Apple to Get 0.15% Cut of Apple Pay Purchases

POST

MAIL

Posted September 13, 2014 at 4:43am by iClarified

Apple has negotiated a 0.15% cut of payments made using Apple Pay, reports the FinancialTimes. If the service catches on, this could be huge for the company. The U.S. alone sees $12 billion worth of transactions per day.

Bank chief executives fawned about the “exceptional customer experience” and the “exciting move”.
They are also paying hard cash for the privilege of being involved: 15 cents of a $100 purchase will go to the iPhone maker, according to two people familiar with the terms of the agreement, which are not public. That is an unprecedented deal, giving Apple a share of the payments’ economics that rivals such as Google do not get for their services.

“That makes Apple Pay unique,” says Dickson Chu, chief product officer at start-up Ingo Money, who worked at PayPal and, while at Citigroup, on the Google Wallet. “It’s somewhat surprising that Apple was able to negotiate something Google couldn’t.”

It's said that Apple was able to convince so many partners to come on board with Apple Pay because it wasn't disruptive to their business - at least for the time being. Apple’s model “still puts us at the center of payments”, said one bank executive.

Banks may also be willing to lose some revenue in hope that Apple Pay will become popular, driving up transactions volumes and revenue. Also key is the belief that it could significantly reduce fraud through security improvements.

Finally, the service could increase online shopping by giving customers a simple Apple Pay button instead of requiring the need to input credit card information which is tedious, especially on a mobile device.

If you haven't already seen Apple Pay in action, click here to watch a hands-on video. You can also learn more about the service here.

For more Apple news and tutorials, please follow iClarified on Twitter, Facebook, or RSS.

Read More

Apple to Get 0.15% Cut of Apple Pay Purchases

Follow iClarified

Shidzuki Hio - September 13, 2014 at 8:38pm

what? only a .15 of a percent? thats literally almost nothing. I was expecting 1% or so, you people who think you're going to have to start paying premiums to use the service. Ill say it again, so read carefully. ITS NOT 15% it's a hundredth of that. .15%. NOT 15$ out of 100$. .15$ out of 100$. Anyhow i think apple could have negotiated it higher.

Reply · Like

Dyac - September 13, 2014 at 2:59pm

Ooh yeah, long live Apple, f..... Paypal ;PPP

stevenlacross - September 13, 2014 at 10:12am

Fuck apple pay, they don't need more money, I'm still going to use old fashion credit cards, nothing wrong with that system.

gamerscul9870 - September 13, 2014 at 11:18am

Fuck wallets. Using them today is like carrying around CD players instead of iPods. Don't save space and not as much.

Nuck Chorris - September 15, 2014 at 4:53am

Show me your digital driver's license.

Ab08 - October 9, 2014 at 1:26pm

There is much that is wrong with current credit/debit cards, especially if they have a magnetic band. Little better with a chip, but they still have that magnetic band. Insecure is just the first name for it. Easy to fraud. If you're a shop owner, and don't care for being honest, it's very easy to do nasty things. It's infact quite amazing how little frauds there are with todays credit cards.

Vueapp - September 13, 2014 at 9:09am

Of course it will be free to use. The biggest concern will be , do we still earn the proper credit card rewards using them. I think there was some problem with google pay which is one of the reasons it didn't catch on.

Raul - September 13, 2014 at 7:55am

Apple pay is really gonna be the thing in future , just like itunes did to the music industry.

turim - September 13, 2014 at 5:22am

I think it's crucial that the end users is not charged to use Apple Pay. There's no such thing as a free lunch, but many (most?) banks in Norway has free use of bank cards, and payments through smart devices should be the same. At least customers shouldn't see this charge. It must be baked into the final price of a product.