Many Retailers Hesitant About Offering Support for Apple Pay

[Oracle1729]

Gonna be a long and slow road. Hopefully this doesn't end up a niche like thunderbolt / firewire / etc. I'd love to be able to just go to the grocery store, pick up a few things, flash my phone and be done. But it's a ways from getting there yet.

Well TB and FW flopped because they were just too expensive for too little benefit.

With ApplePay, Apple expects a cut of every transaction, it's more expensive than debit or credit processing. So what's in it for the retailers. Fanatics on this forum may take their business elsewhere. The average person will keep their plastic, in which case why should any retailer pay the Apple tax?

 

[smcarter]

NFC Is Expensive

The expense for upgrading to NFC is considerable. The devices can cost upwards to $1700 per credit card terminal. Not all POS vendors support NFC, so retailers have to wait for an update.

The requirement that retailers support the new chip credit cards should hasten support for NFC, since most of the credit cards terminals that support the chip cards also support NFC. However, not always.

Also, new 2015 PCI 3.0 requirements put on retailers by the credit card companies may also speed up the adoption of NFC.

My guess is that by early 2016, most retailers will support NFC.

 

[verpeiler]

They will have a lot of frustrated customers if they are the last to come aboard. It's like a place that only accepts cash.... sorry, but I don't shop at those places because I don't carry cash!

In a few years people will just not carry their credit cards. And when someone says "sorry we don't have NFC!" I'll say "sorry, I don't carry credit cards anymore!"

Nonesense... that's something completely different from "only accepting cash".

 

[Sheza]

NO UPDATES OR CHANGES NEEDED FOR STANDARD NFC POS SYSTEMS TO ACCEPT PAY!!!!!

IF YOUR CARD ISSUER SUPPORTS PAY THEN ANYWHERE IN THE WORLD THAT ACCEPTS NFC PAYMENTS AT A POS TERMINAL ACCEPTS YOUR CARD WHEN YOU USE PAY. PERIOD.

Soooooooourrrrrccccceeeeee

 

[Enabledobject]

In before "McDonalds doesn't own Chipotle".

Anyway, on a more serious note. Although I try to avoid McDonalds whenever possible, just wondering how Apple pay will work at a drive thru.

 

[coolspot18]

They will have a lot of frustrated customers if they are the last to come aboard. It's like a place that only accepts cash.... sorry, but I don't shop at those places because I don't carry cash!

In a few years people will just not carry their credit cards. And when someone says "sorry we don't have NFC!" I'll say "sorry, I don't carry credit cards anymore!"

Nah, the cash culture will always be around unfortunately...

Anyway, on a more serious note. Although I try to avoid McDonalds whenever possible, just wondering how Apple pay will work at a drive thru.

They hand you a terminal and you tap your phone against it.

 

[SqB]

I've also noticed that while it seems a handful of major stores are going to support NFC and Apple Pay soon, no major sit-down restaurants are on that list.

None at all.

So those people here in the forums who will only patronize businesses that accept Apple Pay must not plan on going out to eat with their friends or family anytime soon.

When the waiter brings a check, they certainly don't bring an NFC pad for you to tap your phone on to pay for your meal.

They will be bringing the terminal to the table. It is inevitable.

Other option, bring me a receipt with a code (QR maybe) where I go online to your website to pay.

The idea of handing over your insecure card is done. Anyone not moving to the new technology will bear a huge burden of liability.

 

[darkslide29]

McDonald's owns Chipotle. How can Chipotle not be on board?

LOL, edit your comment so people stop telling you McDonalds has been out of Chipotle since 2006. I was going to tell you again for the 100th time, but then I saw it's still going on page 11. That would just be mean.

 

[Shin3r]

I wonder if many merchants don't want to have a payment system called Apple Pay.

Maybe they do not want to be seen as being involved with Apple with what most people. even techs and banking people I know, think is a proprietary system even though it is not. I can see them as not wanting to offend customers who have the other phones. One day Google and Microsoft will add the same technology to their phones and stores will add it for the 2015 rules change and that will be how things are done. But not everyone wants it to be called Apple Pay.

They don’t have to be seen “being involved with Apple”. All they need is nfc capable terminals that will accept nfc. It’s a sideways wifi logo.

 

[smcarter]

Speaking of Kmart and Sears not wanting to adopt apple pay/NFC payments, which would be a MUCH more secure way of handling payments...

http://www.cnbc.com/id/102078876

"Sears' Kmart stores were hit with a data breach that compromised some shoppers' credit card information, the company said Friday."

It will be awhile before the average consumer will be using Apple Pay or NFC in the store. Most phones do not support NFC yet and changing customer behavior is a very slow process. It will happen, but not right away.

 

[darkslide29]

In before "McDonalds doesn't own Chipotle".

Anyway, on a more serious note. Although I try to avoid McDonalds whenever possible, just wondering how Apple pay will work at a drive thru.

I've gone through drive thru's where the credit card terminal is sticking out of the window, NFC enabled too.

 

[SqB]

Speaking of Kmart and Sears not wanting to adopt apple pay/NFC payments, which would be a MUCH more secure way of handling payments...

http://www.cnbc.com/id/102078876

"Sears' Kmart stores were hit with a data breach that compromised some shoppers' credit card information, the company said Friday."

As I said, "frequent and trivial". Maybe I should adjust my earlier mentioned timeline for adoption.

 

[spectrumfox]

They will be bringing the terminal to the table. It is inevitable.

Other option, bring me a receipt with a code (QR maybe) where I go online to your website to pay.

The idea of handing over your insecure card is done. Anyone not moving to the new technology will bear a huge burden of liability.

What?

You think sit-down restaurants will completely change the way they do business and suddenly start bringing NFC terminals over to tables with the check just because Apple decided to put an NFC chip in their phone?

I wish I shared your unique sense of optimism.

 

[coolspot18]

When the waiter brings a check, they certainly don't bring an NFC pad for you to tap your phone on to pay for your meal.

Is this so shocking

This is how we do it in Canada. Pretty standard issue, been like this for the last decade. You'll get use to it.

 

[MyopicPaideia]

Is this true? How does that work?

Because we have these terminals everywhere in the UK.

Yes this is true. If an American has Pay active on their phone and goes on a trip to the UK, they can use it at any NFC POS terminal. The POS terminal will treat it just like any other contactless credit card. Won't know the difference.

 

[bozzykid]

Wait, there are still Best Buy stores?

There are over 1,000 in the US, so yeah.

 

[marioguarneros]

They will jump in eventually, It hasn't even been rolled out yet so hold on and see.

There has never been a better time for businesses to upgrade their POS to enable NFC payments.

Like many here mentioned Apple is not starting the contactless payment revolution as many people already use Google Wallet and contactless cards, Apple (whether many here like it or not) just made a lot of noise and WILL CHANGE how fast this will be adopted, particularly with the new upcoming regulations in the US.

Now for the rest of the world Apple Pay will spread like wildfire as NFC/Contactless is already been well received.

I don't get why so many people want to see Apple fail in every new endeavour and come here to attack Apple fans or just people using Apple services so viciously.

 

[DEXTERITY]

The USA are probably the last first world country to not use chip cards yet!

Because we are slowly turning into a third world country in many ways

 

[yg17]

I was in Best Buy the other day and the PIN pad prominently displayed the NFC payment logo. Doesnt any retailer that accepts NFC automatically accept Apple Pay?

 

[coolspot18]

Pay

Your icons are annoying.

If an American has Pay active on their phone and goes on a trip to the UK, they can use it at any NFC POS terminal.

Only if the UK terminal supports tokenization... which it may not.

 

[bozzykid]

These retailers will not have option. NFC is coming and they will have to adopt whether they like it or not.

How is that true? I think most will adopt NFC the next time the retailers update their systems but it is not mandatory to add NFC.

 

[SqB]

It will be awhile before the average consumer will be using Apple Pay or NFC in the store. Most phones do not support NFC yet and changing customer behavior is a very slow process. It will happen, but not right away.

Those who chose not to have smartphones will be issued a token generating, NFC card, keychain or similar fob.

 

[mec31]

McDonald's owns Chipotle. How can Chipotle not be on board?

McDonalds sold Chipotle some years ago.

 

[darkslide29]

I've also noticed that while it seems a handful of major stores are going to support NFC and Apple Pay soon, no major sit-down restaurants are on that list.

None at all.

So those people here in the forums who will only patronize businesses that accept Apple Pay must not plan on going out to eat with their friends or family anytime soon.

When the waiter brings a check, they certainly don't bring an NFC pad for you to tap your phone on to pay for your meal.

They will be bringing the terminal to the table. It is inevitable.

Other option, bring me a receipt with a code (QR maybe) where I go online to your website to pay.

The idea of handing over your insecure card is done. Anyone not moving to the new technology will bear a huge burden of liability.

Oh, they're working on that too. You will be able to use ApplePay at some restaurants (so long as you use OpenTable). The bill will be updated on the app, you'll be able to add the tip, and use applepay with touchID to pay.
I think they demo'd this at the keynote? I don't remember where I saw it now.

http://www.prnewswire.com/news-rele...-payments-for-restaurant-goers-274504121.html

 

[V.K.]

No, the terminals do not have to be replaced. Apple Pay uses standard NFC. However, the payment processor needs to implement "tokenization".

I wonder if the existing payment e-wallets from the Canadian banks implement tokenization or if more work will be required to support Apple Pay.

Here's more details about the tokenzation services:

http://newsroom.mastercard.com/2014...-service-mdes-making-digital-payments-happen/

http://usa.visa.com/clients-partners/technology-and-innovation/visa-token-service/index.jsp

I know that several banks in Canada are looking at Apple Pay, so its probably coming, but who knows how long before all the technical issues are worked out.

Thanks. That was helpful and clarifies things quite a bit. I hope this can implemented quickly in Canada then. Banking industry here only has a few major players that control the vast majority of the market (same as in US I believe) and Apple didn't seem to have a problem in getting the big US banks on board.