i'd be careful about reading too much into the whole "deal with Visa" bit. It might not be a one stop wallet gig at all but rather just working out the deers needed to have a passbook card version of your credit cards. Once the card is available and merchants and Visa have the terms worked out then places might start talking such a card in place of a physical one. Add to this things like Starbucks, Apple etc where you can already pay with a 'local' card and there is your wallet
This is great news, I also hope Apple does finally add NFC support. I'm not sure how it is in the US but in Switzerland almost 90% of all vending machines now except Google Wallet. The rail system, kiosks, Migros, Coop, Lidl, etc. also support payment through phones. Though Apple is a little late to the game here I have no doubt that they'll catch up quickly.
I just received two free high end cameras and I still have enough credit card points for a free trip overseas. Apple will have to try hard to get my business.
I have a Nexus 5, the official Google phone, and Google wallet isn't even available for me to download, and never has been. Should tell you something about what a clusterfuck of a product it is.
Pretty clueless discussion. Visa and MasterCard are pushing chip and pin technology already in use in Europe. If Apple is going to do anything they will imbed the "chip" into their devices and work with Visa to tie it into their systems. The credit card companies have been resisting chip and pin for a decade now due to the cost of replacing all the POS systems and credit cards. It's foolish to think Apple is going to change that particular landscape with the iPhone. It would be tantamount to Apple rolling out the iPhone and announcing it works on a new radio frequency that will have to be physically added onto all the towers of any carrier who sells the iPhone. Doesn't matter how great the iPhone was, that would have killed it.
Visa and MasterCard are pushing chip and pin technology already in use in Europe. If Apple is going to do anything they will imbed the "chip" into their devices and work with Visa to tie it into their systems.
Not a hardware chip though, it would be something in software. Apple already has an identification tech with touch id. If it's two-factor, that helps guarantee that the user is the account owner. Banks use calculator-like devices to logon to online banking. They can replace that with an app. Each app would get some sort of key from the bank when installed and to pay for something, they can use the key plus the fingerprint plus a code to type in to verify a transaction. If someone stole the phone, they'd need the fingerprint plus the code to do anything with it. As soon as it's stolen, the bank is contacted and deauthorizes the key given to the app based on the user details so even if they manage to figure out the code and make a fake finger, the key is invalid.
Making a purchase would involve going near to a checkout, the user would launch the app, the shopkeeper would ring up the amount and it would show on the device, the buyer would then use the thumb and code to agree and they'd get a digital receipt held not only on the phone but it can be synced to the cloud. For regular shoppers, digital receipts can be accumulated by stores to give future discounts and that can act as an incentive to pay digitally.
Apple can even show users a breakdown of their spending per month, which helps them manage their money better. Some shoppers get carried away with purchases when they don't see a summary of what they're spending between stores. It's only when the credit card bill hits that they realise how much they've spent.
It doesn't need to be universal, it just needs to be accepted by the largest retailers, which is where most of our money is spent. Would a large supermarket chain do something just for Apple users? Yes, because many of them developed iOS only applications. Similar with gas stations. You're talking companies who would invest millions to save 15-30 seconds off each transaction.
I think iWatch will be the biggie here - the end game is to make the retail transaction as 'display total, swipe finger to authorise'. The parts are starting to line up (iBeacon, the APIs in iOS 8).
For small corner stores - you could probably do something with an App for the merchant. Just think how many small merchants who didn't have POS terminals took up Square or Paypal apps to accept payment.
The hard part, technologically, would be identifying the customers device to invoice it, without introducing an additional tedious step. (Unless both devices have NFC, which they won't).
But the return on investment on both sides is pretty low - your local shop won't be able to turn over much extra business for the sake of those extra 15 seconds.
Apple should buy Visa and make it obligatory to own an Apple device if you wish to use Visa in any capacity. They should then buy the other card companies, one by one, and monopolise mobile payments to become the world bank. Eventually, if you don't own an Apple device, you will only be able to make payments using cash.
Apple should buy Visa and make it obligatory to own an Apple device if you wish to use Visa in any capacity. They should then buy the other card companies, one by one, and monopolise mobile payments to become the world bank. Eventually, if you don't own an Apple device, you will only be able to make payments using cash.
Apple is just getting started.
Now that is a totally insane idea that will never happen.
Apple should buy Visa and make it obligatory to own an Apple device if you wish to use Visa in any capacity. They should then buy the other card companies, one by one, and monopolise mobile payments to become the world bank. Eventually, if you don't own an Apple device, you will only be able to make payments using cash.
Apple is just getting started.
I'm guessing you don't really know how these "payment transaction processing systems" actually work...
Monopolizing those would have happened a long time ago, if was remotely possible, which it probably isn't. Visa, Mastercard, American Express (and others who ride the backend systems like Cirrus, etc.).... they're about as close as we've ever come to "monopolies' within those systems...
As long as banking regulations remain within the confines of "national control" (meaning they are different for every country that has international banking regulations) there will never be a scenario like the one you imagined.
Could make for an interesting movie plot I guess, but ... reality? Nah...
There is no advantage to using my phone over using a card. IMO this is one of the few use cases for an iWatch. Tapping my wrist to pay is far easier than using a card.
Comments
This is great news, I also hope Apple does finally add NFC support. I'm not sure how it is in the US but in Switzerland almost 90% of all vending machines now except Google Wallet. The rail system, kiosks, Migros, Coop, Lidl, etc. also support payment through phones. Though Apple is a little late to the game here I have no doubt that they'll catch up quickly.
No one cares.
I have a Nexus 5, the official Google phone, and Google wallet isn't even available for me to download, and never has been. Should tell you something about what a clusterfuck of a product it is.
Are you in the US? Because the whole point of Host Card Emulation introduced in Kitkat (for which the Nexus 5 is the marquee device) is to run around the restrictions imposed by carriers that are trying to push their own ISIS payment solution (http://www.nfcworld.com/2013/10/31/326619/google-gets-around-carriers-host-card-emulation-nfc-payments/).
What's more, everyone used to the same ring tone.
I hadn't thought of that, Macky. Funny observation!
Best.
Not a hardware chip though, it would be something in software. Apple already has an identification tech with touch id. If it's two-factor, that helps guarantee that the user is the account owner. Banks use calculator-like devices to logon to online banking. They can replace that with an app. Each app would get some sort of key from the bank when installed and to pay for something, they can use the key plus the fingerprint plus a code to type in to verify a transaction. If someone stole the phone, they'd need the fingerprint plus the code to do anything with it. As soon as it's stolen, the bank is contacted and deauthorizes the key given to the app based on the user details so even if they manage to figure out the code and make a fake finger, the key is invalid.
Making a purchase would involve going near to a checkout, the user would launch the app, the shopkeeper would ring up the amount and it would show on the device, the buyer would then use the thumb and code to agree and they'd get a digital receipt held not only on the phone but it can be synced to the cloud. For regular shoppers, digital receipts can be accumulated by stores to give future discounts and that can act as an incentive to pay digitally.
Apple can even show users a breakdown of their spending per month, which helps them manage their money better. Some shoppers get carried away with purchases when they don't see a summary of what they're spending between stores. It's only when the credit card bill hits that they realise how much they've spent.
I'm just waiting for my credit tube. I hear it's only 20 minutes away! (If anyone gets this reference, you are an uber geek)
It doesn't need to be universal, it just needs to be accepted by the largest retailers, which is where most of our money is spent. Would a large supermarket chain do something just for Apple users? Yes, because many of them developed iOS only applications. Similar with gas stations. You're talking companies who would invest millions to save 15-30 seconds off each transaction.
I think iWatch will be the biggie here - the end game is to make the retail transaction as 'display total, swipe finger to authorise'. The parts are starting to line up (iBeacon, the APIs in iOS 8).
For small corner stores - you could probably do something with an App for the merchant. Just think how many small merchants who didn't have POS terminals took up Square or Paypal apps to accept payment.
The hard part, technologically, would be identifying the customers device to invoice it, without introducing an additional tedious step. (Unless both devices have NFC, which they won't).
But the return on investment on both sides is pretty low - your local shop won't be able to turn over much extra business for the sake of those extra 15 seconds.
Sometimes, it seems that everyone has the 'old phone' ringtone here in London, probably because it's one of the easiest to hear in noisy environments.
Apple is just getting started.
Apple should buy Visa and make it obligatory to own an Apple device if you wish to use Visa in any capacity. They should then buy the other card companies, one by one, and monopolise mobile payments to become the world bank. Eventually, if you don't own an Apple device, you will only be able to make payments using cash.
Apple is just getting started.
I'm guessing you don't really know how these "payment transaction processing systems" actually work...
Monopolizing those would have happened a long time ago, if was remotely possible, which it probably isn't. Visa, Mastercard, American Express (and others who ride the backend systems like Cirrus, etc.).... they're about as close as we've ever come to "monopolies' within those systems...
As long as banking regulations remain within the confines of "national control" (meaning they are different for every country that has international banking regulations) there will never be a scenario like the one you imagined.
Could make for an interesting movie plot I guess, but ... reality? Nah...