Apple Pay likely to get boost from Visa & Mastercard mandating contactless payment termina...

Posted:
in iPhone
Apple Pay should get a major lift within the next five years from a pair of factors, according to new research, most notably contactless support demanded by credit card giants Visa and Mastercard.




By 2020, both companies will require payment terminals in many markets to offer the technology, Juniper Research noted. The lack of compatible sales terminals has been a consistent obstacle in U.S. Apple Pay adoption, such that some retailers -- like Anthropologie -- have promised support for years without delivering.

Growth may also be aided by shoppers wanting to avoid the slower speeds of chip card transactions, which are presently replacing magnetic swipes.

U.S. contactless payments at retail are forecast to rise from 2 percent this year to 34 percent by 2022, Juniper said. Globally, figures are predicted to rise from 15 percent to 53 percent, reflecting the technology's greater popularity in countries like Poland, Japan, and the U.K.

Apple is planning relatively modest expansion of Apple Pay this fall. The platform will arrive in four more countries by the end of the year, and iOS 11 will enable person-to-person money transfers, potentially biting into the revenue of companies like Square and PayPal.
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Comments

  • Reply 1 of 46
    mknelsonmknelson Posts: 326member
    Slower speeds of chip card transactions? Do you guys process them "weird" in the US?

    Insert card, hit OK, enter PIN, done. Doesn't really take any more time than signing.
    chia[Deleted User]
  • Reply 2 of 46
    Apple should make these terminals. Design them simply and beautifully, give them away at cost, and charge retailers a little extra on every transaction to make a profit. They will blow away the PoS terminal market, and encourage wide adoption of ApplePay. The spillover effects for other Apple hardware (Watch, iPhone) would be positive as well.

    ApplePay is sheer genius, but pathetically marketed and rolled out (I mean that with respect to PoS, and online).

    As an aside, does anyone else have glitches with the implementation of ApplePay online where it asks for a confirmation via the Watch? I usually give up after a half dozen tries, when it keeps saying "woking on it" (or something to that effect) for a while.
    lostkiwiwatto_cobraSpamSandwich
  • Reply 3 of 46
    joogabahjoogabah Posts: 117member
    mknelson said:
    Slower speeds of chip card transactions? Do you guys process them "weird" in the US?

    Insert card, hit OK, enter PIN, done. Doesn't really take any more time than signing.
    In the USA, you don't enter a PIN (I know, it's stupid).  You insert the card and wait 15 to 20 seconds (which feel like an eternity standing in line with people waiting behind you) until the terminal sounds a loud, sometimes startling series of beeps to indicate you should remove your card.  
    edited August 2017 lostkiwiavon b7
  • Reply 4 of 46
    sirlance99sirlance99 Posts: 1,142member
    Apple should make these terminals. Design them simply and beautifully, give them away at cost, and charge retailers a little extra on every transaction to make a profit. They will blow away the PoS terminal market, and encourage wide adoption of ApplePay. The spillover effects for other Apple hardware (Watch, iPhone) would be positive as well.

    ApplePay is sheer genius, but pathetically marketed and rolled out (I mean that with respect to PoS, and online).

    As an aside, does anyone else have glitches with the implementation of ApplePay online where it asks for a confirmation via the Watch? I usually give up after a half dozen tries, when it keeps saying "woking on it" (or something to that effect) for a while.
    Never going to happen for so many reasons. 
  • Reply 5 of 46
    maestro64maestro64 Posts: 4,529member
    joogabah said:
    mknelson said:
    Slower speeds of chip card transactions? Do you guys process them "weird" in the US?

    Insert card, hit OK, enter PIN, done. Doesn't really take any more time than signing.
    In the USA, you don't enter a PIN (I know, it's stupid).  You insert the card and wait 15 to 20 seconds (which feel like an eternity standing in line with people waiting behind you) until the terminal sounds a loud, sometimes startling series of beeps to indicate you should remove your card.  


    I hate the whole chip and pin idea, who's stupid idea was that. I remember when Apple Pay came out all the people from EU said it was not needed since the problem (theft) was solved with chip and pin. Every chance I get I use Apple pay it is a 2 second thing and those who have it set up correctly it does not even required a signature. I travel outside the US where Chip and Pin is required with the CC and it is a pain and take longer and a few times I almost left the card in a Gas Pump. Most stores and restaurants will make sure you do not leave the card behind since it happens all the time. One time I could not remember the PIN on the company card and you enter it wrong a few times and they lock the card on you, what royal pain.

    Apple pay is the perfect example of how to fix a problem the right way verse all the other bad solutions other has come up with. Apple was the only one who could have fixed this since they control the hardware and software. The Banks trusted what they were doing.

    I am still seeing lots of locations which the new POS terminals but they do not accept the chip and pin or apple pay, they have it disable, This is good think for Samsung pay which they can still emulate the mag-strip.

    mike1watto_cobrawilliamlondon
  • Reply 6 of 46
    igorskyigorsky Posts: 422member
    mknelson said:
    Slower speeds of chip card transactions? Do you guys process them "weird" in the US?

    Insert card, hit OK, enter PIN, done. Doesn't really take any more time than signing.
    It's not so much that we process them "weird" as it is that we process them "half-assed". All the speed and security benefits of PINs are negated by the usage of signatures.
    edited August 2017 chiawatto_cobra
  • Reply 7 of 46
    mike1mike1 Posts: 1,871member
    mknelson said:
    Slower speeds of chip card transactions? Do you guys process them "weird" in the US?

    Insert card, hit OK, enter PIN, done. Doesn't really take any more time than signing.
    The process is more like...

    Take wallet out of pocket/purse.
    Remove card from wallet and insert in POS device.
    Stand there for 10 seconds with open wallet in hand.
    Enter PIN if required. (Stores have minimums that require a PIN, so it's not always ncessary)
    Stand there are another 5-10 seconds with wallet in hand and wait for annoying sound telling you you can remove the card.
    Insert card in wallet and replace in pocket/purse.

    You used to be able to swipe your card and put it away while waiting for the machine to get it's approval. Using this time to bag groceries or put them in the cart etc. This is why I use Apple Pay whenever possible.
    StrangeDayswatto_cobra
  • Reply 8 of 46
    saareksaarek Posts: 1,123member
    mike1 said:
    mknelson said:
    Slower speeds of chip card transactions? Do you guys process them "weird" in the US?

    Insert card, hit OK, enter PIN, done. Doesn't really take any more time than signing.
    The process is more like...

    Take wallet out of pocket/purse.
    Remove card from wallet and insert in POS device.
    Stand there for 10 seconds with open wallet in hand.
    Enter PIN if required. (Stores have minimums that require a PIN, so it's not always ncessary)
    Stand there are another 5-10 seconds with wallet in hand and wait for annoying sound telling you you can remove the card.
    Insert card in wallet and replace in pocket/purse.

    You used to be able to swipe your card and put it away while waiting for the machine to get it's approval. Using this time to bag groceries or put them in the cart etc. This is why I use Apple Pay whenever possible.
    The internet speed for these terminals in the US must be crap.

    Typical shop at a UK Supermarket, assistant scans your items and asks you to pay, terminal is pretty much ready for your card as soon as last item scanned, put card in card reader, wait around a second, type in pin, wait another 2-3 seconds and put card away.

    Don't get how it takes 20-30 seconds in the USA, at most it is a 10 second job here and that includes taking your card out and putting it away.
    edited August 2017 lostkiwichia[Deleted User]williamlondon
  • Reply 9 of 46
    The internet speed for these terminals in the US must be crap.
    No, the US and Europe systems are different, and use different technology. US = Chip and Signature, EU = Chip and PIN. http://www.mytotalretail.com/post/u-s-vs-europe-taking-retail-technology/ It's dumb, but there it is. Contactless will take over in the long run. Love my Apple Watch for that.
    watto_cobraSpamSandwichwaverboy
  • Reply 10 of 46
    pvanallen said:
    The internet speed for these terminals in the US must be crap.
    No, the US and Europe systems are different, and use different technology. US = Chip and Signature, EU = Chip and PIN. http://www.mytotalretail.com/post/u-s-vs-europe-taking-retail-technology/ It's dumb, but there it is. Contactless will take over in the long run. Love my Apple Watch for that.
    Most us retailers rely on satellite links which in most cases give you 256k max. While most independent retailers using square or alternatives use 3g or 4g cellular data. I think if adoption of internet protocols in the business world match those in our homes there would be a seamless Apple Pay experience 
    lostkiwiwatto_cobraSpamSandwich
  • Reply 11 of 46
    mknelson said:
    Slower speeds of chip card transactions? Do you guys process them "weird" in the US?

    Insert card, hit OK, enter PIN, done. Doesn't really take any more time than signing.
    Your description does not replicate the actual experience. The first time I used the chip, I could not believe it. Instead of the fast swipe of the card, the long time, relatively speaking, of reading the chip and waiting until the reader says that the card can be removed was and is still ridiculous. Mind you, I am not entering a PIN and still I asked "Is this progress?." No, it is not and the contactless method will be a big improvement. 
    watto_cobrawilliamlondon
  • Reply 12 of 46
    mknelson said:
    Slower speeds of chip card transactions? Do you guys process them "weird" in the US?

    Insert card, hit OK, enter PIN, done. Doesn't really take any more time than signing.
    And someone sees your PIN and then uses an RFID reader and slurps the card details. What then eh? They go on a spending spree on your card. None of my cards have RFID chips but I can still use Apple Pay.

    watto_cobrawilliamlondon
  • Reply 13 of 46
    gatorguygatorguy Posts: 20,452member
    mknelson said:
    Slower speeds of chip card transactions? Do you guys process them "weird" in the US?

    Insert card, hit OK, enter PIN, done. Doesn't really take any more time than signing.
    And someone sees your PIN and then uses an RFID reader and slurps the card details. What then eh? They go on a spending spree on your card. None of my cards have RFID chips but I can still use Apple Pay.

    It's not you that's out the money so whatever. Just went thru something similar with AMEX except that the credentials were stolen via an online transaction. Chinese thief using it. Nearly 8K in charges that Amex reversed within hours of the first charge and not a penny out of my pocket. 
  • Reply 14 of 46
    boltsfan17boltsfan17 Posts: 2,160member
    saarek said:
    mike1 said:
    mknelson said:
    Slower speeds of chip card transactions? Do you guys process them "weird" in the US?

    Insert card, hit OK, enter PIN, done. Doesn't really take any more time than signing.
    The process is more like...

    Take wallet out of pocket/purse.
    Remove card from wallet and insert in POS device.
    Stand there for 10 seconds with open wallet in hand.
    Enter PIN if required. (Stores have minimums that require a PIN, so it's not always ncessary)
    Stand there are another 5-10 seconds with wallet in hand and wait for annoying sound telling you you can remove the card.
    Insert card in wallet and replace in pocket/purse.

    You used to be able to swipe your card and put it away while waiting for the machine to get it's approval. Using this time to bag groceries or put them in the cart etc. This is why I use Apple Pay whenever possible.
    The internet speed for these terminals in the US must be crap.

    Typical shop at a UK Supermarket, assistant scans your items and asks you to pay, terminal is pretty much ready for your card as soon as last item scanned, put card in card reader, wait around a second, type in pin, wait another 2-3 seconds and put card away.

    Don't get how it takes 20-30 seconds in the USA, at most it is a 10 second job here and that includes taking your card out and putting it away.
    Last trip to London, it took longer than 10 seconds using a chip card. I used my card multiple places and not one was as fast as 10 seconds. 
    watto_cobra
  • Reply 15 of 46
    saareksaarek Posts: 1,123member
    saarek said:
    mike1 said:
    mknelson said:
    Slower speeds of chip card transactions? Do you guys process them "weird" in the US?

    Insert card, hit OK, enter PIN, done. Doesn't really take any more time than signing.
    The process is more like...

    Take wallet out of pocket/purse.
    Remove card from wallet and insert in POS device.
    Stand there for 10 seconds with open wallet in hand.
    Enter PIN if required. (Stores have minimums that require a PIN, so it's not always ncessary)
    Stand there are another 5-10 seconds with wallet in hand and wait for annoying sound telling you you can remove the card.
    Insert card in wallet and replace in pocket/purse.

    You used to be able to swipe your card and put it away while waiting for the machine to get it's approval. Using this time to bag groceries or put them in the cart etc. This is why I use Apple Pay whenever possible.
    The internet speed for these terminals in the US must be crap.

    Typical shop at a UK Supermarket, assistant scans your items and asks you to pay, terminal is pretty much ready for your card as soon as last item scanned, put card in card reader, wait around a second, type in pin, wait another 2-3 seconds and put card away.

    Don't get how it takes 20-30 seconds in the USA, at most it is a 10 second job here and that includes taking your card out and putting it away.
    Last trip to London, it took longer than 10 seconds using a chip card. I used my card multiple places and not one was as fast as 10 seconds. 
    Maybe it's because you are using a foreign card. Typically 10 seconds absolute maximum.
  • Reply 16 of 46
    maestro64maestro64 Posts: 4,529member
    saarek said:
    mike1 said:
    mknelson said:
    Slower speeds of chip card transactions? Do you guys process them "weird" in the US?

    Insert card, hit OK, enter PIN, done. Doesn't really take any more time than signing.
    The process is more like...

    Take wallet out of pocket/purse.
    Remove card from wallet and insert in POS device.
    Stand there for 10 seconds with open wallet in hand.
    Enter PIN if required. (Stores have minimums that require a PIN, so it's not always ncessary)
    Stand there are another 5-10 seconds with wallet in hand and wait for annoying sound telling you you can remove the card.
    Insert card in wallet and replace in pocket/purse.

    You used to be able to swipe your card and put it away while waiting for the machine to get it's approval. Using this time to bag groceries or put them in the cart etc. This is why I use Apple Pay whenever possible.
    The internet speed for these terminals in the US must be crap.

    Typical shop at a UK Supermarket, assistant scans your items and asks you to pay, terminal is pretty much ready for your card as soon as last item scanned, put card in card reader, wait around a second, type in pin, wait another 2-3 seconds and put card away.

    Don't get how it takes 20-30 seconds in the USA, at most it is a 10 second job here and that includes taking your card out and putting it away.


    Someone correct me if I am wrong, I believe the CC processing companies still use private networks, not the internet, reason being it does not allow for the man in the middle exploit. This could be part of the issue in why it takes a little longer in the US.

    In Canada where I last used my chip and pin, it was about 10 second total, but this is still longer than the 2 seconds on Apple Pay, and I use my watch so I do not need to pull out my phone. Again, if the POS Terminal is set up correctly, you can put your watch up to the reader while the cashier is still process your order and it accept the Apple Pay token and waits to the transaction is complete and process it. This way I am not waiting for the cashier or holding people up waiting for payment process. I know with chip and pin and Mag-strip swipe you can not put the card through until the cashier processes the order you have to wait until they are done.

    The other benefit of Apple Pay, at least with Chase CC, I get an immediate confirmation on my phone or watch saying the payment went through and for what amount. 

    mike1
  • Reply 17 of 46
    mike1 said:
    mknelson said:
    Slower speeds of chip card transactions? Do you guys process them "weird" in the US?

    Insert card, hit OK, enter PIN, done. Doesn't really take any more time than signing.
    The process is more like...

    Take wallet out of pocket/purse.
    Remove card from wallet and insert in POS device.
    Stand there for 10 seconds with open wallet in hand.
    Enter PIN if required. (Stores have minimums that require a PIN, so it's not always ncessary)
    Stand there are another 5-10 seconds with wallet in hand and wait for annoying sound telling you you can remove the card.
    Insert card in wallet and replace in pocket/purse.
    Exactly.

    Using Apple Pay on my phone is a one-handed operation. That's my favorite part of it.

    Sure... it's not exactly difficult to remove your debit card with one hand and hold your wallet with the other... but it's using 100% more hands!

    And I love efficiency! :)
    watto_cobrawaverboy
  • Reply 18 of 46
    maestro64 said:
    joogabah said:
    mknelson said:
    Slower speeds of chip card transactions? Do you guys process them "weird" in the US?

    Insert card, hit OK, enter PIN, done. Doesn't really take any more time than signing.
    In the USA, you don't enter a PIN (I know, it's stupid).  You insert the card and wait 15 to 20 seconds (which feel like an eternity standing in line with people waiting behind you) until the terminal sounds a loud, sometimes startling series of beeps to indicate you should remove your card.  


    I hate the whole chip and pin idea, who's stupid idea was that. I remember when Apple Pay came out all the people from EU said it was not needed since the problem (theft) was solved with chip and pin. Every chance I get I use Apple pay it is a 2 second thing and those who have it set up correctly it does not even required a signature. I travel outside the US where Chip and Pin is required with the CC and it is a pain and take longer and a few times I almost left the card in a Gas Pump. Most stores and restaurants will make sure you do not leave the card behind since it happens all the time. One time I could not remember the PIN on the company card and you enter it wrong a few times and they lock the card on you, what royal pain.

    Apple pay is the perfect example of how to fix a problem the right way verse all the other bad solutions other has come up with. Apple was the only one who could have fixed this since they control the hardware and software. The Banks trusted what they were doing.

    I am still seeing lots of locations which the new POS terminals but they do not accept the chip and pin or apple pay, they have it disable, This is good think for Samsung pay which they can still emulate the mag-strip.

    How does one "have it set up correctly it does not even require a signature"?  I am asked to sign whenever the amount goes over the merchant's threshold for requiring a signature.  Only smaller transactions are signature-free.
  • Reply 19 of 46
    SpamSandwichSpamSandwich Posts: 31,015member
    If a retailer doesn't have ApplePay, I'll use cash instead. The dinosaurs are dying off.
    watto_cobra
  • Reply 20 of 46
    saarek said:
    mike1 said:
    mknelson said:
    Slower speeds of chip card transactions? Do you guys process them "weird" in the US?

    Insert card, hit OK, enter PIN, done. Doesn't really take any more time than signing.
    The process is more like...

    Take wallet out of pocket/purse.
    Remove card from wallet and insert in POS device.
    Stand there for 10 seconds with open wallet in hand.
    Enter PIN if required. (Stores have minimums that require a PIN, so it's not always ncessary)
    Stand there are another 5-10 seconds with wallet in hand and wait for annoying sound telling you you can remove the card.
    Insert card in wallet and replace in pocket/purse.

    You used to be able to swipe your card and put it away while waiting for the machine to get it's approval. Using this time to bag groceries or put them in the cart etc. This is why I use Apple Pay whenever possible.
    The internet speed for these terminals in the US must be crap.

    Typical shop at a UK Supermarket, assistant scans your items and asks you to pay, terminal is pretty much ready for your card as soon as last item scanned, put card in card reader, wait around a second, type in pin, wait another 2-3 seconds and put card away.

    Don't get how it takes 20-30 seconds in the USA, at most it is a 10 second job here and that includes taking your card out and putting it away.
    Different stores I go to have various speeds of card processing. I'm not sure if it's the type of terminal or just how those terminals are connected to where the cards need to be verified. In most cases for me it's just a few seconds but I've gone to some stores whose terminals are quite slow and it could take about 20 seconds or so. Of course, for me, 20 seconds lost is nothing. What's really lengthy is the people who pay by cash and they're fishing around for change or the cashier has to count their bills and return cash. However, I'm retired so waiting doesn't bother me much at all. At my age, I gave up trying to save time since I know it's soon going to run out relatively soon anyway.
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