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tmiw

macrumors 68020
Jun 26, 2007
2,235
508
San Diego, CA
Interesting idea, but merchants likely don't want to get into discussions and debates with customers about payments

Some merchants already are, though. For instance, Kroger and Walmart Pay being promoted (which can eventually lead to moving people off the card rails onto ACH or similar), not to mention Kroger disabling Visa credit support at a few of their brands. Plus the many smaller businesses that have minimums and/or surcharges for card use.

The merchant doesn't pay ANYTHING for Apple Pay. Instead, Apple Pay charges the banks, generally .015% (15cents on every $100) to use Apple Pay. The banks in the US love it because they pay a tiny amount that is more than made up by the near zero fraud rate of Apple Pay versus a physical card.

I don't think it's the belief that they'll pay extra for AP (though in some circumstances they might pay extra for contactless debit card transactions if they end up routing over Visa/MC instead of a domestic debit network). Rather, it's the prospect of card use in general increasing when using a card becomes easier. If you're already unhappy at paying the 3% or whatever for the card volume you're getting, I can see trying to prevent or discourage that from increasing.

On the other hand, if merchants only have to pay, say, 2.5% instead of 3% for contactless, that might be enough of a savings for the holdouts to make it worthwhile to enable. Of course, I don't see Visa/MC ever doing that so this is somewhat moot, but still.

Switchover by merchants to machines that have NFC readers. This has been the chicken or egg problem. Since there was no initial consumer demand to use Apple Pay, and merchants had already purchased machines with chip readers to accommodate the new credit cards, merchants didn't have a reason to rush out and buy new machines just to add NFC readers. This was true for small merchants, e.g., my dry cleaner :(, but also for large merchants like Lowe's who still haven't invested in new NFC capable machines. Adoption of the NFC capable machines has grown steadily, but is still a cost issue, so they aren't ubiquitous. Witness Costco who now accepts Apple Pay at all its stores, but hasn't switched out the reader on its gas pumps, so you can't use Apple Pay to purchase gas.

Note that a lot of the holdouts have hardware that's perfectly capable of NFC (for instance, Lowe's uses the same Verifone MX925s that Target uses). Their POS software, assuming it's not 100% custom, might very well support contactless too (but might also need enough retailer specific changes such that it triggers recertification--which again, might not be worth the hassle unless they can get a cost savings and/or more customers).

The other huge reason for slow adoption by merchants in the US was the reluctance of some of the major chains, such as Walmart, Kroger, Target, etc., who were reluctant to give up the customer data that they lose when you use Apple Pay. Target has just recently caved and now accepts Apple Pay, but Walmart and Kroger are fighting to the end.

Many of the holdouts already have loyalty programs or other mechanisms to get that data. They could just vastly increase marketing/incentives for those to make up for any losses in data from using contactless. Hell, Kohl's and Starbucks have their own payment apps too, but still allow contactless payment in store.

The final reason is customer demand. The majority of iPhone users don't understand Apple Pay, such as how it only take a minute to set up, or how to use it at a merchant and how incredibly simple it is to use. Once people use it, the lightbulb goes off. Apple is trying to increase awareness and demand by partnering with merchants to give discounts when you use Apple Pay. I've seen a marked increase in notifications about Apple Pay discounts with local and national on line merchants in the past six months.

This might impact Apple Pay specifically, but contactless cards may very well be more popular. The few that exist at the moment supposedly already have double digit transaction volume on the contactless interface. (I can't find the source for that at the moment.)
 
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baryon

macrumors 68040
Oct 3, 2009
3,636
2,055
Finally! I'm used to Hungary only getting Apple services years later than everyone else, but Apple Pay would be really nice. I believe my iPhone SE has NFC so it should work?
 
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IT Nerd

macrumors newbie
May 13, 2019
6
4
That's funny. In Belarus all biggest banks are ready to roll out Apple Pay as soon as possible and clients always asking about Apple Pay more and more, but due to some silly reasons from Apple Rus LLC we are not able to use this technology, even with high share of Apple devices in cellular networks and massive coverage by contactless terminals across the country. You can pay by contactless card or via NFC even in a small village.
They told us that they're going to rollout Apple Pay in 2019, but after month refused to launch Apple Pay and that's it.

If anyone like us waiting for Apple Pay rollout someone from Belarus made a simple web application for tracking all countries which are live & in beta. This information obtained from Apple Pay's API. Here is a link: wolfmeister.dev
 
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lartola

macrumors 6502a
Feb 10, 2017
889
357
If you use Apple Pay in a foreign country, does it show you the amount with exchange rate in your own currency before purchase?
The wallet app only shows you the amount in the local currency of the country where you're making the payment; for currency exchange, you will need to check your bank statement. Also, the transaction is only displayed in the recent transaction list after the payment has been made, at which time you may also get a push notification if you have that enabled (for Apple Watch, both the notification and recent transaction list view were only enabled in WatchOS 5).

For example in Mexico, where I use Apple Pay all the time (unofficially, that is), every time I pay I only see the amount in MX$ (Mexico pesos). If I want to know the exchange rate to US dollars (US is the issuing country of the card I use on Apple Pay), I do have to check my bank statement where the purchase amount will be listed both in the US dollars equivalent amount and in MX pesos.
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So envious of that. The USA is a lot better than it has been but it's definitely not like when I'm overseas and can use Apple Pay in so many more businesses than I'm used to.
Yeah, like sit down restaurants. You can use Apple Pay at sit down restaurants overseas, but not at the ones in the US where they still have to take away the cards to process payment (the only country on earth still doing so)
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It’s crazy how long your banks held out. I’ve been using AP w a US based credit card when in Austria for 4 years.

It's even crazier how long they're holding out in Mexico. I've been using Apple Pay in Mexico for three years with a US based card, but with no sign of Apple Pay becoming official in the country, It looks like our banks are going to get past the 6-year mark without budging (no doubt they will break the 5-year mark, since that's later this year and by now it's clear enough that Mexico won't get Apple Pay this year).
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Finally! I'm used to Hungary only getting Apple services years later than everyone else, but Apple Pay would be really nice. I believe my iPhone SE has NFC so it should work?
Yes the iPhone SE is compatible with Apple Pay.
 
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