• Apple Pay Details Surface and Reveal that Apple Gets 0.15% Cut of Every Transaction

    Details about the upcoming Apple Pay mobile payment system are surfacing with a recent report claiming that Apple will get a 0.15% cut f every Apple Pay transaction conducted over NFC. This particular value is higher than what Google managed to get for its Google Wallet initiative. The new info adds to an earlier report which noted that Apple will be collecting bank fees for customer purchases.

    One of the main reasons behind the move is because Apple’s payment system doesn’t infringe on traditional credit card payment networks, unlike other programs that are backed by large retailers. Instead of higher transaction fees banks are looking to make up the difference through a higher volume, which is hopefully driven by adopting Apple Pay. It’s likely that many Apple iOS device owners may start using Apple’s system instead of paying with cash.

    Another reason banks were willing to partner with lower transaction fees is because Apple’s payments solution is tokenized. What this means is that card numbers and other sensitive information is replaced with generated codes. As a result, the system is thought to be more secure than swipe-to-pay methods. Last but not least, Apple Pay will be available on the iPhone 6 and iPhone 6 Plus handsets as well as the upcoming Apple Watch.

    Source: Bank Innovation, Financial Times
    This article was originally published in forum thread: Apple Pay Details Surface and Reveal that Apple Gets 0.15% Cut of Every Transaction started by Akshay Masand View original post
    Comments 3 Comments
    1. Donnutt's Avatar
      Donnutt -
      That's kind of small though...
    1. blinxtom's Avatar
      blinxtom -
      Quote Originally Posted by Donnutt View Post
      That's kind of small though...
      It sounds small...
      but .15 %

      Imagine only $1000 was spent in a day by 20 people. That's $1.50.

      But multiply that by hundreds and thousands?

      It adds up
    1. CZroe's Avatar
      CZroe -
      I thought Apple wasn't going to monetize it, since they blamed that for their competitors failing to take off.
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