Apple says NFC access “not open to negotiation with any bank” By Rian Boden • nfcworld.com • Published 31 August 2016, 10:56 • Last updated 31 August 2016, 10:57 Apple has made clear that allowing access to the NFC technology within its iPhone is “not open to negotiation with any bank”. The assertion comes in a second submission to the Australian Competition and Consumer Commission (ACCC), urging the organisation to reject a request from a group of the country’s banks seeking power to negotiate with mobile wallet providers. “The Commission should reject the application by four of Australia’s largest banks to jointly negotiate the terms and conditions with third party mobile wallet providers and to institute a joint boycott during those negotiations,” Apple says in its 65-page submission. “Apple has tried and failed to negotiate commercial terms with each of the applicant banks except one, which has not even been willing to sign a confidentiality agreement and thus has not yet been provided with a copy of Apple’s initial terms.
Survey reports on use of Apple Pay, Android Pay and Samsung Pay in the US. By Rian Boden • nfcworld.com • Published 31 May 2016, 13:57 • Last updated 31 May 2016, 13:57 More than a quarter of US consumers (27%) with an eligible smartphone have used Apple Pay, Android Pay or Samsung Pay, according to research released by Auriemma Consulting Group (ACG). 39% say they would use mobile payments more if more stores and apps accepted it, while 61% say that they are now replacing cash transactions with mobile payments. “On average, users report that 17% of their discretionary spending was done with mobile pay,” the firm says.
“Even when they find a store that accepts mobile pay, only one third of US mobile pay users (31%) pay that way every time they know it is accepted, most frequently citing that they simply forgot.” “It’s important to remember that less than half the smartphones that US consumers carry are capable of mobile payments,” says Marianne Berry, managing director of ACG’s Payment Insights practice. Apple Pay Adoption. Nine in ten US Apple Pay users have made an in-store mobile payment. By Rian Boden • nfcworld.com • Published 12 January 2016, 13:30 • Last updated 12 January 2016, 13:30 More than nine in ten users of Apple Pay in the US (91%) have now made an in-store payment using a credit card stored on their mobile device and two thirds (67%) have made an in-app transaction, a survey by Phoenix Marketing International has found. The survey, which recorded Apple Pay credit card transactions among 833 Apple Pay users, also found that in-store purchases now account for 62% of total Apple Pay credit card transactions, with in-app purchases accounting for 38%.
Physical retailers with the highest foot traffic for Apple Pay credit card users were McDonald’s and Apple itself, with 38% making at least one transaction in a McDonald’s location over the last five months and more than 40% doing so in an Apple store. Other popular retailers include Macy’s, with 36% of Apple Pay users making at least one payment at a Macy’s store, followed by Subway (32%). Apple Pay to go live in China in early 2016. By Rian Boden • nfcworld.com • Published 18 December 2015, 15:28 • Last updated 18 December 2015, 15:34 Apple Pay will launch in China in early 2016 through a partnership with bank card association China UnionPay and with support from 15 of the country’s banks.
“Apple Pay will roll out to China UnionPay cardholders as soon as early 2016 after relevant tests and certification required by Chinese regulators, with the service itself in compliance with the applicable national mobile payment and financial industry standards in China,” Apple says. “Simply hold iPhone near China UnionPay’s QuickPass-enabled POS terminals with your finger on Touch ID to pay,” the company explains. “With Apple Watch, just double-click the side button and hold the watch face up to the contactless reader to make a purchase right from your wrist.” Sign up to get the most important news of the week delivered to your inbox. Why Apple Wants to Get Into the Unprofitable World of Payments Between Friends. Silicon Valley is obsessed with a particular part of the finance business that involves sending cash to friends using an app.
That’s led to a flurry of options that often aren’t profitable because they charge little to no transaction fees. PayPal and its subsidiary, Venmo, are among the most popular, though they face a growing list of competitors, including Google, Facebook, and Square. Apple plans to get in on the action, too. The world’s most valuable technology company has been talking with banks about introducing its own feature to Apple Pay that will allow users to send money to friends, a person familiar with the plans told Bloomberg last month.
QuickTake My Phone Is My Wallet Person-to-person payment services aren’t cheap to operate, and Apple may lose money on many transactions, said research firm Crone Consulting. Apple isn’t likely to find a way to profit directly from the feature. Apple didn’t respond to requests for comment. Why Bank Issuers Don't Support Apple Pay P2P. Apple Pay Adoption One Year In: Growing (Slow) Apple’s officially made it through Year 1, a time period marked by extraordinary fanfare, debate, and lots and lots of scrutiny. Which, in fairness, is probably what Apple should have expected. First, because they are Apple. And second because Tim Cook rather boldly declared that 2015 would be “the Year of Apple Pay.” This may as well have been an invitation to study Apple Pay incredibly closely for the rest of 2015.
So was 2015 the Year of Apple Pay? Depends on what you’re measuring. In terms of interest and attention and hype, it’s safe to say that Apple Pay won that prize. In terms of adoption among consumers and merchants? Well, not so much. We spent the last year, in partnership with InfoScout, documenting consumer usage. We now have four quarters — a full year — of results to show the trend in consumer trial and adoption, consumers who are capable of using Apple Pay and either did or didn’t. Today, we’re releasing the latest edition. There are two big headlines from the most recent data. Why Apple Pay’s second year will be harder than its first: Forrester. Apple Pay Consumer Adoption Rates Still Slow. Apple has remained relatively quiet on how well Apple Pay is doing, both transaction speaking and user-wise. Until Apple decided to dish out the data, it’s up to analysts and investors to spout off their predictions, and it appears that’s what they’re going to continue to do.
A new Bloomberg article provides the latest projections of just how well Apple Pay is doing and how it’s expected to trend over the next 3-5 years. Citing research from a variety of sources — including PYMNTS and InfoScout’s report about Apple Pay adoption — the conclusion seems to be that Apple Pay is used for just 1 percent of retail transactions. And an Aite analyst suggests it’s going to be a slow burn over the next few years. “People don’t know why it is they’d use Apple Pay,” Jared Schrieber, CEO of InfoScout, told Bloomberg. One note about the Apple Pay data is that it can only tap into anecdotal evidence. Apple Pay also seems to have seen a dip in its committed users. iOS 9 offers up more possibilities for Apple Pay. The iOS 9 upgrade makes Apple Pay a more interesting proposition by adding the option of reward/loyalty cards and store credit/debit cards.
As announced back in June, all such cards will be held in a new app called Wallet that will replace Passbook. Existing cards in Passbook, including Starbucks, gig tickets and boarding passes, migrate to Wallet. Loyalty cards from leading US retailers Walgreens and Kohl’s department stores will be available in the wallet app, with Coca-Cola and Dunkin’ Donuts to follow. Retail-branded credit cards from retailers BJ’s, Kohl’s and JC Penney are also signed up. The capability to link payments to loyalty/rewards cards offers more possibilities for Apple Pay, which at present enables contactless payment in retail outlets. Users can also access Wallet by double-clicking the Home button when their iPhone is locked. Viewpoint: Apple Pay Usage Report - Paybefore.
Despite Apple Pay’s high-profile launch and much attention from the payments industry, recent First Annapolis primary consumer research suggests that only one in five iPhone 6 users has actually made a purchase with Apple Pay. This finding—based on a survey of 1,434 smartphone users we conducted in the first half of 2015—suggests that, while there is much energy and excitement surrounding mobile payments, actual consumer adoption and usage still has a long way to go. Hugh Gallagher is a principal, focusing on mobile/alternative payments, innovation and payments strategy at First Annapolis Consulting.
Hugh has more than 25 years of experience in payments and financial services. He can be reached at Hugh.Gallagher@firstannapolis.com. This article originally appeared in the Fall issue of Pay Magazine, on its way to subscribers now. In Viewpoints, prepaid and emerging payment professionals share their perspectives on the industry. Apple disagrees with Australian banks on price in mobile payment talks. Australia is tipped as one of the next markets where Apple Pay will launch, but the US company must find common ground on how to share fees with the country’s banks, said The Sydney Morning Herald. Apple is pushing for a greater share of the so-called interchange fees, which are paid by merchants, than the Australian banks are prepared to give up.
The US company is pushing for the same amount from interchange fees in Australia as it receives in the US, yet such fees are about half the level in Australia, and the Reserve Bank of Australia wants to see them at an even lower level. This puts a distance between Apple and the banks in the negotiations. Commonwealth Bank of Australia chief executive Ian Narev would not comment on the negotiations with Apple, but talked up local banks’ innovative qualities.
“There is functionality associated with Apple Pay that we have had in the market for 18 months to two years,” he said, referring to NFC-based mobile payments. Apple Pay Declining Use. This time last year, the payments ecosystem was waiting. Everyone knew Apple’s payments play was eminent – but the details remained mysterious. About a month later the mystery was over – Apple Pay was going to be tokenized, bio-authenticated, device-specific (to the newly released iPhone 6), NFC-based and premised on riding the regular payments rails. We found out that issuers were so giddy over being a part of this that they agreed to hand over a piece of their interchange fees but that merchants still had a decision to make about whether or not they really needed NFC tech. Then we waited and speculated. Some opined that the launch of Apple Pay was going to be remembered as the moment that mobile payments went mainstream, others questioned if Apple’s broad and shallow ignition strategy was really going to be to able capture enough consumer loyalty or merchant interest to really make much of a dent in the marketplace.
Disturbing Declines But here’s the killer stat. “Am I surprised? Apple Coming To U.K. Remember that time Apple said it was going to officially launch in the U.K. next week? Fooled you! One accidental tweet alerted the world yesterday (July 13) that Apple was coming soon to the U.K. — and apparently by “coming soon” that tweet actually meant right bloody now because the official launch has happened.
So now U.K. consumers are free to pay the Apple way — as long as what they want costs less than ₤20 as there is still a limit as to how much you can buy via contactless across the pond. That number is expected to go up to ₤30 this fall. And, of course, English consumers must also be customers of one of the partnered banks or credit card companies for the launch. That initial list includes American Express, First Direct, HSBC, Nationwide, NatWest, Royal Bank of Scotland, Santander and Ulster Bank.
Can Apple Pay Make Financial Mark In Canada? Apple Pay hasn’t even made its way to Canada yet and it’s already gaining some negative press. This time, however, it’s not about consumer adoption projection rates. Instead, a report from investment bank Cormark Securities suggests that Apple Pay won’t play a role in giving Canadian banks a revenue boost, Bloomberg reported. In fact, Meny Grauman, an analyst with Cormark, said Apple Pay will likely only have an “immaterial” impact on earnings.
Grauman addressed investors in a note late last week (July 9). The six lenders would would see a profit trim of .23 percent, Grauman suggested, as most estimates peg Apple’s portion of interchange fees to come in at 15 basis points. “Even at a 25 percent adoption rate, which is a very tall order, the EPS impact on the large Canadian banks would still be immaterial to overall earnings,” Grauman told Bloomberg. Apple Pay is set to launch in the U.K. tomorrow (July 14). To check out what else is HOT in the world of payments, click here.
Apple files P2P payments patent. UK iPhone users unsure on Apple Pay. With the Apple Pay launch in the UK looming into view, new research from Forrester suggests the computing giant will have a tough task convincing consumers to put their trust in its services. Just 27% of UK online consumers owning an iPhone would trust Apple to provide a mobile digital wallet but they are still more likely to trust PayPal (43%), a bank (41%), a credit card network (40%), and Amazon (32%), according to Forrester's Technographics data from Q1 2015. In a blog post ahead of Tuesday's launch, Forrester analyst Thomas Husson comments: "Apple still has to demonstrate the added value it will bring to merchants (better experience, faster checkout, incremental revenues, etc.) and brands. Also, Apple needs to create trust among UK consumers. They managed to do so in the US and no doubt trust will increase with the backing of the main banks (except Barclays).
" However, he cautions that "faster adoption in the UK does not mean Apple Pay will scale quickly". Is Apple Going to Launch P2P Payments Next? | Let's Talk Payments. July 3, 2015 By : LTP Team We send and receive money from our friends and family every now and then. Its cash, cheques, and bank transfers most of the times. And nowadays it is Venmo, Square cash and Google wallet transfers, a few times. What if you could start doing this, very securely, from your iPhone? Excited? Apple has filed a patent application titled, “Person-to-Person Payments Using Electronic Devices,” to the U.S. It is clear from the patent application that it wants to target the pain points in P2P today.
It looks more like a proximity P2P payment system and might have remote capabilities as well. Interestingly the patent also says that, apart from using the card on file with Apple (if it exists), it might allow bank apps to be used (if there is no card on file). Exciting times ahead! Apple Pay’s Moves And News. Best Credit Card Processing Solutions for Business in 2015. Apple WWDC 2015 Recap: “Epicenter of Change” Apple Pay Nabs Another Big Retailer. Apple Pay’s Half Million Users? Starwood guests unlock hotel rooms with Apple Watch app. Apple Pay By the Survey. Survey: One In Six iPhone 6 Users Switched From Android. New Insights on Apple Pay Emerge After Spring Forward Event | Lets Talk Payments. Uk.businessinsider. Apple Pay 2.0 Brings the Value.
Apple Pay’s Path Into China Through Alipay And Union Pay Has Hit A Roadblock. A Rough Road Ahead for Google Wallet? Is there a battle looming in the UK between Apple Pay and Zapp? Will Apple Pay Bring Banks And Merchants Together? Apple App Store Smashes Records in 2015’s First Week. Advertisers to get a glimpse of Apple Watch promise, challenge. Is Apple Pay Fizzling? No Way Man, It’s Sizzling! Apple Pay Gains Traction With 1% Of November Digital Payments. Apple Is Already Building Its Next Massive Business And No One Seems To Have Noticed. Apple Pay shows impressive early adoption.
American Online Shoppers Trust Few with Payment Information. How Many Consumers In Apple Pay’s Bushel Basket? AndroidPay could be a thing in China next year. Apple Pay a Bust on Black Friday, New Data Shows. US banks pay high price for cosying up to Apple. CurrentC And The Big Merchant Mess. CurrentC COO Goes On The Defensive. Intriguing Apple Pay Details Revealed. Apple Pay’s Most Unusual Ignition Strategy. ApplePay. Don't hand Apple Pay the mobile payments title just yet. NYT details how Apple and the nation's top banks created Apple Pay in complete secrecy.
New iPhone A Little Too Secure For The Federal Government. Visa details Apple Pay setup process. Apple Pay explodes onto the scene. How Apple Pay works and why it matters for developers. Processors Declare Token Competency Post Apple Announcement. China UnionPay Partners With Apple Pay. Banks Went The Apple Way. Apple Pay | Winners, Losers And Question Marks. Will Apple Pay Flip Debit To Credit? Not All Bankers Are Happy They've Joined Apple Pay.