Upcoming iOS Update Will Allow iPhones to Accept Credit Cards Directly Using NFC

[one more]

I kind of feel bad for Square Reader. But it’s totally useful where it eliminates the adapter. This is just the next step in technology, assuming the card holder has the built-in chip on the credit card.(Which most financial institutions have converted and/or are converting over to).

I don’t think that this means that Square Reader, SumUp and others will be pushed out of the market altogether. It could just add an extra convenient way of paying into these existing systems.

As others have mentioned, it would be interesting to learn Apple’s cut on transactions.

 

[Jim Lahey]

There has to be some kind of authentication handshake with the card holder’s iPhone, if they have one. Otherwise there will be a wave of credit card fraud and violent crime. I‘m aware that the transaction will obviously be traceable to the perp via their Apple ID, but that won’t stop sophisticated criminals trying, and it won’t stop people being mugged for their credit cards by chancers. It also opens the gates to disputed payments after the fact. Then again we have already heard there’s been AirTags attached to desirable cars and the owners followed home to find their pride and joy has vanished the next morning, so I’m not 100% confident Apple will think it through properly. Wonder if they’ll start selling Apple Faraday Wallets with passcode locks for only $399.99 ?

 

[44267547]

I don’t think that this means that Square Reader, SumUp and others will be pushed out of the market altogether. It could just add an extra convenient way of paying into these existing systems.

As others have mentioned, it would be interesting to learn Apple’s cut on transactions.

It probably doesn’t mean total elimination with the likes of Square reader, but over the course of time post roll-out of this feature, it still takes transactions away from them. But at some point, you would think a company like Square Reader had to realize that this was coming with the integrated chips that are on cards.

But the end factor is, this eliminates any additional hardware you would need to complete a transaction, which when it comes to technology and shortcuts, convenience is king.

 

[contacos]

As usual, this won’t really work for the German market as it is obligatory to give out a printed out receipt since about 2 years ago or so

 

[msp3]

I wonder with all the anticompetitive talks, will Apple allow other apps to take advantage of this, or will it only work through Apple Cash for “security”. If not this will add Square, even Venmo and Cash App to their list of enemies.

Don't be fooled into thinking there are many competitors. Cash App is a Square company (which is itself joined at the hip to Twitter), and Venmo is a PayPal company which in turn owns almost everything else.

 

[sublunar]

Could this spell the end for the ancient iPod touch that’s been used for these in store payment systems? Switching to iPad or iPhone with nfc plus airplay to printer if needed seems like an upsell opportunity.

 

[eduardodfj]

One way or the other Apple is making money off of this.

The convenience store where I buy bread every day has a card reader provided (at a cost) by the bank. The owner has an Android phone. Even if Apple charges nothing, this person would immediatly buy an iPhone and stop paying commissions to the bank.

 

[DrV]

The implications of such a feature would be more profound than it’s apparent simplicity. Expect a backlash against the release of such a feature by the dominant financial institutions who would no doubt see this as yet another incremental step towards collective financial independence away from the parasitic middle-man role these institutions play and rely on playing within our economy.

The ability for humans to transfer wealth between each other instantly, without fees or limitations is a reality these banks & institutions would never want to see come to fruition, not without their overbearing governance anyway.

Interestingly, this (transfer wealth between each other instantly without fees) is reality in many European countries. I have an app which only requires the other party's phone number, and if they have the same app (many, if not most, do), money is transferred in seconds with a few clicks. I can also get the same thing done by using my bank's mobile app and a bank transfer. Sometimes there is a delay depending on the banks, but the euro-area banking system will allow real time transfers between countries in the near future. At no cost to the customer.

(Of course, the customer will always pay one way or another, but there is no transfer cost.)

And no, banks have not gone bust.

 

[1applerules1]

Rip square

 

[DrV]

As usual, this won’t really work for the German market as it is obligatory to give out a printed out receipt since about 2 years ago or so

When will someone tell the German politicians that we are on the 21st century? Digital receipts? This is actually what the EU encourages, so the insistence on using paper is a domestic thing in Germany.

 

[daved2424]

.

 

[cyanite]

This will be so helpful for iPhone owners. Say goodbye to physical credit cards. Never have to worry about losing a credit card.

You mean like ApplePay? We already have that. This is not a replacement for cards, but for receiving payments with cards.

There has to be some kind of authentication handshake with the card holder’s iPhone, if they have one.

Why? This isn’t related to the card holders phone. If the card holder used her iPhone, she’d probably use ApplePay which is authenticated.

 

[TheYayAreaLiving 🎗️]

You mean like ApplePay? We already have that. This is not a replacement for cards, but for receiving payments with cards.


Why? This isn’t related to the card holders phone. If the card holder used her iPhone, she’d probably use ApplePay which is authenticated.

I agree but receiving payments with cards will eliminate having to carry the physical cards honestly. Apple wants you to only carry the Titanium Apple card. That's the bottom line they have for us.

 

[contacos]

When will someone tell the German politicians that we are on the 21st century? Digital receipts? This is actually what the EU encourages, so the insistence on using paper is a domestic thing in Germany.

It was to prevent tax fraud (somehow? don't really understand the relation tbh). I remember it being a big deal because a lot of bakeries had to "update" their systems to allow this "ancient" system

 

[nickhutson]

I can’t wait for this to be US only for the next 25 years.

 

[kirky29]

Wow this would be absolutely amazing for me and my business (potentially!)

 

[votdfak]

WeChat, AliPay...

 

[Jim Lahey]

Why? This isn’t related to the card holders phone. If the card holder used her iPhone, she’d probably use ApplePay which is authenticated.

I understand that. I’m saying there needs to be some sort of authentication setup embedded into the system so that the card holder can authenticate the transaction on their device via iCloud, NFC or some such. When a sizeable portion of people are walking around with a credit card reader in their pocket, that opens up a pretty serious attack vector available to everyone with an iPhone.

EDIT: Perhaps the card holder would have to have the card setup in their own Apple Wallet, and a dialogue pops up on their device to authorise the transaction on the recipient’s device. That could perhaps work if the banks/issuer were involved. There has to be something built into the system or there will be consequences and repercussions.

 

[jaknudsen]

Does that men you could tap two iPhone's together to pay someone?

Or Apple Watch to iPhone? Apple Watch to Apple Watch?

This is much more important than tapping physical cards. If you have an iPhone, you are probably not using physical cards anyway.

 

[Havoc035]

When will someone tell the German politicians that we are on the 21st century? Digital receipts? This is actually what the EU encourages, so the insistence on using paper is a domestic thing in Germany.

But then you have to hand out your email address everywhere. Not a very good solution from a privacy perspective.

 

[cicalinarrot]

Me too. Just tap it against pockets on the subway and your trip is free.

Exactly what I thought, people already steal money in crowded places by just hovering their wallets.
Aren't we just integrating a thing that can do that into very popular phones?
(TBH I admit I may be missing something, this is just the first thing that came to my mind when reading this).

 

[PsykX]

Does that men you could tap two iPhone's together to pay someone?

Or Apple Watch to iPhone? Apple Watch to Apple Watch?

Yes. If you tap your own Apple Watch on your iPhone, the Matrix will crash, stuck in a forever loop, and you will activate the "unlimited money cheat code" in real life.

 

[Abazigal]

But then you have to hand out your email address everywhere. Not a very good solution from a privacy perspective.

Well, Apple has this ability to generate burner emails, no?

 

[Nuno Lopes]

30% Pling. Of note is that another company was already doing it in more open systems. Apple is simply baking similar functionality into is OS while blocking others of doing the same in users smartphones. Again levaraging it’s device business market share to crush the competition on another industry. Another policy change is coming …

One day between you and your money is a x% Apple commission. It’s already between digital businesses and their customers in their Apps.

Will there ever be a Bank of Apple? We already have a credit card …

 

[xxray]

I wish Apple would replicate Samsung’s feature of magnetic swipe on terminals that don’t NFC so that I truly wouldn’t have to worry about ever bringing my credit card anywhere.