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Apple Pay is expected to be available in 60 percent of retail locations in the United States by the end of the year, Apple's VP of Apple Pay Jennifer Bailey told Fortune today in an interview at the company's Brainstorm Reinvent Conference.

Since Apple Pay's 2014 introduction, Apple has worked to bring it to 24 countries around the world. Apple has to negotiate deals with each and every country where Apple Pay expands, so it's been a slow process, but growth is strong even outside of the United States.

apple-pay-duo-800x555.jpg

Apple has recently been focusing on expanding the usefulness of the Apple Wallet, which houses Apple Pay credit and debit cards. Apple Wallet is now being used for purposes like public transit, customer loyalty programs, student IDs (launching next week), and may soon expand to corporate access and hotel key cards. Apple's own campus permits employees to enter using Apple Wallet.

"It's a tremendous new area for us to focus on, which is really access," Bailey said.

According to Bailey, when Apple Pay was first introduced, Apple didn't approach the launch with the aim of disrupting the credit card industry. Instead, the goal was to work with credit card companies and introduce "great customer experiences."

Apple was uninterested in pursuing a bank charter, necessary for introducing Apple Pay as a credit card replacement option, because it didn't want to face regulation.
"When we thought about Apple Pay, we thought, there are a lot of payments out there that our customers already love and trust," Jennifer Bailey, Apple VP of internet services and Apple Pay, said Tuesday morning during Fortune's Brainstorm Reinvent conference in Chicago. "We don't sit around and think about, 'what industry should we disrupt?'--we think about, 'what great customer experiences can we develop?'"
When asked if Apple makes money from Apple Pay transactions, Bailey answered the question with a "perhaps," but said that other features in the Apple Wallet are about bringing more utility to customers and making sure people "love their iPhones."

Article Link: Apple Pay to Be Available in 60% of U.S. Retail Locations by End of 2018
 

JB184351

macrumors newbie
Feb 28, 2018
2
21
I'm pretty sure when Apple Pay launched I heard that Apple gets 1% of all Apple Pay transactions but I could be wrong.
 
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Kaibelf

Suspended
Apr 29, 2009
2,445
7,441
Silicon Valley, CA
I'm pretty sure when Apple Pay launched I heard that Apple gets 1% of all Apple Pay transactions but I could be wrong.

From what I recall Apple actually gets a cut of the fees given to the credit card companies but it is worth it due to the fraud risk reduction so the card companies are on board. Last I heard it was more like 0.2% of the transaction total or something like that and Visa etc. get the other 1.8 or some such. That was all estimates back then though.
 
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lec0rsaire

macrumors 68000
Feb 23, 2017
1,523
1,446
I remember when I first got the 6 and tried to use it everywhere. Sometime it worked but most times it didn’t. It’s really great now and I use it whenever possible.

I don’t bother with the readers that liquor stores and small shops have though. They rarely work on the first try but the machines most supermarkets and retailers have work great.
 
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Nicksd84

macrumors 6502a
Mar 4, 2010
576
748
Atlanta, GA
Can someone tell me if there’s special sauce in Apple Pay vs. NFC payments where Apple Pay works when it’s not branded?
 
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tmiw

macrumors 68020
Jun 26, 2007
2,270
518
San Diego, CA
From what I recall Apple actually gets a cut of the fees given to the credit card companies but it is worth it due to the fraud risk reduction so the card companies are on board. Last I heard it was more like 0.2% of the transaction total or something like that and Visa etc. get the other 1.8 or some such. That was all estimates back then though.

Apple gets 0.15% in the US, supposedly much less elsewhere.

I’d venture a guess that many of the holdout 40% are behemoth retailers — Kroger, Publix, Walmart, Target, etc.

Restaurants too. The ones that bother to upgrade to chip are generally not adopting pay at the table or even paying at the front for that matter.
 
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ignatius345

macrumors 68040
Aug 20, 2015
3,867
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I was just travelling in Europe and found Apple Pay worked on a lot of terminals, even when it wasn’t marked. Contact-less payment infrastructure seemed pretty widespread from what I saw.
 
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JosephAW

macrumors 601
May 14, 2012
4,168
5,058
Sad thing that my iPhone 5S with iOS 12 still doesn't support Apple Pay Cash. I know it doesn't have the NFC chip for store readers but I should be able to receive Cash payments or use Apple Pay for online purchases like the mcd app. There's no Plus-Sign in the Wallet app to add a credit card to my dismay. Now I'm looking for an used iPhone 6 just so I can set up Apple Pay Cash.
 
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walstib

macrumors member
Jul 5, 2007
38
73
Carpinteria, California
Training remains an issue.

I always ask if a retailer accepts Apple Pay, and I often get a blank stare. If a quick once over of their hardware looks promising, I’ll suggest we try it. And when it works the clerks just go wow.

I happened twice last week. At a stationary store in Hood River, Oregon, and a train store in Portland.
 
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iModFrenzy

macrumors 6502a
Jan 15, 2015
858
798
Our actions define our legacy
Now I'm looking for an used iPhone 6 just so I can set up Apple Pay Cash.

Might I recommend getting a 6S/SE, the extra 1gb definitely makes a difference.

As for your points about allowing Apple Pay to work on the 5S, I do agree with that. Many retailers use it online. Would be a smart idea to allow it but clearly state that it is to be used for online transactions only(as it would somehow blow up in Apples face if they didn’t).
 
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Pezboy

macrumors member
Nov 23, 2015
63
121
Sad thing that my iPhone 5S with iOS 12 still doesn't support Apple Pay Cash. I know it doesn't have the NFC chip for store readers but I should be able to receive Cash payments or use Apple Pay for online purchases like the mcd app. There's no Plus-Sign in the Wallet app to add a credit card to my dismay. Now I'm looking for an used iPhone 6 just so I can set up Apple Pay Cash.
Sounds like it’s time to upgrade. A 6 year old phone is really missing out on a lot. I kept my iPhone 5s for 4 years. It’s still my favorite iPhone. If they gave all the modern features in that exact form factor I would upgrade to that phone in a second. That being said, you’d be surprised how big of an upgrade the X is.
 
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Aston441

macrumors 68000
Sep 16, 2014
1,649
2,377
Gas pumps and restaurants. It needs to be at gas pumps. And restaurants.

I've been skimmed THREE times this year, twice at gas pumps, once at a restaurant. I'm so sick of swipe only readers. I'm sick of criminal waitresses too now lol.

I've seen Apple Pay pumps only at a new Love's.

I go to Exxon when I can and use their Apple Pay enabled app, but that's still a PITA and carries it's own risks.

Restaurants I've started paying cash only.
 
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chabig

macrumors G3
Sep 6, 2002
8,276
5,553
If I get a cellular Apple watch I won't need a phone or a wallet when I go out.
You said that Apple Pay is the reason you want a cellular watch, but cellular connectivity has nothing to do with Apple Pay. Cellular connectivity isn't required for Apple Pay. A non-cellular watch works just fine. All the cellular watch capability provides is a network connection for data or phone calls.
 
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