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Apple

Apple to get 15 cents for every $100 worth of transactions carried out via Apple Pay

posted by Victor H. / Sep 15, 2014, 9:34 AM

Apple to get 15 cents for every $100 worth of transactions carried out via Apple Pay

Apple Pay was one of the biggest announcements the company made last week, but it is only now that we get some additional details and clarity about the new payment system. First, it’s clear that with Pay, Apple is entering the financial business directly, and as a newcomer with a large scale, it has a good chance of changing it.

One of the biggest transformations might turn out to be in the commissions that cash-less transactions carry: rather than charging a hefty fee, Apple will only get 15 cents for transactions of every $100.

That translates into a 0.15% fee, multiple times less than the 2.75% services like Square will charge you for a similar operation.

Apple's 0.15% fee is much lower than that of competing services

Interestingly, Apple has managed to negotiate lower rates than participating banks usually accept for credit card transactions. How is this possible? Turns out that the banks are betting on Apple Pay being an enabler that would help them reach a much larger scale, getting transactions that have not been passing through their credit cards.

It’s worth noting that Apple Pay has gotten huge support by retail chains like Starbucks, McDonalds, and Walgreens to name a few, all of which will support the system. Some popular stores, however, will not accept the new system, and Wal-Mart and Best Buy are the two most prominent ones.

source: NY Times, Financial Times

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67 Comments

1. darkkjedii

Posts: 31598; Member since: Feb 05, 2011

Noble.

posted on Sep 15, 2014, 9:36 AM 3

44. designerfx

Posts: 76; Member since: Mar 26, 2013

Huh? Square charges 0 for an operation, and google charges zero. This is what apple is charging the recipient, not the user of the service. They're probably paying the 2.7% and then taking 15 cents for themselves in addition. What a bunch of BS through creative wording.

posted on Sep 15, 2014, 2:37 PM 4

2. cncrim

Posts: 1590; Member since: Aug 15, 2011

I dont care who can bring it to main stream, just bring it on. I use google wallet now but only select store support it ..... I'm sick of carry multiple credit card in my wallet.

posted on Sep 15, 2014, 9:49 AM 4

28. Philipand96

Posts: 103; Member since: Jul 12, 2014

Starbucks & Mcdonald already have contactless point of sales POS terminals installed All Apple have done is said LINK your credit card to an iPhone and we will make 15c per transaction Unless other business are willing, or Apple pay for these terminals to be installed then the NFC based Apple Pay is not going to take off I have a contactless payment card, My Samsung & Nokia phones have NFC security in Apple is biometric touch ID But NF has not take off in a big way as NEW POS has to be installed, when they do crdit cards will have this also Apple bandwagon

posted on Sep 15, 2014, 11:44 AM 0

3. KingDingaLing

Posts: 324; Member since: Oct 11, 2013

"If it don't make dollas, it don't make sense"

posted on Sep 15, 2014, 9:51 AM 1

4. WendyFromCircus

Posts: 40; Member since: Sep 02, 2014

Shut up and take my 15 cents Apple :)

posted on Sep 15, 2014, 9:52 AM 3

45. designerfx

Posts: 76; Member since: Mar 26, 2013

They're taking 2.7% + 70 cents and apparently an extra 15 cents. You're just not seeing the 2.7 + 70c. Enjoy!

posted on Sep 15, 2014, 2:38 PM 0

5. LINADVS

Posts: 29; Member since: Jun 14, 2014

Looking forward to not needing such an overstuffed wristlet

posted on Sep 15, 2014, 9:52 AM 0

10. XperiaFanZone

Posts: 2280; Member since: Sep 21, 2012

Then don't overstuff it.

posted on Sep 15, 2014, 10:12 AM 2

6. Vexify

Posts: 570; Member since: Jun 16, 2014

Now NFC will be widely useful in the ***US*** now that Apple is making this work big time. 250+ stores and every one of their locations already ready for friday, and hundreds more counting. Can't wait to finally use NFC on my Nexus and put my Touch ID to work on my iPhone 6

posted on Sep 15, 2014, 9:55 AM 0

7. darkkjedii

Posts: 31598; Member since: Feb 05, 2011

Well said bro, apples inclusion of NFC is gonna take it to the Max. Friday starts a new chapter, for me. I'm a pay with cash type, but that's about to change.

posted on Sep 15, 2014, 9:59 AM 1

9. Vexify

Posts: 570; Member since: Jun 16, 2014

No doubt about that bro. Im also a cash guy. This'll be exciting. Just gotta remember Ca$h i$ King!

posted on Sep 15, 2014, 10:06 AM 1

12. darkkjedii

Posts: 31598; Member since: Feb 05, 2011

Exactly lol, nothing like cash.

posted on Sep 15, 2014, 10:19 AM 0

8. Scott93274

Posts: 6040; Member since: Aug 06, 2013

I have Google Wallet, but up till now it's been rather pointless other than to track amazon.com purchases as no one really supports it. If it takes Apple to get this NFC business off the ground then so be it.

posted on Sep 15, 2014, 10:03 AM 4

15. bestmvno

Posts: 251; Member since: Mar 07, 2014

Have you tried to use it anywhere? Where I am, there are quite a few places that except it. It is not available of course everywhere I shop regularly, maybe half a dozen places. Do an online search for mastercard paypass, and you will find a store locator that will let you know essentially everywhere Google Wallet should be supported in your area.

posted on Sep 15, 2014, 10:43 AM 0

23. Scott93274

Posts: 6040; Member since: Aug 06, 2013

To be honest, I never really looked into it. I will do this though. Thanks.

posted on Sep 15, 2014, 11:21 AM 0

14. BobbyDigital

Posts: 2125; Member since: May 29, 2014

The US market is way behind the Japanese and others. NFC payments have been used world wide for years now.

posted on Sep 15, 2014, 10:39 AM 1

29. cncrim

Posts: 1590; Member since: Aug 15, 2011

OK asian market most of the time have the first hand on the electronice, NA/EU market usually behind in small electronic stuff, but we(mean US, CAN, EU) are the one can deliver it to main stream.......... why $$$$$$$$ Now, when come to our military it's opposite, so for some ...... don't take the wrong augm

posted on Sep 15, 2014, 11:47 AM 0

34. KillgoreTroutTime

Posts: 433; Member since: Jan 06, 2014

You know how big the US is compared to Japan, yes?

posted on Sep 15, 2014, 12:16 PM 0

50. BobbyDigital

Posts: 2125; Member since: May 29, 2014

You do know Japan is 10 years ahead of the US in mobile technology, yes??

posted on Sep 15, 2014, 2:56 PM 1

56. willard12 unregistered

Then why does the least technologically advanced smartphone dominate market share there? They're 10 years ahead, but an OS that just enabled 5 year old NFC is about to dominate there.

posted on Sep 15, 2014, 5:38 PM 0

62. BobbyDigital

Posts: 2125; Member since: May 29, 2014

Simple. Marketing. Plain and simple. The iPhone is marketed as a status symbol. A luxury item. And people(no matter how shallow it is)love to have that status symbol. But of course, being that you iF@nboys are in serious denial that the iPhone is so popular only due to marketing and not actual features because you guys are mainlining that apple flavored straight to your veins.

posted on Sep 15, 2014, 7:25 PM 1

65. willard12 unregistered

Oh Bobby, you obviously didn't notice my LG Prada avatar, the phone the iphone copied. Hence, my point on the iphone incorporating 5 year old technology and selling it. However, I think it's more attributable to the dislike of all things Korea in Japan. But, I have no idea why it outsells Sony there. Either way, if Japan is ahead in mobile tech, there should be a home grown OS rather than US developed android, ios, and windows.

posted on Sep 15, 2014, 8:34 PM 0

67. BobbyDigital

Posts: 2125; Member since: May 29, 2014

Japan does have a homegrown OS. Started in 1984. ITRON(also goes by ulTRON). It's just not as popular or feature packed as the other OS's on the market. It's still used in some devices though and it even powers their fax machines. And while Japan is still a decade ahead of the US in terms of mobile tech, the Japanese love US pop culture and the like. Hence the high adoption of US based products Android and iOS.

posted on Sep 16, 2014, 12:05 AM 1

16. BobbyDigital

Posts: 2125; Member since: May 29, 2014

After the whole iCloud fiasco they want people trust them with their credit card and banking info? #NoBueno

posted on Sep 15, 2014, 10:47 AM 2

24. c.hack

Posts: 614; Member since: Dec 09, 2009

Only people dimwitted enough to think that a few celeb's passwords being hacked has anything to do with this. Get a clue and stop trolling mindlessly.

posted on Sep 15, 2014, 11:21 AM 2

46. BobbyDigital

Posts: 2125; Member since: May 29, 2014

I have a clue. Several of them. And iCloud and the iPhone have been hacked before "iCloudgate". But mindless Apple fans don't want to hear that.

posted on Sep 15, 2014, 2:50 PM 0

35. KillgoreTroutTime

Posts: 433; Member since: Jan 06, 2014

Perhaps you should educate yourself before making comments.

posted on Sep 15, 2014, 12:17 PM 0

49. BobbyDigital

Posts: 2125; Member since: May 29, 2014

I'm quite sure I'm far more educated in these matters than you are. A cursory Google search will show you all you need to know about how many times the iPhone has been hacked and compromised. Now why don't you educate yourself before opening your mouth to defend your little toy.