Many Retailers Hesitant About Offering Support for Apple Pay

[MyopicPaideia]

apple must really be asking for quite the transaction fee for everyone to be so hesitant. They really like wielding their power.

Ignorant post. Merchants don't pay Apple a fee for accepting standard NFC payments.

Apple does get a 0.15% transaction fee, but this is paid by the card issuer, not the merchant, and they are willing to pay because they have done their math homework and realised that paying Apple this cut is cheaper than eating fraudulent charge costs that are prevented by the most secure CC payment authorization method to date. Also because they are not trying to hijack the pay,ent process away from the CC issuer.

 

[DCJ001]

Yes, Kmart just announced that they were hacked, today, October 11.

Today is October 10.

 

[spectrumfox]

Today is October 10.

Oh snap, he can see into the future!

 

[SqB]

And no more sleazy merchants tracking me by my card number. Creeps me out when the cash register spits out coupons for stuff I bought last week even though I refuse to use one of those loyalty cards. Mine somebody else's purchases of Bologna and paper towels.

 

[El Hikaru]

I have 5c last year. I won't be joining apple pay within a year anyway.

 

[John.B]

Today is October 10.

Right this minute it's October 11th from Australia to parts of Europe.

 

[Oracle1729]

It's 0.15%, not 1.5%. Big difference when you're talking about millions of dollars in transactions.

The person I was replying to said 1.5%, I don't know what it is, so I was going with that number. I agree it's a significant difference.

 

[MyopicPaideia]

Oh, really. So that 1.5% is coming out of the bank's profit?

The banks are in a line of business where they will pay out more in expenses to operate a service than they make from operating the service?

Of course the retailer is going to pay it. The bank isn't going to give up any money to Apple just because their customer (the retailer) chooses to play nice with Apple.

Ignorant post...again. The banks ARE paying for it, and they are doing so because of the security Pay affords them. They actually will save money in the long run by paying Apple, but saving on annual fraud coverage expenses.

Also, it is 0.15% not 1.5%.

 

[tmiw]

I really don't think we're going to have portable terminals at restaurants any time soon. The new cards in the US won't have a PIN, so there's not really any point unless your restaurant gets a lot of foreigners. I hope I'm wrong though.

Also, I see a scenario where CurrentC beats out Apple and Google, especially since the members of MCX are probably going to pass the savings from not having to pay Visa/MasterCard to users of their app. To my understanding, the merchants don't even need to make much of an investment in POSes--the customer just scans the barcode displayed on the POS with their own phones.

I hope Pay succeeds though. It'd really suck to have the US still use a standard no one else uses.

 

[MyopicPaideia]

Right this minute it's October 11th from Australia to parts of Europe.

Yup, October 11th here (just)

 

[Oracle1729]

Everyone should call the business of the list that says that they will not accept  Pay, ask them if they will accept it, and, if they say that they will not, say, "That's okay. I will shop elsewhere from now on.

This might get them to change their minds.

Wow. Good luck getting people who are not Apple fanatics on board with that plan. Most people just don't care and the retailers know it.

 

[rbgaynor]

Oh forgot subway restaurants nationwide accepts Isis/softcard NFC mobile payments.

Subway's system just went live October 1st - it's not like they've been accepting Google Wallet payments for years.

http://www.pcworld.com/article/2684372/subway-to-accept-nfc-payments-starting-in-october.html

 

[donnaw]

Speaking from experience of working in the retail marketing space, the single biggest reason why it'll be quite a long time before NFC/Apple Pay is ubiquitous, is because of cost. People seem to think it's as easy as flipping a switch to support a new payment format. It's not. It requires an upending of the point-of-sale infrastructure. Not that they shouldn't invest in the future, but it's an EXTREMELY expensive endeavor. It's tough enough for some retailers to even change the way their receipts print out. Changing the kinds of technologies they accept for payment...

We've got a long road ahead of us.

Glad you posted this. People don't realize exactly how expensive this can be. And not only is there the dollar expense but the planning and training. Things have to be planned, budgeted (for large companies this has to be done at least a year in advance), training must be developed, equipment rolled out. It's not unlike rolling out a completely new OS (for you geeks here) except that it will most likely be done as a 'rolling implementation'.

A complicated endeavor. It will certainly take a few years before this type of payment system is ubiquitous. I'm old enough to remember when most places wouldn't take credit cards and this is much, much more complicated.

 

[spectrumfox]

Wow. Good luck getting people who are not Apple fanatics on board with that plan. Most people just don't care and the retailers know it.

Don't forget that most major Android phones can also make purchases at NFC terminals, and have been able to for years. Eventually, it will benefit retailers to implement NFC for payments.

 

[SqB]

Tokenized payments are the future. Whether they are NFC or 2D barcodes produced on your device screen and read by the reader at the checkout (the way I thought Apple would go) this is the only way payments are going to be secure as calculating (hacking) power continues to grow exponentially.

 

[spectrumfox]

Speaking from experience of working in the retail marketing space, the single biggest reason why it'll be quite a long time before NFC/Apple Pay is ubiquitous, is because of cost. People seem to think it's as easy as flipping a switch to support a new payment format. It's not. It requires an upending of the point-of-sale infrastructure. Not that they shouldn't invest in the future, but it's an EXTREMELY expensive endeavor. It's tough enough for some retailers to even change the way their receipts print out. Changing the kinds of technologies they accept for payment...

We've got a long road ahead of us.

Glad you posted this. People don't realize exactly how expensive this can be. And not only is there the dollar expense but the planning and training. Things have to be planned, budgeted (for large companies this has to be done at least a year in advance), training must be developed, equipment rolled out. It's not unlike rolling out a completely new OS (for you geeks here) except that it will most likely be done as a 'rolling implementation'.

A complicated endeavor. It will certainly take a few years before this type of payment system is ubiquitous. I'm old enough to remember when most places wouldn't take credit cards and this is much, much more complicated.

Thank you both for being level-headed and logical. We definitely need more of this here in the forums.

 

[John.B]

And no more sleazy merchants tracking me by my card number. Creeps me out when the cash register spits out coupons for stuff I bought last week even though I refuse to use one of those loyalty cards. Mine somebody else's purchases of Bologna and paper towels.

If ApplePay makes data aggregation difficult for the likes of Acxiom, Intelius, etc., so much the better.

 

[AdonisSMU]

Today is October 10.

They were hacked though.

ABC News Reporting

 

[theotherphil]

You mean you can't use cash anymore???

I'm pretty sure I never said that.

 

[spectrumfox]

I'm pretty sure I never said that.

I was being facetious, sorry.

 

[Oracle1729]

Ignorant post...again. The banks ARE paying for it

Good to see the quality of the american education is as strong as ever. Maybe if you learned a bit about economics your economy wouldn't be collapsing.

 

[SqB]

Glad you posted this. People don't realize exactly how expensive this can be. And not only is there the dollar expense but the planning and training. Things have to be planned, budgeted (for large companies this has to be done at least a year in advance), training must be developed, equipment rolled out. It's not unlike rolling out a completely new OS (for you geeks here) except that it will most likely be done as a 'rolling implementation'.

A complicated endeavor. It will certainly take a few years before this type of payment system is ubiquitous. I'm old enough to remember when most places wouldn't take credit cards and this is much, much more complicated.

Succesful companies have a way of being surprisingly agile when profits and loss are at stake.

 

[gmanist1000]

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

They were an investor a long long time ago. Not anymore.

 

[farewelwilliams]

No, I mean an existing payment standard instead of inventing a new one. Although, Visa and Mastercard went along with it ...

they didn't really invent a new one. it's compatible with most NFC registers?

 

[teknikal90]

hehe

“We’ve learned and struggled for a few years here figuring out how to make a decent phone. PC guys are not going to just figure this out. They’re not going to just walk in.”

November 16, 2006, Palm CEO, Ed Colligan

" We've learned and struggled for a few years here figuring out how to make a decent phone," Colligan said. "PC guys are not going to just figure this out. They're not going to just walk in. "

- Ed Colligan - 11/21/2006

"We’ve learned and struggled for a few years here figuring out how to make a decent phone"(...)"PC guys are not going to just figure this out. They’re not going to just walk in."

- Palm CEO Ed Corrigan in 2006, referring to the iPhone

totally different industry.

Apple brought the modern PC into your pocket with the iPhone. Hence, as a 'PC guy' theyre built to excel in that transition.

the Apple iPhone on the other hand, isn't inherently a bank.