Apple Pay wallet

fanie.dry said:
Yeh, there won't be any cost for the transaction. Visa and Mastercard don't allow per transaction costs for credit cards.
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Agreed. They will most likely have merchant costs (where the merchant pays over 0.1% of the purchase value to Apple), but other than that there shouldn't be any costs to the users. Merchant costs are where the money is with credit cards, that's why Virgin doesn't any fees for their credit cards, as they get a cut of each transaction in the form of merchant fees. At least that's how I understand it.
 
The Consultant said:
Agreed. They will most likely have merchant costs (where the merchant pays over 0.1% of the purchase value to Apple), but other than that there shouldn't be any costs to the users. Merchant costs are where the money is with credit cards, that's why Virgin doesn't any fees for their credit cards, as they get a cut of each transaction in the form of merchant fees. At least that's how I understand it.
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I'm not sure how the US is set up, but here's how it works in SA.

Merchant pays merchant fees to it's acquiring bank. Acquiring bank pays interchange fees to Issuing bank. Issuing bank charges cardholder monthly fees.
 
I don't think apple will be taking a slice for this, I think they are after the CC number so they can push that "instant purchase" on you later.
 
2012 said:
I don't think apple will be taking a slice for this, I think they are after the CC number so they can push that "instant purchase" on you later.
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I think they already had a large amount of those numbers already.
 
fanie.dry said:
Don't be fooled. Apple is not a charity organization.
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At the same time, how do you get market share when your solution costs more (adding apples share to the transaction) than the already hard to de-throne card?
 
2012 said:
At the same time, how do you get market share when your solution costs more (adding apples share to the transaction) than the already hard to de-throne card?
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how do they get market share? the same way they sell there phones. they same way people by Verimark.
 
fanie.dry said:
Well, remember there are different ways to do an online purchase. In south africa there is basically 3 ways to do it.

Card not present - This means the card number, cvv and expiry is used in the transaction, and nothing else to authenticate the transaction (the SA banks are being forced to move away from this)

3DSecure - Same as card not present, but extra security is added by means of a one time pin. More secure, and this is where the banks are being forced to move from the above type.

AMT - This is new. Authenticated Mobile Transaction. This is a card not present transaction, but with PIN present. Your ATM pin is used to authenticate the transaction as you would at POS.

I would assume that they are implementing CNP. Not sure what authentication type they use, and by authentication type I mean something that is recognized by the bank. Don't think our banks will by into the whole fingerprint thing. Bio-metrics is not high on our banks lists of priority.
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I don't think apple will do that, I really think the best solution is to be just a wallet - provide the card details when requested and use the thumbprint to unlock those details.

The support behind handling anything to do with the transactions outside their own domain would be far to large and uncertain to risk brand damage?
 
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fanie.dry said:
how do they get market share? the same way they sell there phones. they same way people by Verimark.
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Well, you'd need my businesses support (you need to know where to settle the money right?), but if you are scraping a bit off the top on top as well, I'm not about to invest a couple grand into tech to provide for a few apple users. They will most likely be carrying a CC on them and I can use my already implemented solution.

The deals that the banks give big businesses are almost impossible to break. You want to take 0.1% of PnP's profit? Good luck. And the small guys can't afford the upfront investment. It's a tough market.
 
2012 said:
I don't think apple will do that, I really think the best solution is to be just a wallet - provide the card details when requested and use the thumbprint to unlock those details.

The support behind handling anything to do with the transactions outside their own domain would be far to large and uncertain to risk brand damage?
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You mean provide card details to the merchant from the wallet? Not happening, already said that they aren't providing card details to the merchant.
 
fanie.dry said:
You mean provide card details to the merchant from the wallet? Not happening, already said that they aren't providing card details to the merchant.
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Hmmm, then I don't see how this will work. How does apple know where to settle the money?
 
2012 said:
Hmmm, then I don't see how this will work. How does apple know where to settle the money?
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Each card or each iPhone (unsure on this, gut says it's each card) is assigned a unique Device Account Number which is stored on the dedicated chip similar to Touch ID. When payment is made the device account number along with a transaction code is used to process the payment.
 
Hush9300 said:
Each card or each iPhone (unsure on this, gut says it's each card) is assigned a unique Device Account Number which is stored on the dedicated chip similar to Touch ID. When payment is made the device account number along with a transaction code is used to process the payment.
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Umm, no. Thank bank needs your card number, they'll never start excepting some number that apple just made up.

2012 said:
Hmmm, then I don't see how this will work. How does apple know where to settle the money?
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It's a normal card not present transaction. Your card details are extracted from your wallet and sent to the acquiring bank (which will send it on to the issuing bank) for authorisation. The acquiring bank settles the merchant (the merchant involved is part of the transaction), and the acquiring bank is settled via interbank settlement from the issuing bank.
 
whatwhat said:
RIP ScanPay and all the other QR mobile payment systems.
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ToxicBunny said:
Thats my thought as well....
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The QR code is just to get information about the transaction, not to perform the transaction. The whole issue with this, is that it is a card not present transaction which the SA banks are starting to move away from with 3DSecure and AMT. CNP attracts higher fees and the liability of a disputed transaction is on the merchant. With 3DSecure and AMT the liability shifts to the issuer, and the fees are lower for the merchant. The merchant have no incentive to implement another way of implementing another way of processing a CNP transaction.
 
fanie.dry said:
Umm, no. Thank bank needs your card number, they'll never start excepting some number that apple just made up.
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That's what the Apple website says. The banks obviously have to be aware of such device specific numbers to work and hence they've been partnered with.

As per the website no card info is made available to merchants or transmitted when payment occurs.

http://www.apple.com/iphone-6/apple-pay/
 
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Hush9300 said:
That's what the Apple website says. The banks obviously have to be aware of such device specific numbers to work and hence they've been partnered with.

As per the website no card info is made available to merchants or transmitted when payment occurs.
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If that is the case it will never fly in South Africa. The banks will never ever do this.

Do you have a link for me?
 
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