• The Reason Why Apple Wants to Enter the World of Person to Person Money Transfers



    Analysts claim that if Apple does get into person-to-person money transfers via Apple Pay, the company stands to lose money on each transaction in the short term. That being said, the company is willing to accept the losses as a way to drive adoption of its mobile payment service. To be more specific, setting up and validating a new account could cost Apple anywhere between 50 cents and $3, on top of which Apple would have to pay at least 25 cents per transaction. Generally speaking, companies such as PayPal don’t generate much revenue from person to person transfer instead pulling money from business transactions instead.

    Any involvement in P2P transfers would likely be a means of encouraging Apple Pay adoption with the hopes of the increased usage spilling into retail. Research firm Crone Consulting speculated that adding P2P could double usage of Apple Pay by iPhone owners within 18 to 24 months. This is because P2P services tend to be a “viral” application which means that someone sent cash through an app often has to register with the same app to receive it.

    The Cupertino California company was reported to have spoken to several banks about P2P transfers back in the month of November. The company may even partner with an existing network, clearXchange, which already has the support of banks. Regardless of the case, Apple isn’t expected to charge financial institutions for personal transfers. If Apple does enter the market, the Cupertino California company will face tough competition. Aside from PayPal and its Venmo subsidiary, which control a large chunk of the mobile payment space, companies like Square and even Facebook are entering into the arena.

    We’ll have to wait and see what happens.

    Source: Yahoo (Finance)
    This article was originally published in forum thread: The Reason Why Apple Wants to Enter the World of Person to Person Money Transfers started by Akshay Masand View original post
    Comments 20 Comments
    1. unison999's Avatar
      unison999 -
      I hope Apple Pay do not take off in retail, because that means increase in cost for retailers (2~4% from credit card processing fee now have to add Apple Pay cost) and you know it will be the consumers that ultimately pays for it. Every retailer automatically add 2~4% to calculate cost of the product already because of credit cards, with Apple Pay adaptation that means Apple Pay fee on top of that!
      As a consumer I will refrain from using Apple Pay for as long as I can, so retailer will be less inclined to accept Apple Pay...
    1. jsuddu0109's Avatar
      jsuddu0109 -
      Quote Originally Posted by unison999 View Post
      I hope Apple Pay do not take off in retail, because that means increase in cost for retailers (2~4% from credit card processing fee now have to add Apple Pay cost) and you know it will be the consumers that ultimately pays for it. Every retailer automatically add 2~4% to calculate cost of the product already because of credit cards, with Apple Pay adaptation that means Apple Pay fee on top of that!
      As a consumer I will refrain from using Apple Pay for as long as I can, so retailer will be less inclined to accept Apple Pay...
      Like it or not - you're fighting an uphill battle. Slowly but surely, Apple Pay is gaining ground
    1. Perceptum's Avatar
      Perceptum -
      Quote Originally Posted by jsuddu0109 View Post
      Like it or not - you're fighting an uphill battle. Slowly but surely, Apple Pay is gaining ground
      I have only notice one person trying to use Apple Pay. The person became so frustrated, that they ended up paying with a credit card.
    1. jsuddu0109's Avatar
      jsuddu0109 -
      Quote Originally Posted by Perceptum View Post
      I have only notice one person trying to use Apple Pay. The person became so frustrated, that they ended up paying with a credit card.
      I think it'll just take time for it to catch on. For me, it's much quicker and easier than having to swipe my card, especially at places where I have to insert my card and wait (30 seconds to a minute sometimes) for the chip to be authorized
    1. Eonhpi's Avatar
      Eonhpi -
      by the time it takes to use apple pay u could already made two card swipes purchases
    1. StaceyMJ86's Avatar
      StaceyMJ86 -
      I love using Apple Pay more now since all my bank and credit cards have the chip and it take longer to complete my transaction without Apple Pay.
    1. vinaygoel2000's Avatar
      vinaygoel2000 -
      Quote Originally Posted by Eonhpi View Post
      by the time it takes to use apple pay u could already made two card swipes purchases
      I doubt I can make two card swipe purchases in 3 seconds.
    1. fleurya's Avatar
      fleurya -
      Quote Originally Posted by unison999 View Post
      I hope Apple Pay do not take off in retail, because that means increase in cost for retailers (2~4% from credit card processing fee now have to add Apple Pay cost) and you know it will be the consumers that ultimately pays for it. Every retailer automatically add 2~4% to calculate cost of the product already because of credit cards, with Apple Pay adaptation that means Apple Pay fee on top of that!
      As a consumer I will refrain from using Apple Pay for as long as I can, so retailer will be less inclined to accept Apple Pay...
      As a person that works in finance for a larger retailer I can say with confidence this is patently false!

      Transaction fees are not higher for Apple Pay transactions than any other credit card transactions. The banks do not charge the retailer. They do pay a small fee to Apple, but they are more than made while on that fee due to the savings from fraudulent activity and its related cost.

      Fraud is one of the biggest costs to credit card issuing banks. With the tokenization of Apple Pay combined with biometric security to use it, fraud with Apple Pay is 0. Banks are happy to pay a small fee to Apple to get rid of rampant fraud.

      The only additional cost to retailers is new pinpads that can accept phone payments, which will cost far less than what you are suggesting.

      EMV will significantly reduce fraud but not eliminate it is a their gets ahold of your card in the US. That's because in the US banks are stupidly sticking with signatures rather than changing to using a PiN like European card issuers do.
    1. fleurya's Avatar
      fleurya -
      Quote Originally Posted by Perceptum View Post
      I have only notice one person trying to use Apple Pay. The person became so frustrated, that they ended up paying with a credit card.
      The person you saw must be an idiot or at the very least a first time user. My first time using it took about 10 seconds and only that long because I didn't quite know how to use it.

      All you have to do is touch, not press, the home button and hold the phone close to the payment device and you're done. It is literally that easy, and it's extremely fast. It take less than 5 seconds for me every time.

      Compared to taking my wallet out, pulling the card, swiping the card and putting the card back and my wallet back in my pocket, Apple Pay is definitely faster. And now that we have to use EMV, which can take 10-20 seconds for the machine to read the chip alone, not to mention everything else done in the process, Apple Pay and other mobile payment options are extremely fast!
    1. fleurya's Avatar
      fleurya -
      I hope Apple gets into this because the way they made mobile payment so quick and easy is highly encouraging. My only hope is that they do partner with a network that is usable by people on other mobile devices like Android or Windows because an OS specific service would be limiting and annoying.
    1. Perceptum's Avatar
      Perceptum -
      Quote Originally Posted by fleurya View Post
      As a person that works in finance for a larger retailer I can say with confidence this is patently false!

      Transaction fees are not higher for Apple Pay transactions than any other credit card transactions. The banks do not charge the retailer. They do pay a small fee to Apple, but they are more than made while on that fee due to the savings from fraudulent activity and its related cost.

      Fraud is one of the biggest costs to credit card issuing banks. With the tokenization of Apple Pay combined with biometric security to use it, fraud with Apple Pay is 0. Banks are happy to pay a small fee to Apple to get rid of rampant fraud.

      The only additional cost to retailers is new pinpads that can accept phone payments, which will cost far less than what you are suggesting.

      EMV will significantly reduce fraud but not eliminate it is a their gets ahold of your card in the US. That's because in the US banks are stupidly sticking with signatures rather than changing to using a PiN like European card issuers do.
      I hate to shake your confidence, but according to Apple, this is not entirely true. When using Apple Pay from a store's app, the transaction is treated as card not present transactions. Those transactions have higher fees than if you swipe your card.

      https://support.apple.com/en-us/HT204274
    1. fleurya's Avatar
      fleurya -
      Quote Originally Posted by Perceptum View Post
      I hate to shake your confidence, but according to Apple, this is not entirely true. When using Apple Pay from a store's app, the transaction is treated as card not present transactions. Those transactions have higher fees than if you swipe your card.

      https://support.apple.com/en-us/HT204274
      Wow, where did you learn to read? You better go back to elementary school and slap your teacher, because she failed at teaching you!

      From the site:

      "Are there additional fees to accept Apple Pay?
      No. Apple doesn't charge any additional fees.

      Are Apple Pay payments charged as card present or card not present?
      Payments made using Apple Pay in stores are card present transactions. Payments made using Apple Pay within apps are card not present transactions."

      It only registers as card not present when using it within apps. NOT when purchasing at stores, which is what we are talking about here. Even if it did come up as card not present, it's only an additional 0.5% on average: a far cry from the additional 2-4% BS.
    1. Perceptum's Avatar
      Perceptum -
      Quote Originally Posted by fleurya View Post
      Wow, where did you learn to read? You better go back to elementary school and slap your teacher, because she failed at teaching you!

      From the site:

      "Are there additional fees to accept Apple Pay?
      No. Apple doesn't charge any additional fees.

      Are Apple Pay payments charged as card present or card not present?
      Payments made using Apple Pay in stores are card present transactions. Payments made using Apple Pay within apps are card not present transactions."

      It only registers as card not present when using it within apps. NOT when purchasing at stores, which is what we are talking about here. Even if it did come up as card not present, it's only an additional 0.5% on average: a far cry from the additional 2-4% BS.
      You just proved my point. Apple Pay through a store's app will have higher fees then swiping a card. You also gave the additional cost, "0.5% on average".

      I never said there was any additional cost to using Apple Pay (credit card fee + Apple Pay fee), but described when Apple Pay would cost more to use over swiping your card.
    1. Perceptum's Avatar
      Perceptum -
      Quote Originally Posted by fleurya View Post
      The person you saw must be an idiot or at the very least a first time user. My first time using it took about 10 seconds and only that long because I didn't quite know how to use it.

      All you have to do is touch, not press, the home button and hold the phone close to the payment device and you're done. It is literally that easy, and it's extremely fast. It take less than 5 seconds for me every time.

      Compared to taking my wallet out, pulling the card, swiping the card and putting the card back and my wallet back in my pocket, Apple Pay is definitely faster. And now that we have to use EMV, which can take 10-20 seconds for the machine to read the chip alone, not to mention everything else done in the process, Apple Pay and other mobile payment options are extremely fast!
      Couldn't the problem been with the phone?
    1. fleurya's Avatar
      fleurya -
      Quote Originally Posted by Perceptum View Post
      You just proved my point. Apple Pay through a store's app will have higher fees then swiping a card. You also gave the additional cost, "0.5% on average".

      I never said there was any additional cost to using Apple Pay (credit card fee + Apple Pay fee), but described when Apple Pay would cost more to use over swiping your card.
      You really, really need to learn how to READ! And while you're at it, try learning about somethign ebfore you try to act like you know anything about it!

      First of all, you said 2-4%, which is completely false, proving immediately that you were talking out your *** when you were attempting to present factual information.
      Second, that 0.5% fee is only for purchases through your mobile phone, not in brick and mortar retail store where you "swipe" your card.
      Third, ALL online purchases by credit card are "card not present" transactio nand have the same 0.5% bump in transaction expense!
    1. fleurya's Avatar
      fleurya -
      Quote Originally Posted by Perceptum View Post
      Couldn't the problem been with the phone?
      Maybe their specific phone, or the specific terminal they were attempting to use, but it's not indicitive of how Apple Pay normally works.

      To judge the entire process off of one annecdotal incident is being short-sighted.
    1. Perceptum's Avatar
      Perceptum -
      Quote Originally Posted by fleurya View Post
      You really, really need to learn how to READ! And while you're at it, try learning about somethign ebfore you try to act like you know anything about it!

      First of all, you said 2-4%, which is completely false, proving immediately that you were talking out your *** when you were attempting to present factual information.
      Second, that 0.5% fee is only for purchases through your mobile phone, not in brick and mortar retail store where you "swipe" your card.
      Third, ALL online purchases by credit card are "card not present" transactio nand have the same 0.5% bump in transaction expense!
      What post did I say 2-4%?


      Sent from my iPhone using Tapatalk
    1. Perceptum's Avatar
      Perceptum -
      Quote Originally Posted by fleurya View Post
      Maybe their specific phone, or the specific terminal they were attempting to use, but it's not indicitive of how Apple Pay normally works.

      To judge the entire process off of one annecdotal incident is being short-sighted.
      My point exactly. Not sure why the other poster call the person an idiot.


      Sent from my iPhone using Tapatalk
    1. fleurya's Avatar
      fleurya -
      Quote Originally Posted by Perceptum View Post
      What post did I say 2-4%?


      Sent from my iPhone using Tapatalk
      It was actually the original poster that said 2-4%. But the fact still remains that Apple pay transactions, either in person or online, are handled just like other types of credit cards transactions, with the same cost to the retailers.
    1. Perceptum's Avatar
      Perceptum -
      Quote Originally Posted by fleurya View Post
      It was actually the original poster that said 2-4%. But the fact still remains that Apple pay transactions, either in person or online, are handled just like other types of credit cards transactions, with the same cost to the retailers.
      How about spending less time telling others to learn how to read and start learning yourself, stop jumping to conclusions, and learn how to spell.

      Post what ever you want, I will not be replying to anymore of your comments.


      Sent from my iPhone using Tapatalk
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