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Thread: Banks to Reportedly Pay Fees to Apple for Every Purchase Made via Apple Pay

  1. #1
    What's Jailbreak? Akshay Masand's Avatar
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    Default Banks to Reportedly Pay Fees to Apple for Every Purchase Made via Apple Pay

    According to a report from Bloomberg, Apple will be collecting a fee from banks every time consumers use the company’s new Apple Pay payments solution. The report cites three individuals who claim to be close to the matter who mentioned that the Cupertino California company has created deals with each bank that it has partnered with (JP Morgan Chase, Bank of America, Citigroup and more) that allows the tech giant to do this. The sources didn’t go into details regarding the exact size of the fee but it was mentioned that the fee could either vary or be tied to the value of the purchases made by the consumer.

    During its announcements yesterday, Apple did state that Apple Pay would be enabled at over 220,000 US merchants including McDonalds, Macy’s, Walgreens, Nike and more. Apple Pay will also be compatible with several credit card companies such as American Express, MasterCard and Visa. Those who are skeptical about security behind the initiative should note that Apple Pay will be utilizing the Touch ID fingerprint sensor, a new “Secure Element” functionality and the NFC antenna on the iPhone 6 and iPhone 6 Plus alongside a credit card stored on iTunes to make payments.

    The following was mentioned in the report regarding the swipe fees that banks will have to fork over:

    While that gives the tech company a share of the more than $40 billion that banks generate annually from so-called swipe fees, lenders expect to benefit as consumers spend more of their money via mobile phones and other digital devices, the person said.
    Source: Bloomberg

    Twitter: @AkshayMasand

  2. #2
    This is probably why it took so many years for Apple to adopt NFC payments: They were waiting for a better deal from the banks.

    At some point I think the banks realized that this payment revolution wasn't going to happen without Apple. Meh, just me speculating, but it's a possibility

  3. #3
    iPhone? More like MyPhone jackbauerctu's Avatar
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    You know how the giant mega banks in America have these junk fees attached to them? THIS is why. Banks have to PAY A FEE to apple every time we make a purchase with our phone?? Watch, your monthly "maintenance" fees go up within the next year. Wells Fargo already charges 10 dollars a month for many of their basic checking accounts.

  4. #4
    I thought Apple said that the reason others failed to take off was because they tried to monetize it, implying that they were not going to do so themselves in order to focus on the user. There goes that idea.

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