Originally Posted by
piper28
I think the real question with apple pay is whether stores will actually adopt it or not. Maybe if who they contract with for their credit card processing machines release a new machine that has both apple pay and chip/pin capability in one device, it could happen. But I honestly don't see a lot of retailers running out to add this feature, especially since they *are* going to be having to replace the devices for machines that can handle chipped cards. The other question is whether they'll put up with the additional fee that's going to be tacked on from apple for the privilege. I certainly wouldn't expect to see this in smaller businesses simply because of that fee, there's a number of small business already that would far prefer you do a debit card than a credit card transaction just because of the larger charge with a credit card. (Personally, I feel this is really a large issue with *all* of the digital wallet type systems.)
If any company can pull it off, I think Apple can. The technology isn't new, it uses the same "speedpass" (or whatever they're called) sensors that many stores already have.
As far as the fees go, that's an interesting thought. Marinate on this scenario: Merchants today pay a fee to VS/MC/AX for every CC transaction. Por ejemplo: 25 cents + 1% of the transaction fee. If Apple's model cuts their processing out in favor of going directly to the issuing banks...they could offer a lower rate. They don't require all the infrastructure that VS/MC/AX need to be able to network/process transactions. They just need the software for their phones which are already networked. I don't believe this is the plan today, but it would be an interesting business model if it were...
It will be interesting to learn more about Apple Pay as it comes out. On their site they have a list of merchants and banks that will participate.
http://www.apple.com/iphone-6/apple-pay/