So you tell me you are going to pay taxes for a credit card machine you do not own?
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Apple to Collect Fee From Banks for Every Purchase Made with Apple Pay
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So you tell me you are going to pay taxes for a credit card machine you do not own?
The ultimate progression will be for banks to stop issuing cards. Look at belly and merchant loyalty cards, it looks like we may not have to carry a wallet full of cards just tip get our low-priced gas!
Can't wait for Apple to get into that market...they said they were taking on the wallet and staring with credit cards.
Such a move will require Apple to stray away from its consumer hardware experience core into financial services, so they may not like to go in.
But from an infrastructure perspective, the banks and point of sale terminals are already owned and operated by other companies. Apple will just have to replace Visa/ MC/ AMEX man-in-the-middle and deal with banks / POS terminal operators. ....And they would need to keep servers up and running 24 x 7
Good point. I hadn't made the connection with my bank dropping its debit rewards and regulation. Another reason for me to dislike the new regs. It used to be against Visa and MasterCard contract to require a minimum purchase, but "consumer protections" now allow a minimum. This does not help consumers nor does restricting debit merchant fees.
You're missing my point. Someone on here pointed out that having a credit card terminal would force you to record all your sales and hence remit sales tax on all your sales. Not having the terminal would allow you to only take cash and underreport your sales and underpay your sales tax.
Such a move will require Apple to stray away from its consumer hardware experience core into financial services, so they may not like to go in.
But from an infrastructure perspective, the banks and point of sale terminals are already owned and operated by other companies. Apple will just have to replace Visa/ MC/ AMEX man-in-the-middle and deal with banks / POS terminal operators. ....And they would need to keep servers up and running 24 x 7
Their consumer hardware expertise? Like how they got into the music business, or the movie business? Or the television business? Or the retail sales business?
Pay means that Apple IS in the financial services business and the fact that it is the merchant services provider for 1.3 million apps and millions of pieces of music means that has been for over a decade...we just weren't looking.
Yeah but the minimum purchase prevents small retailers from dropping card acceptance. Smaller businesses don't only pay a a % but also a transaction fee. This could be 25-30 cents. On a dollar purchase the merchant is paying 32 cents on credit card fees, guaranteeing they lose money.
A few years ago the entire profit for all convenience stores was around 6 billion dollars. Those stores paid 6.5 billion dollars in credit card processing fees.
That is a market issue. American Express takes the position that it's worth higher fees. Some merchants object. We accept American Express...it's worth it to us. Instead of legislation, let merchants negotiate. Apple does not impose a minimum, but it does aggregate multiple daily purchases. The market can resolve these problems. It already creates fervent competition among MSPs. I know cuz I get 10 phone calls a day telling me so.
Their consumer hardware expertise? Like how they got into the music business, or the movie business? Or the television business? Or the retail sales business?
What you say is true. But all those ventures were tied to promoting more of Apple's hardware/ ecosystem sales. Anyways, the point above was in context of a response to another user where Apple pay expands from its current scope into a full fledged Visa/ AMEX/ MC competitor.
As for the financial processing, the 1.3 million apps will be drowned out by the billions and billions of transactions they will encounter as a (hypothetical) full credit processor. Everything from chewing gum to groceries to new tires will be going through their servers. They'll have some scaling to do!
Well to be fair - just about no one in Japan takes credit cards which is why the prepaid IC cards took off so quickly.
You mean the fact that unlike Google Wallet, this will be profitable? Because in terms of what it does and where it works it is the same as Google Wallet...
Oh yes, I can totally understand that.
I don't find purchasing with credit cards that troubling either, not as difficult as Apple would make it seem in the video.
But Apple Pay may have me considering going contact-less just for the novelty of it all, especially since I do find myself going to those listed stores often.
No, it isn't. I don't consider touch ID to be any more secure than a 4 digit PIN with a lockout policy, and both are very secure.
Now, I am a little confused by the format Google Wallet sends data in - it may be much less secure than most contactless implementations. I was pretty shocked. However, even that isn't a major difference in how the product works.
Not the way it is implemented by Apple, it isn't using your whole fingerprint. It is a hash of certain elements.
Not quite. Missed a few things that are important to some people.
1: Touch ID
2: you don't have to open an app and wait for it to load
3: Don't you have to sync Google Wallet before you use it or something (not sure on this one, thought I read that somewhere)
An app doesn't have to be open for Apple Pay. I just walk up, put it up there and confirm with my finger print. No need to wait for an app to load. Plus knowing it will only work with my finger print is nice too.
Verizon and AT&T blocked Google from having access to the secure element on the phone (Nexus, S4, etc...) They did this to push their payment platform, ISIS.
Google implemented a work around that ties you phone to your Google account with a PIN. The secure element is a virtual is not on the phone. It is stored with Google and your phone is they key.
The only reason Apple will be able to push this is because they don't let carriers touch their software. So Verizon and AT$T can't disable it like they did with Google.
This is nothing new.
No app has to be open for Google Wallet, you do have to enter your PIN and tap again if it is locked and it is easier to open the app first, but you can set the PIN timeout as high as 24 hours so you enter PIN once and just tap the rest of the day.
This also offsets the convenience benefit of Touch ID.
I use Google Wallet all the time and have no clue what you mean by 3. You have to enter your cards - just like with Apple Pay. That's it.
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That has nothing to do with the data format sent. Google moved to Host Card Emulation to get around the secure element issue, but you can still transmit the data in whatever format. HCE is actually better, and I'm SHOCKED Apple didn't decide to use it. The benefit of HCE is because EVERYTHING is in the cloud, it is MUCH easier to track consumer behaviour for marketing purposes. Not that Google couldn't from transactions anyway, but HCE forces a network connection and that also provides valuable data (were you on WiFi at the store? The cell network? Etc... very valuable data in aggregate I'm SHOCKED Apple isn't using HCE to help them collect)
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All you have to do is disable the security check for 24 hours, so anyone can make purchases with your phone in that time!? How convenient!
Are you just that out of touch with reality? Look at gas stations, in states where it is legal every single one offers a cash discount. Look at small mom and pop stores, the vast majority have a credit card minimum or a credit card surcharge, in states where it is allowed.
If you think you aren't paying more to use a credit card you are either woefully ill-informed or lying.
