Apple Pay is primed to launch as one of the most secure and convenient digital payments solutions ever devised, but certain popular retailers may slow adoption by refusing to offer support due to a conservative stance on next-gen commerce or conflict with their own ambitions in the sector.
The Key point: in 2015, EVERY MERCHANT will be FORCED to purchase NFC-Compatible Credit Card Processing Terminals FOR EVERY cash register.
This is because of two factors coming into law:
1. EVERYBODY'S CREDIT CARDS are being REPLACED by CHIPPED CREDIT CARDS as used in Europe to prevent fraud. These quire new compatible card processing equipment. Every bank and credit card company will be spending millions of dollars to do this transition.
2. ANY MERCHANT not using the new terminals IS LIABLE FOR ANY FRAUD on the credit cards they process. The credit card companies no longer have to eat the loss of fraud, merchants will. Avoiding losses due to fraudulent payments is a huge incentive for merchants to switch to the new NFC-Compatible Credit Card Processing Terminals.
Thus, even if current retailers are unwilling to adopt Apple Pay, in 2015, merchants will be forced to purchase Apple Pay compatible Credit Card Processing Terminals - even Best Buy, Walmart, and others who want to create their own credit card or payment system.
Apple knows this. So it is only a matter of time.
And since HALF of smartphone users in the United States use iPhones, had within 2 years, nearly all of them will have iPhone 6, 7, or 8s which are ALL NFC compatible. And since the number of iPhone users will only grow larger, and iPhone users SPEND LOTS OF MONEY, Apple Pay will have on ENORMOUS WEIGHT AND MOMENTUM.
Merchants who ignore the wealthier and freely spending iPhone users do so at their own risk. Only bottom dwelling companies like Walmart can hold out and ignore Apple Pay.
Companies that want to move up in the world, like Sears, will love to be first in line to take Apple Pay. They stand to increase their sales.
I think that pretty much the same thing I just said. Thanks.
[QUOTE] I would like to point out if you read the article this one is based off of, most don't say "no". They say they are not ready imlying they don't have the hardware in place. Even BP says they won't be ready until 2016. So as of October 2015 merchants will be %100 responsible for the liability of the fraud if they are not up to standards layer out by the credit card companies like Visa and MasterCard wich say they need to be using chip and pin or a system as secure like NFC and apple pay. Currently the credit card companies are eating the loss as part of the buisness model. So this is the incentive for merchants to update the card readers. Gas stations have until 2017 because of the extra complexity of updating gas pumps. So they will all be ready soon within a year or they are taking the risk of not only being publicly outed but also being responsible for the dollar amount being lost if they are not up to date. Chip and pin or NFC and pin has been around since 1999, the U.S. is one of the last countries to move to this model and the card companies are changing the policies to make this happen. It's a proven system, maybe not the best but way better then what we are using today. Apple has figured out a way to add to the chip and pin model making it more secure with randomized token authentication. Because it's build on top of chip and pin and makes it more secure without reveling the card number to the merchant or at the terminal making it difficult for middle man systems to grab any useful information adding to the prevention of fraud, and this is why the card companies and big banks are backing this model. [/QUOTE]
I suppose retailers might be put off by the fact that the payment is anonymous and of course they prefer the customer uses their in store credit card which makes more money in interest charges esp. Macy cards and they make money selling your spending profile to other companies like your email, phone number, address and zip code. Retailers typically make more profit off cards than actual sales too.
I know that gasoline retail are champing at the bit to get Apple Pay because fraud is rampant at the pumps. I have inside info on that but I cannot say which major will be onboard or I will get into trouble. Another question is if debit cards will be included or not, because a PIN is needed for that and I'm not sure if Apple pay can do that?
Yes Apple Pay does accept Debit Cards from all the partner banks. Apple Pay IS Durbin Amendment compliant.
I really do hope you're right regarding gas station chains accepting Apple Pay. To be sure, I'm hoping for Costco Wholesale & Costco Gas to accept Apple Pay - but that seems a little unlikely in its current form. Apple Pay currently does not support Loyalty or merchant programs - so no information is shared. This does not work for Pharmacies or membership stores like Costco.
Guess they won't be getting my business then. Simple as that. I'm tired of these monkeys getting hacked and my credit card stolen. Looking at you Delta Airlines, Home Depot, Target, etc.
I can't wait to give some retailers the finger this holiday shopping season. The only question is which one to give them: my TouchID'd thumb or the middle one?
Seeing as iTunes Radio has yet to arrive in England, I presume that we won't see widespread adoption of ?Pay for at least a year here. I suspect it'll take three to five years before we start to see most big businesses offering it, longer for small businesses.
So, Kmart is unwilling to adopt Apple Pay, announced on the very day they have a credit card security breech. Not that I think for one minute that that will change their perspective.
How does anybody with a conscience shop at Walmart? Here is the perfect excuse (if you don't have one already) to avoid that store like the plague it is.
I know that many do not like to use some of those stores anyway. I myself try to avoid Walmart. However, for everyone else, you should make a point of saying something to the managers of the stores. As one poster suggested a few weeks ago, have them ring up your big screen tv only to be shocked when they say they don't support ApplePay. Tell the manager why you are leaving without the TV. The old cliché is true, if enough people do it....
I suppose I can understand this. The merchant's themselves, unlike the card issuers and consumers,
don't particularly benefit from the increased security, so have little incentive to purchase compatible equipment,
if they haven't already.
What I think they are overlooking is the same rationale that made cards popular in the first place.
Ease of use and ready acceptance remove impediments to more casual and impulsive spending...
What merchant doesn't like that? OK, they all do, but if you already have cards to whip out anyway?
.
Not entirely true. Soon the liability for fraud is set switch to the retailers if they haven't upgrade to chip/pin technology
When I travel to the U.S. I'm always uncomfortable using my card. For Europeans it's strange to hand over your card at the end of a meal for example, and then be handed a receipt on which to write the tip, with the actual amount you're paying invisibly being entered after you've left. I don't like the lack of chip and pin, anyone could just swipe my card. Chip and PIN is used everywhere over here.
After having a succession of data breaches, joy would think they'd be all over, never wanting to touch a card number again. I guess that is why Target ® be like 'hell yeah!'
So, Kmart is unwilling to adopt Apple Pay, announced on the very day they have a credit card security breech. Not that I think for one minute that that will change their perspective.
id wand someone from the media to come right out and aske them.
Funny, because some of those chains, like Sears, BBB, along with the likes of Best Buy, are somewhat dying chains, especially Best Buy, so it would be in their best interest to support any means which can attract potential buyers to their emptying stores...
For me, being in Canada, and not having the fortune of being able to utilize ? Pay (yet), it's not very relevant. I already avoid the likes of Best Buy and Walmart like the plague, so them supporting ? Pay won't make me shop there any more than if they shun it.
Seeing H&M and Coach shun ? Pay is shocking to me, as a LOT of their customers use iPhone's, so it would be a match made in heaven for them. Curious what made them be holdouts for this system... In any case, it would appear the systems, policies, and politics, of the transaction infrastructure world are just as fragmented as the Android OS, hope ? can stand their ground and muscle in some sanity to this chaos.
A lot of people are saying the cost of hardware for merchants is a barrier. It does make me wonder how chip and PIN became ubiquitous in the UK. Even the smallest family run shops and cafes have wireless handheld terminals to take card transactions, and many accept contactless (NFC) payments already here, so why should it be any different in the US? I'd assumed that the banks provide the hardware as part of their merchant services.
Maybe, maybe not. yes it's Apple but not everything they do is roses (remember Ping). And folks are more likely to be faithful to a merchant than insisting on a particular way to pay. At least for now. By the time they start to make payment demands, many companies will be up to speed on some system. Might be Apple Pay. Or like with Best Buy and Walmart it might be something else.
sorry with all of the recent data breaches its my way or no way. I live in a place where I can afford to be choosy with whom I give my information an money.
Comments
Apple Pay is primed to launch as one of the most secure and convenient digital payments solutions ever devised, but certain popular retailers may slow adoption by refusing to offer support due to a conservative stance on next-gen commerce or conflict with their own ambitions in the sector.
The Key point: in 2015, EVERY MERCHANT will be FORCED to purchase NFC-Compatible Credit Card Processing Terminals FOR EVERY cash register.
This is because of two factors coming into law:
1. EVERYBODY'S CREDIT CARDS are being REPLACED by CHIPPED CREDIT CARDS as used in Europe to prevent fraud. These quire new compatible card processing equipment. Every bank and credit card company will be spending millions of dollars to do this transition.
2. ANY MERCHANT not using the new terminals IS LIABLE FOR ANY FRAUD on the credit cards they process. The credit card companies no longer have to eat the loss of fraud, merchants will. Avoiding losses due to fraudulent payments is a huge incentive for merchants to switch to the new NFC-Compatible Credit Card Processing Terminals.
Thus, even if current retailers are unwilling to adopt Apple Pay, in 2015, merchants will be forced to purchase Apple Pay compatible Credit Card Processing Terminals - even Best Buy, Walmart, and others who want to create their own credit card or payment system.
Apple knows this. So it is only a matter of time.
And since HALF of smartphone users in the United States use iPhones, had within 2 years, nearly all of them will have iPhone 6, 7, or 8s which are ALL NFC compatible. And since the number of iPhone users will only grow larger, and iPhone users SPEND LOTS OF MONEY, Apple Pay will have on ENORMOUS WEIGHT AND MOMENTUM.
Merchants who ignore the wealthier and freely spending iPhone users do so at their own risk. Only bottom dwelling companies like Walmart can hold out and ignore Apple Pay.
Companies that want to move up in the world, like Sears, will love to be first in line to take Apple Pay. They stand to increase their sales.
[URL=http://money.cnn.com/2014/10/10/news/companies/dairy-queen-malware/index.html]http://money.cnn.com/2014/10/10/news/companies/dairy-queen-malware/index.html[/URL]
[QUOTE]
I would like to point out if you read the article this one is based off of, most don't say "no". They say they are not ready imlying they don't have the hardware in place. Even BP says they won't be ready until 2016.
So as of October 2015 merchants will be %100 responsible for the liability of the fraud if they are not up to standards layer out by the credit card companies like Visa and MasterCard wich say they need to be using chip and pin or a system as secure like NFC and apple pay. Currently the credit card companies are eating the loss as part of the buisness model. So this is the incentive for merchants to update the card readers. Gas stations have until 2017 because of the extra complexity of updating gas pumps. So they will all be ready soon within a year or they are taking the risk of not only being publicly outed but also being responsible for the dollar amount being lost if they are not up to date. Chip and pin or NFC and pin has been around since 1999, the U.S. is one of the last countries to move to this model and the card companies are changing the policies to make this happen. It's a proven system, maybe not the best but way better then what we are using today. Apple has figured out a way to add to the chip and pin model making it more secure with randomized token authentication. Because it's build on top of chip and pin and makes it more secure without reveling the card number to the merchant or at the terminal making it difficult for middle man systems to grab any useful information adding to the prevention of fraud, and this is why the card companies and big banks are backing this model.
[/QUOTE]
I suppose retailers might be put off by the fact that the payment is anonymous and of course they prefer the customer uses their in store credit card which makes more money in interest charges esp. Macy cards and they make money selling your spending profile to other companies like your email, phone number, address and zip code. Retailers typically make more profit off cards than actual sales too.
I know that gasoline retail are champing at the bit to get Apple Pay because fraud is rampant at the pumps. I have inside info on that but I cannot say which major will be onboard or I will get into trouble. Another question is if debit cards will be included or not, because a PIN is needed for that and I'm not sure if Apple pay can do that?
@Paul94544
Yes Apple Pay does accept Debit Cards from all the partner banks. Apple Pay IS Durbin Amendment compliant.
I really do hope you're right regarding gas station chains accepting Apple Pay. To be sure, I'm hoping for Costco Wholesale & Costco Gas to accept Apple Pay - but that seems a little unlikely in its current form. Apple Pay currently does not support Loyalty or merchant programs - so no information is shared. This does not work for Pharmacies or membership stores like Costco.
So, Kmart is unwilling to adopt Apple Pay, announced on the very day they have a credit card security breech. Not that I think for one minute that that will change their perspective.
Hear hear. Couldn't have said it better myself.
I am always amazed to see how far behind the US is in that department.
I know that many do not like to use some of those stores anyway. I myself try to avoid Walmart. However, for everyone else, you should make a point of saying something to the managers of the stores. As one poster suggested a few weeks ago, have them ring up your big screen tv only to be shocked when they say they don't support ApplePay. Tell the manager why you are leaving without the TV. The old cliché is true, if enough people do it....
Not entirely true. Soon the liability for fraud is set switch to the retailers if they haven't upgrade to chip/pin technology