Apple Pay success will be decided in the battle between Banks and Merchants

Discussion in 'iOS 8' started by hasanahmad, Oct 31, 2014.

  1. hasanahmad macrumors 65816

    May 20, 2009
    Who do you guys think have more power and influence, Banks or Merchants
  2. AdonisSMU macrumors 603

    Oct 23, 2010
    Banks TBQH. They have everyone's banking accounts. The reason cards got popular because of the human risks associated with cash.
  3. Rhonindk, Oct 31, 2014
    Last edited: Oct 31, 2014

    Rhonindk macrumors 68040


    If the NFC functionality is not at the checkout, ..........
    Now if the banks offered an incentive to the merchants/retailers to have NFC added to their terminals, that may get the ball rolling.

    NFC to banks is a method to promote credit card use.
    NFC to merchants is an additional cost with little current return.

    NFC for consumers is just another payment option.
  4. AdonisSMU macrumors 603

    Oct 23, 2010
    The problem with this is the Banks control the funds. I'm using my debit card with ApplePay. Merchants have no leverage in wether or not NFC will work. If you tell the banks no, they don't have much incentive for consumers to spend their funds if they can loan out the money for a higher interest rate than they are paying a consumer.
  5. Armen macrumors 604


    Apr 30, 2013
  6. newellj macrumors 603

    Oct 15, 2014
    Boston, MA, US
    This. We get the final vote. If I refuse to use merchant systems, like CurrentC, it won't go anywhere.
  7. Rhonindk macrumors 68040


    But you don't need the banks for NFC to work.
    Apple Pay works that way.
    Google Wallet doesn't.
    Most other NFC payment methods, unless issued by the bank don't need the banks permission.

    Not seeing how the banks can drive this.
  8. appleii.c macrumors 6502


    Mar 18, 2013
    While I believe that us the consumers will determine its long term success, i think for it to take off both the banks AND the merchants need to work it out. One of the things that was lacking in prior NFC implementations was the lack of support. Walgreens and McDonalds were the big ones. Well, people like myself go to Walgreens for prescriptions only (which is rarely), and I use the drive thru. McDonalds... again, once a year when I want to eat something delicious but terribly bad for me... and again, drive thru. On top of that, it's a $10 transaction.

    If the banks and CC companies can work out a lower rate for merchants, since the security is much better, more merchants will jump on. We need places like Grocery Stores, Mid to Large department stores, Sporting events etc. If it's available, and if it's secure... we the customers will use it.
  9. Tzerlag macrumors regular


    Oct 1, 2014
    I'm baaaaack
    Banks can remain neutral (NFC/Google wallet) or they can support the method if they have an incentive like they do with Apple pay.

    The fraud protection and it's projected cost reductions offered by Apple pay is attractive to banks. The banks can easily incentivize merchants by discounting their fee for Apple pay over other forms of payment.
  10. SatManager macrumors 6502


    Feb 20, 2012
    Las Vegas
    This is very true. Banks can easily influenced this methodology through discounts or equipment cost reductions but the actual drivers would be through the credit card processors like Visa and MasterCard. The banks are just the card issuers and while have there name on the card as well as the brand, the processor is the one who is going to have the contract with the merchant that sets the rates.
  11. JacksTLOS macrumors member

    Aug 31, 2011
    Ahh but here's the rub... with Google Wallet using NFC counts as "Card not present" and the CC fee is higher.

    Using Apple Pay counts as "Card Present" and CC fee is lower.

    I foresee Google Wallet changing their implementation of NFC to match the security of Apple pay so they can go to the banks and get that "Card Present" cc fee. In this way the banks are very responsible for the success of NFC!
  12. AdonisSMU macrumors 603

    Oct 23, 2010
    Banks control the money. If they arent on board nothing is going anywhere accept as it relates to cash.
  13. Tzerlag macrumors regular


    Oct 1, 2014
    I'm baaaaack

    I was (imprecisely) lumping the processors and issuers together under the label "the banks".
    Whoever controls the fees paid by the merchants wields a lot of power.
  14. leonk1 macrumors newbie

    Oct 13, 2014
    Banks control the money. They can easily block transactions originating from CurrentC.

    CurrentC or any other merchant driven ******** is dead on arrival.
  15. iapplelove macrumors 601


    Nov 22, 2011
    East Coast USA
    I wouldn't call it dead. The amount of retail support out of the gate is vast and dwarfs the amount of stores excepting NFC payments.

    Between Walmart,Target,CVS,Rite-Aid,DunkinDonuts,BestBuy,ShellGasoline,Mobile,All Dardin Resturants Olive Garden etc.,7-11,Kohls,Lowels..MCX says 110,000 retailers are on board.

    The battle over NFC VS MCX CurrentC is going to be long and drawn out unfortunately.
  16. mbhforum macrumors 6502a

    Jun 23, 2010
    People seem to forget, merchants still and will always accept Credit Card payments. They will be paying the cc fees regardless of Apple Pay. It's basically a credit card vs CurrentC battle. NFC is just a part of the credit card payment system. Once the merchants realize CurrentC is not saving them the fees, they still might not open up NFC as it promotes the use of credit cards and merchant would still rather you use cash.

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