Thursday, September 11, 2014

Apple Pay can become the cash cow for Apple – 99mac

Apple’s new mobile payment system has been described as a more convenient and secure way to make payments; but it can also prove to be a really good deal for Apple.

During the event on September 9 announced Tim Cook” a whole new kind of service, “which turned out to be the mobile payment system, Apple Pay. 99mac have previously reported evidence that Apple negotiated with the card companies and America’s five largest banks on favorable transaction fees when paying with the new system.

It now looks like that the contracts are even more favorably than was previously known. According to Bloomberg, Apple has entered into separate agreements with the banks which means that the Cupertino company will receive a fee each time one of their devices are used to make a purchase. It would mean that Apple will receive part of the revenue that the American banks currently collects through mobile transactions – a sum said to be $ 40 billion annually, equivalent to 284 billion.



Growing market

According to reports, the banks are positive especially for the broad user base of Apple products is believed to drive the already growing market of mobile payments. The advantage for consumers is expected to be smooth handling and safety, which is believed to lead to higher sales and consumption.

report refers to sources familiar with the agreement, and does not mention the size of Apple’s portion of the transaction fees. It is possible that the fee is a percentage rate of the purchase price rather than a fixed fee.

symbol for NFC payment.

The new system looks thus appears to be a favorable business for banks, consumers and Apple. The challenge is now estimated to have Apple pay to break through on a wide front at the dealers. If the report is true that Apple negotiated to allow the transaction counted under the same tariff payments with physical card method can with Apple Pay very well be the preferred. This time payment with Touch ID are faster and smoother than normal card payment with PIN.

If the system is also driving an increased willingness to buy, they should be 220 000 venues at the launch in October will Apple accept Pay soon be even more.

Stripe caught on

While trading online is mentioned in Apple’s presentation of Apple Pay. From the outset, supported in part apps from companies like Starbucks, Groupon, Target and Uber. On its website also states Stripe they will have support for Apple Pay by their customers can build support directly into their apps. Stripes competitors Paypal has not been invited to participate in the collaboration, according to ReadWrite. Paypal has developed its own system for making payments, and is reported to have been interested in a collaboration.

In the current situation, however, may pay with Paypal in Apple’s iTunes store, Apple’s new payment systems will be assumed. It is not known whether customers will therefore be able to perform the Apple Pay transactions from their Paypal account or if they will need to enter a credit or debit card to use Apple Pay.

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