Apple Pay transactions totaled $10.9B in 2015, suffers growing pains, report says

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  • Reply 41 of 47
    brucemcbrucemc Posts: 1,541member
    chia said:
    emoeller said:
    Thanks for this link, it explains why I now have to sign transactions, which is really a pain and holds up the line.  I would hope that Apple is working to correct this.  In speaking with POS folks they really have no clue about these new terminals and how they work.  For them it is a large capital expense that was/is being forced on them by the card issuers under threat of transferring fraud liability to the retailer if they don't install them.  While there may be 'smarter' terminals that can distinguish biometrics I'll bet they are more expensive and probably require more installation and setup time.
    Actually, the author of the article demonstrates an astounding lack of knowledge and ignorance of the subject: there is provision for on device verification, e.g. Touch ID, within the EMV contactless specification. After looking at the official EMV website, I suspect the problem is not so much the EMV system itself but merchants or even card processors misconfiguring the card terminals.

    http://www.emvco.com/faq.aspx?id=287#12
    What Cardholder Verification Methods (CVM) can be supported for mPOS?
    All CVMs as currently defined in EMVCo specifications can be supported, including:
    - Online PIN
    - Plaintext and enciphered offline PIN
    - Consumer Device CVM (contactless only)
    - Signature
    - Combinations of above
    - No CVM

    What is Consumer Device CVM (CDCVM)?
    CDCVM is a CVM (e.g. passcode, biometric) that is captured and verified on the cardholder’s consumer grade mobile device. The results of the CDCVM verification are presented to the mPOS solution an outcome “Confirmation Code Verified” (as described in Book A here, Section 5.5.8)
    Certainly where I am there is no signature requirement for contactless (regardless of Apple Pay or just NFC embedded in cards).  And EMV terminals have been deployed here for years.  I am thinking the USA is having some EMV teething pains.
  • Reply 42 of 47
    dick applebaumdick applebaum Posts: 12,527member

    Now that the Colonel accepts ApplePay, it's Katie bar the door!



  • Reply 43 of 47
    NemWanNemWan Posts: 118member
    I just shake my head at large merchants who accept credit cards but consciously refuse Apple Pay in the vain hope they can make some alternative they make more money on catch on. They know the shift to smartphone-based payment is coming, and they see it as their chance to escape from the credit card companies. It isn't. The credit card companies still hold all the cards, so to speak. Apple worked with them instead of against them and they're going to win.

    Walmart looks like a merchant in the 1980s who refuses to get a magnetic stripe reader because they don't want to encourage credit cards by making them too convenient. As if they like that the time it takes to take a card impression with the zip-zap/knucklebuster machine and manually write the amount and call in an authorization encourages people to use cash.
  • Reply 44 of 47
    dick applebaumdick applebaum Posts: 12,527member
    NemWan said:
    I just shake my head at large merchants who accept credit cards but consciously refuse Apple Pay in the vain hope they can make some alternative they make more money on catch on. They know the shift to smartphone-based payment is coming, and they see it as their chance to escape from the credit card companies. It isn't. The credit card companies still hold all the cards, so to speak. Apple worked with them instead of against them and they're going to win.

    Walmart looks like a merchant in the 1980s who refuses to get a magnetic stripe reader because they don't want to encourage credit cards by making them too convenient. As if they like that the time it takes to take a card impression with the zip-zap/knucklebuster machine and manually write the amount and call in an authorization encourages people to use cash.

    Supposedly, large merchants like Walmart and Target want:
    1. lower cc processing fees
    2. user data

    I suspect that both of these are doable with ApplePay -- by using a little creativity.

    It's all how you make the deals:

    I assume that 1) lower processing fees could be negotiated because of things like:
    • faster processing
    • lower number/cost of bad transactions
    • higher volume

    For 2), let's make a deal:

    As a consumer, I would consider allowing them to capture/mine my user data -- if they'd allow me to digitally capture their transaction data about me ...  I'm talking detail transaction receipts in a standard digital format.

    I can think of several ways this can be implemented without negatively affecting the process or any of the parties involved.

    edited June 2016 jackansi
  • Reply 45 of 47
    scythe42scythe42 Posts: 28member
    Likely struggling also because it's also facing some new, formidable
    headwind. See:

    ComputerWorld - EMV rules ruining Apple Pay :

    http://www.computerworld.com/article/3074888/retail-it/emv-rules-ruining-apple-pay.html

    Interestingly, I think most - if not all - credit cards have an area for the
    cardholder's signature on back, and states, "Not Valid Unless Signed",
    yet I have never seen any cashier check for any signature on the
    back of any cards that we have ever had or used. There seems to
    exist a double standard for authentication, depending on method used.
    That Computerworld article is mostly crap. Merchants where you have to sign are not using contactless EMV. They are using magnetic stripe emulation for contactless. Therefore you have to sign the same way as when swiping. CDCVM does not require any signature. It's not even an Apple Pay specific thing, same if you are using a contactless MasterCard for example. 

    It is either misconfigured terminals or the chain waits for contactless EMV certification before activating it and until then use magnetic stripe emulation. Some might not even care at all until customers get annoying by waiting and complaining the store is not supporting contactless payments like other chains. Customers will quickly get used to it.

    This problem will go away, especially as contact less credit cards will become more common in the US as well. Merchants in the US never had to worry about losing money on fraudulent transactions and therefore never moved away from swiping like most other countries or even checking signatures or IDs. But that changed now as we all know... 
  • Reply 46 of 47
    scythe42scythe42 Posts: 28member
    red oak said:
    $10.5 billion would net Apple approx $15 million in revenue, assuming the reported .015% commission for all transactions.  Likely, the net is much smaller.  Then, subtract all the expenses including marketing and employees costs

    Not good if true,given Apple has been at this for a couple of years  


    It's a value added service to the Apple ecosystem. It is not meant to generate large income for Apple in the foreseeable future. Beside that not the amount is important, but the number of transactions to judge any kind of success/adoption rate and the derived value to the ecosystem as a whole from that.

    Anyway, mobile wallets will play an important role in the future of contactless payment especially for all kind of micro transactions. But the dominant form will be contact less credit and debit cards that should be issued in the US soon as well. The US need to catch up to other parts of the world here...

    Apple had the hardware (secure enclave, fingerprint sensor, etc.) and it was natural with the changing US laws and contactless EMV coming to add that service to the ecosystem. In the long run it will be an important feature on a smart phone to support a secure wallet.
  • Reply 47 of 47
    dick applebaumdick applebaum Posts: 12,527member

    Posted on another forum:



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