Apple 'Working Rapidly' to Bring Apple Pay to More Countries

[RedOrchestra]

These places support chip-enabled cards. Try Pay there and you might be surprised!

It's not whether or not they support chip-enabled cards it's whether or not the business has a contactless pay terminal - that's what determines if Apple Pay is accepted.

Having said that, since US consumers have just started receiving chip-enabled cards one would think that any new pay terminals would all include the contactless pay option. I can't even remember the last time I inserted a credit card into a terminal (except for restaurants, McDonald's excluded from that connotation) since we've been on Tap & Go for so long in Canada.

Actually, my memory appears to be quite short - had to insert the CC at the Apple Store to purchase my new 9.7 iPP.

 

[tmiw]

It's not whether or not they support chip-enabled cards it's whether or not the business has a contactless pay terminal - that's what determines if Apple Pay is accepted.

Having said that, since US consumers have just started receiving chip-enabled cards one would think that any new pay terminals would all include the contactless pay option.

Businesses aren't buying terminals that don't have the hardware to handle both. Also, a fair number of places aren't enabling contactless at the same time as EMV, but a lot are too.

 

[69Mustang]

This article is about to "more countries", not America.

See this is what happens when 1. I don't pay enough attention to the post I'm quoting. 2. Drank too much watching the Warriors v Thunder last night. 3. Get a little too over eager trying to be the "this is what your not thinking about guy". I don't even like that guy. Apologies for the error.

This is me quoting your post:

 

[lyschoening]

Apple this morning elaborated on its plans to expand Apple Pay coverage and achieve its goal to deliver the mobile payment service to "every significant market" the company is involved in.

Currently Apple Pay is available in six countries, including the U.S., Canada, the U.K., Australia, and China, with plans already underway to bring the platform to Hong Kong and Spain. Earlier this week the service expanded its presence in Singapore to support five major banks and cover over 80 percent of cards, and VP of Apple Pay Jennifer Bailey says many more rollouts are on the way.

Speaking to TechCrunch, Bailey said that Apple is "working rapidly" in Asia and Europe to extend the service, stopping short of revealing which country would be next. But she did share some insight into what Apple is seeking when it assesses potential expansions.

"First, we look at the size of the market for Apple products," she said. "We also look at credit and debit card penetration, and [existing] contactless payment coverage.

"[But] when we bring Apple Pay to market even when contactless is low, it will grow -- it was 4 percent in the U.S. but is now 20 percent. We also work with our network partners, where we can utilize integration with Amex and Visa, to go to market quickly."

Commenting on China, Bailey said that the service's launch in February had been "really successful" and Apple was "seeing incredible user and developer reception", with a number of prominent consumer tech companies integrating the service into their apps to enable digital payments.

In March, it was reported that the service hit three million provisions inside the country in its first three days. The launch initially covered 12 bank locations across China and that number has now risen to 19. In the U.S., Apple Pay began in October 2014 with support across six bank locations. It now covers 2,500, and the company reportedly has designs on bringing the service to ATMs in the near future.

Apple is also focused on introducing loyalty programs to other markets, having completed its first rollouts in the U.S. Similarly, Apple is working to expand support for online and in-app payments in all markets.

Back in February, leaks suggested that France, Hong Kong, and Brazil are on Apple's expansion list for this year, while CEO Tim Cook hinted this week that India could also be set to get the mobile payment service soon.

Article Link: Apple 'Working Rapidly' to Bring Apple Pay to More Countries

[doublepost=1464367761][/doublepost]Here in Denmark we already got contactless credit cards last year. Just hold the card against the reader and you're done. At this point I don't see how ApplePay would be anything more than a fallback if I'd forget the wallet at home.

 

[American Hero]

Smaller businesses probably will not like you doing that and will charge you extra, but that might be a worthwhile cost vs. dealing with cash.

We've discussed this yesterday. A small business should accept all forms of card payments.

Cash transaction = $10.00
Visa Sig Transaction (3.9%) = $ 10.39
World MasterCard with chip (2.05% + $0.10) = $10.31
Discover Rewards Credit (1.71% + $0.10) = $10.27
American Express Credit and Charge (3.5%) = $10.35.
Visa Debit (0.05% + $0.22) = $10.23
MasterCard Debit (1.55% + $0.04) = $10.20

----------------------------------------------------------------------------------
Cash transaction = $2.00
Visa Signature Transaction = $2.08
World MasterCard with chip = $2.14
Discover Rewards Credit = $2.13
American Express Credit and Charge = $2.07
Visa Debit = $2.22
MasterCard Debit =$2.07

A small business owner simply has to charge $10.39 for the first item (instead of $10.00), and $2.22 (instead of $2) for the second item. It's not rocket science and definitely won't break a business.

 

[tmiw]

We've discussed this yesterday. A small business should accept all forms of card payments.

Cash transaction = $10.00
Visa Sig Transaction (3.9%) = $ 10.39
World MasterCard with chip (2.05% + $0.10) = $10.31
Discover Rewards Credit (1.71% + $0.10) = $10.27
American Express Credit and Charge (3.5%) = $10.35.
Visa Debit (0.05% + $0.22) = $10.23
MasterCard Debit (1.55% + $0.04) = $10.20

----------------------------------------------------------------------------------
Cash transaction = $2.00
Visa Signature Transaction = $2.08
World MasterCard with chip = $2.14
Discover Rewards Credit = $2.13
American Express Credit and Charge = $2.07
Visa Debit = $2.22
MasterCard Debit =$2.07

A small business owner simply has to charge $10.39 for the first item (instead of $10.00), and $2.14 (instead of $2) for the second item. It's not rocket science and definitely won't break a business.

Your assumption that a small business is going to be on interchange-plus pricing is an incorrect one, especially considering the large proliferation of Square readers and the like. And all debit cards aren't going to fall under the Durbin capped rates either.

More importantly, that increase might not be easily passed on to consumers. Say you have the choice between going to CVS or the mom and pop drugstore. The former is going to be able to undercut the latter far more easily such that even if CVS is a bit farther, it'd be more worthwhile for you to go there. It's why a lot of small businesses in rural America go under whenever Walmart comes to town.

Anyway, my original reply was more about what the current situation in the US is like, not what businesses here should do.

 

[American Hero]

Your assumption that a small business is going to be on interchange-plus pricing is an incorrect one

Then it is actually cheaper to be on "exclusive percentage" pricing. Interchange plus pricing is more expensive for smaller cost items, as you can tell. You just strengthened my argument.

Small businesses should have no problem accepting debit chipped/credit chipped and Apple Pay.

especially considering the large proliferation of Square readers and the like.

I have a square reader, it's 2.75% for card present chip cards (which I refuse to take MS cards now) for tap or chipped card present transactions. If I want my funds immediately, it's an extra 1% on top of it, which is usually worth the cost.

More importantly, that increase might not be easily passed on to consumers. Say you have the choice between going to CVS or the mom and pop drugstore. The former is going to be able to undercut the latter far more easily such that even if CVS is a bit farther, it'd be more worthwhile for you to go there. It's why a lot of small businesses in rural America go under whenever Walmart comes to town.

When the business grows, they'll be able to get tier II and tier I pricing. It just gives a business an incentive to do well and grow rather than pinch pennies. Like I said, a business doesn't have to increase prices because of credit cards, they can easily eat the $0.35 cents on a $10 transaction rather than making it $10.35.

 

[tmiw]

Then it is actually cheaper to be on "exclusive percentage" pricing.

That really depends. If most of your customers use debit cards that fall under the Durbin caps, for instance, non-interchange-plus will be more expensive. (Also note that the processors that charge a flat percentage tend to charge a fixed fee as well.)

I refuse to take MS cards now

That's against Visa and MasterCard rules, btw. And a lot of people still don't have chip cards either.

When the business grows, they'll be able to get tier II and tier I pricing. It just gives a business an incentive to do well and grow rather than pinch pennies. Like I said, a business doesn't have to increase prices because of credit cards, they can easily eat the $0.35 cents on a $10 transaction rather than making it $10.35.

Tier 1/2 pricing only kicks in when the business has revenue over a few billion dollars or so. The vast majority of small businesses will never reach that level.

 

[azentropy]

That is nice, but should be working harder on getting places to accept it!

 

[American Hero]

That's against Visa and MasterCard rules, btw. And a lot of people still don't have chip cards either.

I don't run a legit business. I just use it for when people need to pay me. I refuse to accept MS cards. The networks can't come after me for not doing so.

 

[laudern]

bring it to Australia then apple!!! Getting one crappy bank here to sign on is not 'bring it to Australia'. 9/10 stores here already have contactless paymen. We are ready!!!

 

[tmiw]

I don't run a legit business. I just use it for when people need to pay me. I refuse to accept MS cards. The networks can't come after me for not doing so.

Pretty sure they could. Whether they will is another story though.

 

[Gasu E.]

I was gonna say the same thing. it's a vicious circle really. with the amount of places that don't take credit cards I usually have to walk around with cash and mostly don't bother with my card cuz half the time I would not be able to use it. so I'm like f this here's the cash.

when I was in the US i didnt even bother to withdraw money

I was amazed in one trip to Germany, where my hotel (a pension, but close enough-- it had at least a dozen guest rooms) only took cash.

 

[JohnnyTravel]

Unless you live in the Bay Area or something, there are so many features that Apple releases, but 99% of the people never get to use. I live in the Netherlands and have yet to use:

• Apple Pay
• Public transport info in Maps (and Flyover, for what it's worth)
• Apple News
• Siri on the Apple TV
• And for that matter, Dutch Siri on iOS, because searching English titles with Dutch Siri is absolute crap
• Spotlight Natural Language search on the Mac

And that excludes all the the iOS features that Apple introduces, and 99% of the apps never get to use anyway. Apple is great at introducing new features all the time, but having them make any meaningful impact is proving to be very hard for them.

Just used my Apple Watch to pay for a coke @ a train station in Venlo.

 

[Robert.Walter]

I was amazed in one trip to Germany, where my hotel (a pension, but close enough-- it had at least a dozen guest rooms) only took cash.

Can't cheat the taxman if you don't take cash!

 

[American Hero]

Can't cheat the taxman if you don't take cash!

I have to wonder how anyone has credit in Germany.

If you can't use a credit card anywhere, then you probably can't pay your bills online with a debit or credit card either.

How do rich people live there? Carry millions of dollars in their wallet?

 

[kdarling]

Speaking to TechCrunch, Bailey said that Apple is "working rapidly" in Asia and Europe to extend the service, stopping short of revealing which country would be next. But she did share some insight into what Apple is seeking when it assesses potential expansions.

"First, we look at the size of the market for Apple products," she said. "We also look at credit and debit card penetration, and [existing] contactless payment coverage.

In other words, we let our greed determine our Apple Pay rollout priorities.

We look at how much royalty we might be able to get from Apple Pay usage, determined by how many iPhone owners there are, how many terminals, and how hard it's going to be to get a good rate from the banks in that particular country.

So if you live somewhere with relatively few iPhone users, or few contactless terminals, or your banks have tiny capped fees, then you're not even on our radar.

 

[tmiw]

If you can't use a credit card anywhere, then you probably can't pay your bills online with a debit or credit card either.

I'm pretty sure they have bank transfers.

 

[American Hero]

I'm pretty sure they have bank transfers.

Which would drive me crazy.

Planet Fitness tries that and it's ridiculous.

They can just reach into your account and take how much money they want whenever they want to.

Kinda defeats the purpose of having a bank.

 

[tmiw]

Which would drive me crazy.

Planet Fitness tries that and it's ridiculous.

They can just reach into your account and take how much money they want whenever they want to.

Kinda defeats the purpose of having a bank.

"Bank transfer" doesn't imply "other party pulling from your account whenever they'd like". In fact, it's probably push-only in Europe.

 

[American Hero]

"Bank transfer" doesn't imply "other party pulling from your account whenever they'd like". In fact, it's probably push-only in Europe.

Would be nice if it were push only in the states.

 

[bushido]

I have to wonder how anyone has credit in Germany.

If you can't use a credit card anywhere, then you probably can't pay your bills online with a debit or credit card either.

How do rich people live there? Carry millions of dollars in their wallet?

you don't pay bills yourself in most cases, they simply take it from your bank account every month. I like not having to think about it. the one time was supposed to pay a month rent myself I forgot lol its just not the way we do it. you approve them once and if they take too much u talk to ur bank. which btw has never happened to me in 27 years on this earth

 

[American Hero]

you don't pay bills yourself in most cases, they simply take it from your bank account every month. I like not having to think about it. the one time was supposed to pay a month rent myself I forgot lol its just not the way we do it. you approve them once and if they take too much u talk to ur bank. which btw has never happened to me in 27 years on this earth

I like being able to pay my bills late if I need to.

What a stupid way to run a payment system.

 

[bushido]

I like being able to pay my bills late if I need to.

What a stupid way to run a payment system.

that's not the german way! credit and debt is BAD. I remember going over my bank account balance by 1 euro once growing up and my mum lost her s for days.

 

[kdarling]

I like being able to pay my bills late if I need to.

What a stupid way to run a payment system.

It's not stupid at all. Many of us have everything set up on automatic payments.

Now, I used to think like you for credit card payments back when I was young and poor, but once I realized that I was always going to pay them off in full each month, because I don't ever spend more than I have to pay off, then automatic was the way to go for them as well.

The Germans are right: debt is bad (except for mortgages).