apple Pay.
All processors and acquirers charge fees to the issuer. Not all of them get you discounted interchange. And interchange fees are never passed on from the issuer to the consumer. It’s the cost of doing business, and enhanced function and higher approval rates equates to better returns as more money gets deposited since it becomes easier to access that money for consumers.
Apple does charge "additional" money. The 0.15% then get is paid out of the bank's 2-5% transaction fee. There are no charges to users or merchants from Apple. Yes, that is most everywhere except Europe. I know the Tx fees are much lower (~0.7% total to merchant) so I would imagine Apple's part of that is also a lot less than 0.15%.
Nothing about ApplePay fees have any bearing of costs or benefits to merchants or consumers.
It's quite impressive the number of lawsuits against Apple worldwide. At first I thought "They just want Apple's money", but at this point I'm starting to believe that there might be something wrong with Apple policies after all.
Apple Pay and the wallet. We all know pay systems existed prior to Apple and Apple didnt invent the screen, WiFi, cell phone etc.
Because some underlying technology was leveraged and existed prior to Apple using it doesn’t mean Apple doesn’t own its IP."Major mobile payment platforms like Apple Pay, Google Wallet, and Samsung Pay leverage NFC technology to enable users to tap their devices on payment terminals for quick and easy transactions."
The History of NFC - Tragging
Near field communication or NFC technology was originally developed in the late 1800’s when Thomas Edison was experimenting with radio. Its roots goes back to radio-frequency identification (RFID). Itcan be defined as a short-range wireless communication technology. Near field communication...
I thought the same. And then I thought governments are afraid of apples influence and reach in spite of their paltry market share.
Of course. And there's fierce competition between them.
Where is a duopoly and lack of competition - such as Mastercard and Visa setting interchange rates - they're regulated in Europe (EU).
...ultimately, they are. As are the costs of cash handling.
There's no "5%" transaction fee on retail POS payments in Europe.
Even I can accept card payments for a 2.5% (maximum) all-in fee - and I'm not even a real business.
Apple advertises its own products in the settings app by pushing free trials of Apple Arcade and Music, among other products.