Originally Posted by Grizzly
I know there are people bringing up the point that NFC in the iPhone 6 would make the mobile payment game exclusive to the new hardware, but the "iWatch" has been rumored to include NFC also. While its true then that the iPhone 6 could be used as a standalone device to make payments, what if the "iWatch" does indeed include NFC, and they also fitted in the Touch ID sensor under the screen as seen in previous patents. I could see it working as the "iWatch" wouldn't need a physical home button, and Touch ID isn't tied to a hardware button. It would simply be turned on and brought up on the screen to ID the user once a tap to pay event is started. Then this whole mobile payment initiative wouldn't be exclusive to only the iPhone 6.
Here is a link to the Touch ID patent. http://www.macrumors.com/2013/11/25/apples-plans-to-enhance-touch-id-with-trackpad-capabilities-and-display-integration-revealed/
Originally Posted by Thomas Tupper
Visa, MasterCard, and Amex do seem like basic prerequisites, so this is unsurprising news. I honestly expect we will see Discover in that mix as well.
Apple is the proverbial 10,000 lb gorilla - if Apple indeed does roll out a payment system, it would be unwise for any of the major providers to decline such a partnership.
I am interested in this thread despite the diversion of hacked celeb pics ... Maybe they should implement a TouchID
system on iCloud ... Seriously!
TouchID ... And the NFC/iWallet/iTunes infrastructure (whatever) to support it for major credit card purchases ...
Did you ever consider why the cc companies inundate you with free offers, interest-free transfers and introductory offers, checks, cashback rewards ...
There are at least 2 ways the cc providers make money:
- processing and transactions fees charged to merchants for using the cc service -- usually a minimum transaction charge and a percent of the price of the merchandise
- Interest rates charged to customers when they do not pay their monthly balance in full (very high interest rates)
In fact, even if you pay your cc balances in full (and get a month of free float) the cc providers want you to use their card because of the transaction and processing fees charged to merchants -- the cc providers receive these fees immediately, and in a way have free float use of that money.
Case in point, a relative got her first credit card. a Visa card through B of A -- with a $2,500 limit. Her plan is to use the card to build a credit history -- but pay the balance in full each month to avoid interest charges ... and over time, raise the credit limit, while taking advantage of any cashback rewards.
An interesting thing is this: B of A / Visa offered a $200 one-time, introductory, cashback offer after she spent the first $1,500 of her $2,500 limit. And, bang, as soon as she reached $1,500 (easy) she got an immediate $200 credit (instant gratification). She continued to use the card approaching the limit, and earning small cashback rewards on select purchase. She got her 1st bill and paid the balance in full (harder) so there were interest fees.
Hmm ... The cc provider was willing to give her $200 off -- if she purchased merchandise worth $1,500.
Because they make money every time she uses the card -- and maybe a time will come that she will not be able to pay in full -- and incur interest charges ... a win / potential big win for the cc provider ... Duh!
Why am I wasting your and my time? We could be looking at celeb pictures!
Consider: What other provider gives you money off an expensive purchase -- so you will use their basic services (and potentially use their expensive. extra services)?
Why your smart phone carrier -- that's who ... Also, Duh!
Getting right to it ... Finally!
Because of TouchID and the supporting infrastructure -- the new iPhone 6, new iPads (and maybe the iWatch) are the only devices
that can securely
support the services offered by the credit card companies.
that cc companies want you to use so much that they are willing to pay cash off on the purchase of expensive merchandise ...
In effect, the cc is subsidizing that expensive purchase ...Why, wouldn't the cc companies be interested in subsidizing the purchase of iDevices -- which facilitate and promote the use of their cc services?
.Edited by Dick Applebaum - 9/1/14 at 5:54am