I wonder whether Apple will incorporate the ability to take payments (as well as make payments) into iPads and iPhones. That could be a game changer. Some of the newer cafes and shops in cities I've visited in the US already use iPads (along with hardware like that from Square) to take payments. Surely it's technically quite easy to make all new iPads able to accept Apple Pay?
Virtually everything in this article appeared on Bloomberg within 48 hrs of launch. Most biz analysts agree with digitalclips, e.g., if they snooze they lose!
Subjectively - the two grocery stores we shop every weekend are setup and ready to go. We shop WalMart erratically for a paper goods run, few fill-ins. They haven't even brought inventory control into the 21st Century. Won't be back into a Best Buy till I want to decide which 4K TV to buy from Amazon.
With all the recent merchant hacks (Dairy Queen being the most recent), these companies have to adopt a more secure payment method. If they are not going to manage and secure their backend systems then let the customers bring the solution to the table for them. ApplePay as I understand it would prevent credit card numbers, names and addresses from being shared. I am tired of hearing about data breaches.. these cost the merchants far more in damages than upgrading a terminal!
The list should make a good starting point for companies not to invest in. Someone should email all the CEOs and explain that they were destroyed when Apple decided to disrupt their money cartel. How do you get to be a CEO today, and not understand that Apple looks to fat, lazy monopolies, and relieves them of their cash cow.
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.
Are all chip&sign card terminals also NFC terminals? My understanding is they aren't.
You know, instead of being behind other 1st world countries like we always are in technology and common sense, you would think the American Government would step their game up and do something right for once.
It wouldn't be too terribly difficult for congress to step in and say, "companies have six months to replace their current card readers for NFC enabled ones that allow for Apple Pay and Google Wallet services." Any company that gets reported for not having these terminals should face a $500,000 a day fine for not complying with this regulation. Perhaps the loaded companies that act like they're on a lower-class citizen level budget will open up their ears and wallets then.
God-forbid America should do something right in the wireless world for a change. We already have some of the worst data bandwidth in the world for a country of our income status, we still have CDMA carriers while the rest of the world has GSM, we have stupid laws that allow carriers the choice to keep OUR cell phones locked up after the contract is up for that phone, and we still get ripped off with ridiculous restocking fees, early upgrade fees, activation fees, and other stupid taxes from the government on our phone bill.
Sometimes I wish I were solely in charge of phone and wireless regulations in this country.
I have been waiting for a replacement for credit cards for literally over a decade. Merchants and security/lock companies can avoid this shift at their own peril. Apple is a force of nature at this point and so are Apple's customers. Call me a fanboi if you will. Apple customers spend the most money likely because we HAVE the most money to spend...
If retailers dont accept Apple pay, i will take it personally. If walmart wanted to make a better smartphone and get in on this game, they should have. If they wanted to start a credit card company, they should have. Instead, If i go to sam's club i can pay with a mastercard but not a visa. Chase dropped mastercard in favor of visa and i now shop less at sam's because i need to go find cash or get another credit card (which i refuse to do).
Walmart's 24 registers with only 3 ever open also shows how yhey treat customers in favor of their profitability. Make me checkout my own groceries... And offer no discount for doing so... That's a big F-U to any customer with a brain.
Interesting Best But is aligning with their Merchant Payment initiative. Just a few weeks ago AI posted an article on how Apple kiosks and iPhone drive the majority of foot traffic into Best Buy. Careful Best Buy to not cut off the hand that feeds you.
Walmart sells a lot of iPhones with plans. A huge number of Apple device owners shop there.
It would cost a tremendous amount of money to change the hardware at every register in every store in the list above. There is just very very little incentive to do it.
iPhone purchases at Walmart tell us little. Those are likely to be an extremely small proportion of the company's overall customer base and sales. The problem for them is that the typical Walmart customer that walks into the store is unlikely to be an iPhone 6 or AppleWatch user. ('Apple device owners' is not the same thing).
CC are very archaic in the States and retailers are very cost conscious. Apple have succeeded in getting the banks on board which is step one. Bringing in the retailers will be the next challenge. There are 20M iP6s sold to date and maybe only 10M in the US so the # of capable phones will be low. Think of this as a long term play. It may be a few years before we see a large number of vendors supporting this. I was in the UK last month and although chip and pin has been around for a while this was the first time I had issues with my US CC. Retailers are so used to the new system that they have a hard time remembering how to swipe the old style card.
I see an opportunity for a new app... One that specifically lists which merchants do and do not support Apple Pay. Integrated with Siri to only list (find) establishments that accept Apple Pay. The others will fall in line pretty quick...
Or maybe bc people don't care that much...? Is offering Apple Pay going to bring in additional revenue? Does sliding your card deter you from making purchases?
Now that there is a secure option that doesn't result in my card being compromised twice this year? You bet your wise ass it does.
I will go out of my way to avoid retailers that don't quickly adopt Apple Pay.
I think some are just hesitant to see how well this really works out. Its not like they have to sign on today or else they're screwed forever. They can sign on at any time. Also, for some its quite and undertaking and expensive. Many may not have planned on spending money on new POS systems at this point. Maybe down the road when they do budgets again they can figure that into their budget.
I expected this to happen. It will be a few years before everyone is on board. As the ones that did sign on succeed, it will get other major retailers on board. Some are just hesitant to just sign up for something.
Not to worry about Sears and Kmart. Those derelict Sears Holding businesses will be bankrupt by the new year and finally sink from view forever in not much more than a year or two afterwards.
As for Best Buy, remember Circuit City? How about Tweeter, Federated, Highlands, The Wiz, Crazy Eddie, CompUSA, Silo, Highland, Fretter and many, many more. Get ready to throw BB and Radio Shack on the heap.
Guys that can barely pay the light bill will drag their feet on spending for NFC that incorporates Apple Pay. In the coming months that'll be a sure signal to customers that they're shopping at a Dead Man Walking.
Macy's may be responsible when you use your Macy's card, but when using a major credit card, the card is, I believe, responsible, unless or until the card company demonstrates a pattern of negligence by the merchant
I don't think so -- if the merchant doesn't have you verify some things then it's on them. That's why they're supposed to ask for id, or zip code, etc.
I have to wonder if the refusal by these outlets to use ApplePay (in addition to technology) has more to do with giving control of the customer over to Apple's system.
Best Buy Rewards, gift cards, etc... are all designed to collect customer data. Using ApplePay for everything might make these retailers uncomfortable.
When I go to Best Buy, I only use cash because of their intrusiveness. One time I tried to pay with cash and they wanted my address and telephone number. I told them I was not going to give it to them for a cash purchase and they backed down after I yelled at the store manager.
Comments
Virtually everything in this article appeared on Bloomberg within 48 hrs of launch. Most biz analysts agree with digitalclips, e.g., if they snooze they lose!
Subjectively - the two grocery stores we shop every weekend are setup and ready to go. We shop WalMart erratically for a paper goods run, few fill-ins. They haven't even brought inventory control into the 21st Century. Won't be back into a Best Buy till I want to decide which 4K TV to buy from Amazon.
I would like to know when it will come to the UK as we already have a lot of places that accept nfc.
According to Visa they will begin to support it sometime during 2015 but no firm date has been given.
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.
Are all chip&sign card terminals also NFC terminals? My understanding is they aren't.
You know, instead of being behind other 1st world countries like we always are in technology and common sense, you would think the American Government would step their game up and do something right for once.
It wouldn't be too terribly difficult for congress to step in and say, "companies have six months to replace their current card readers for NFC enabled ones that allow for Apple Pay and Google Wallet services." Any company that gets reported for not having these terminals should face a $500,000 a day fine for not complying with this regulation. Perhaps the loaded companies that act like they're on a lower-class citizen level budget will open up their ears and wallets then.
God-forbid America should do something right in the wireless world for a change. We already have some of the worst data bandwidth in the world for a country of our income status, we still have CDMA carriers while the rest of the world has GSM, we have stupid laws that allow carriers the choice to keep OUR cell phones locked up after the contract is up for that phone, and we still get ripped off with ridiculous restocking fees, early upgrade fees, activation fees, and other stupid taxes from the government on our phone bill.
Sometimes I wish I were solely in charge of phone and wireless regulations in this country.
If retailers dont accept Apple pay, i will take it personally. If walmart wanted to make a better smartphone and get in on this game, they should have. If they wanted to start a credit card company, they should have. Instead, If i go to sam's club i can pay with a mastercard but not a visa. Chase dropped mastercard in favor of visa and i now shop less at sam's because i need to go find cash or get another credit card (which i refuse to do).
Walmart's 24 registers with only 3 ever open also shows how yhey treat customers in favor of their profitability. Make me checkout my own groceries... And offer no discount for doing so... That's a big F-U to any customer with a brain.
iPhone purchases at Walmart tell us little. Those are likely to be an extremely small proportion of the company's overall customer base and sales. The problem for them is that the typical Walmart customer that walks into the store is unlikely to be an iPhone 6 or AppleWatch user. ('Apple device owners' is not the same thing).
Think of this as a long term play. It may be a few years before we see a large number of vendors supporting this.
I was in the UK last month and although chip and pin has been around for a while this was the first time I had issues with my US CC. Retailers are so used to the new system that they have a hard time remembering how to swipe the old style card.
The others will fall in line pretty quick...
Now that there is a secure option that doesn't result in my card being compromised twice this year? You bet your wise ass it does.
I will go out of my way to avoid retailers that don't quickly adopt Apple Pay.
I think some are just hesitant to see how well this really works out. Its not like they have to sign on today or else they're screwed forever. They can sign on at any time. Also, for some its quite and undertaking and expensive. Many may not have planned on spending money on new POS systems at this point. Maybe down the road when they do budgets again they can figure that into their budget.
I expected this to happen. It will be a few years before everyone is on board. As the ones that did sign on succeed, it will get other major retailers on board. Some are just hesitant to just sign up for something.
Perhaps, say, after a year or so I might do that only because I've stopped carrying around a wallet with a bunch of cards on me.
As for Best Buy, remember Circuit City? How about Tweeter, Federated, Highlands, The Wiz, Crazy Eddie, CompUSA, Silo, Highland, Fretter and many, many more. Get ready to throw BB and Radio Shack on the heap.
Guys that can barely pay the light bill will drag their feet on spending for NFC that incorporates Apple Pay. In the coming months that'll be a sure signal to customers that they're shopping at a Dead Man Walking.
I don't think so -- if the merchant doesn't have you verify some things then it's on them. That's why they're supposed to ask for id, or zip code, etc.
When I go to Best Buy, I only use cash because of their intrusiveness. One time I tried to pay with cash and they wanted my address and telephone number. I told them I was not going to give it to them for a cash purchase and they backed down after I yelled at the store manager.
I seldom go there now.