Apple Pay adds over 50 more US card issuers as merchant support waits

Posted:
in iPhone
Another 50-plus U.S. card issuers have been added to the list supporting Apple Pay, continuing to outpace the number of merchants actually accepting payments through the service.




As most nationwide chains signed on within the first few months of Apple Pay's launch in October 2014, most new issuers are small local institutions.

Apple Pay is on the verge of expanding to countries like China, but U.S. retail support has lagged considerably. Just a handful of big chains have announced plans to go live in 2016, among them Starbucks and JCPenney.

The full list of new issuers includes:

  • 1st MidAmerica Credit Union
  • Achieve Financial Credit Union
  • Advantage Federal Credit Union
  • Alloy Federal Credit Union
  • Altoona First Savings Bank
  • Altura Credit Union
  • Amalgmated Bank of Chicago [sic]
  • Associated Credit Union of Texas
  • Bank of Ann Arbor
  • Beehive Federal Credit Union
  • Brand Banking Company
  • Business Bank of St. Louis
  • Capitol Credit Union
  • Charlotte State Bank & Trust
  • Citizens Bank (AL)
  • Citizens Savings Bank
  • Community Credit Union
  • Credit Union of Texas
  • Earthmover Credit Union
  • Employment Security Credit Union
  • Family Trust Federal Credit Union
  • First Community Bank of Beemer
  • First Interstate Bank
  • First Service Federal Credit Union
  • Fort Community Credit Union
  • Georgia Bank and Trust
  • HomeStar and Financial Services
  • Houston Highway Credit Union
  • IDB-IIC Federal Credit Union
  • Jefferson Financial Credit Union
  • Katahdin Federal Credit Union
  • Lion's Share Federal Credit Union
  • Mainstreet Community Bank of Florida
  • Marine Bank & Trust
  • Marine Federal Credit Union
  • Monona State Bank
  • Navy Army Community Credit Union
  • Northway Bank
  • Oakworth Capital Bank
  • Plaza Park State Bank
  • Reliant Community Credit Union
  • Security Bank and Trust Company
  • Silver State Schools Credit Union
  • Spencer County Bank
  • Summit Community Bank
  • Sundance State Bank
  • The Commerce Bank of Washington
  • Tioga State Bank
  • Torrance Community Credit Union
  • Total Community Credit Union
  • Triangle Credit Union
  • United Community Bank
  • USNY Bank

Piper Jaffray's Gene Munster earlier this week said he expects 2016 to be a a big year for Apple Pay, with a potential peer-to-peer service rollout, in-browser payment support and more.
«1

Comments

  • Reply 1 of 21
    Alluding that merchants are specifically holding back accepting Apple Pay is simply misdirection. The issue is merchant chose to delay upgrading to new chip ready terminals. ALL chip terminals have the NFC chip in them as part of the encrypting code necessary for chip to work resides in the NFC chip.  I have found in the DFW area that as I see more and more smaller shops finally upgrading to the newer, small, more affordable chip POS terminals that these SAME merchants have NO idea that Apple Pay is even exists.  Most in fact will initially say that they don't accept such.  Yes, I am aware that in some cases, the vendors of the new chip terminals have unfortunately presented NFC activation as an added cost to the merchant, but the overwhelming majority work perfectly.  I was recently in PepBoys and noticed they had new terminals.  I told the cashier that I was going to try Apple Pay since I saw the NFC logo.  He almost immediately told me they did not accept it and before the words had hardly left his mouth the transaction went thru.  He was shocked!  He told me that they had not been able to even get the chip side to work on the new terminals so for NFC payment to go through, let alone Apple Pay, he was astounded.  Then just yesterday, I was in a local mom/pop donut shop and noticed they had gotten new chip terminals.  Again they were totally clueless about NFC or Apple Pay, but astounded to see it work.  

    We have got to stop accepting that merchants are the issue.  Look for the new terminals and give it a try as it only takes a moment to see if NFC is alive. 
    macky the mackynolamacguycornchipjbdragonRayz2016
  • Reply 2 of 21
    calicali Posts: 3,494member
    Apple should create a campaign to raise awareness for merchants.

    Wish they provided terminals themselves with an etched ApplePay logo. An NFC iPad POS campaign would have worked as well.
    I just find it strange some merchants are relying on extra Square hardware to support ApplePay.
    anantksundaramslprescottcornchip
  • Reply 3 of 21
    I agree with many of the previous comments except that some big box retailers choose not to such as CVS. I like Apple Pay so much that I switched entirely to Walgreens. So, retailers need to beware if they choose to go against the consumer. I'm frankly tired of hearing my credit card was compromised. Apple Pay gives me piece of mind. And, it's faster and easier. Last week at Trader Joe's, I got to cut in line cause the two people in front of me wanted to see me use it! 
    jbdragon
  • Reply 4 of 21
    bellsbells Posts: 140member
    dtidmore said:
    Alluding that merchants are specifically holding back accepting Apple Pay is simply misdirection. . .

    We have got to stop accepting that merchants are the issue.  Look for the new terminals and give it a try as it only takes a moment to see if NFC is alive. 
    But many times the merchants are the issue. Take for instance, Tim Horton's. They have the terminals. I walk up and place an order. The credit card pops open on my phone. When I put my finger print on the phone, it simply doesn't work on Tim Horton's end. 

    It works great at Whole Foods, McDonald's, and Meijer's. Other places like Walgreen's makes it more complicated then necessary because you still have to hit a ton of buttons on their reader. 

    There were other stores that said it accepted Apple Pay, like Lucky's Market. Accept the transaction never goes through. 

    Apple needs a team that works with merchants 1) to roll the technology out, and 2) trouble shoot when it doesn't work. 


    anantksundaramjbdragoncornchip
  • Reply 5 of 21
    bellsbells Posts: 140member
    cali said:
    Apple should create a campaign to raise awareness for merchants.

    Wish they provided terminals themselves with an etched ApplePay logo. An NFC iPad POS campaign would have worked as well.
    I just find it strange some merchants are relying on extra Square hardware to support ApplePay.

    Apple should promote merchants in commercials and on its website.
    techno
  • Reply 6 of 21
    Blah blah blah. 

    I really hope we can get some updates on how many POS terminals are ApplePay-compliant, and what proportion of total that is. Adding more credit card companies or banks is essentially meaningless at this point. 

    (Btw, has anyone else noticed that typing 'applepay' is the only Apple product or service that does not automatically capitalize the word in appropriate places in an iOS device? I wonder why that is. iTunes, iPad, iPod, iPhone, CarPlay, iPhoto, iMovie, GarageBand, etc etc do not have this problem!). 
  • Reply 7 of 21
    cali said:

    Wish they provided terminals themselves with an etched ApplePay logo. An NFC iPad POS campaign would have worked as well.
    I just find it strange some merchants are relying on extra Square hardware to support ApplePay.
    Exactly. Apple should have produced a great NFC-based POS product -- hardware is what Apple makes money on, anyway -- and put the existing Luddites (including Square) out of business, selling to retailers directly. 
  • Reply 8 of 21
    The local Chevron gas stations now have NFC readers, but they don't say anything about ApplePay. On a whim, I pulled out my iPhone, tried ApplePay, and it worked! Touch ID is much faster and easier than the credit card and zip code routine. Also, a number of gas stations have been compromised by crooks who put skimmers on the card readers. Now I don't have to worry about that.
    macky the mackynolamacguyjbdragon
  • Reply 9 of 21
    Blah blah blah. 

    I really hope we can get some updates on how many POS terminals are ApplePay-compliant, and what proportion of total that is. Adding more credit card companies or banks is essentially meaningless at this point. 
    The second half of your statement is ignorant beyond measure.

    There are three elements to the equation.
    (1) the POS hardware in the store. Until that is upgraded ApplePay won't work. Do you think elves come in at night and install the new ones? Sansung is making a big deal out of the fact their SamsungPay works with the old hardware (while it's still in use)—with the new hardware they've still got to get the financial institutions on board or they are dead in the water. I think 2016 is the year everyone is to go to new hardware.
    (2) The customer. Unless their bank or credit union has signed on with ApplePay they can't use it even if they are in front of a new terminal with their new iPhone.
    (3) The banks and credit unions who issue credit cards to their customers. Here's where Apple has been putting their efforts. These are the institutions that have to change their software to handle ApplePay. The customers and the POS hardware is helpless until these institutions get on board. These are the real gatekeepers. 

    You will notice that the retail stores are not part of the above list of three elements. You will also notice from the comments that the retail stores that can process ApplePay don't necessarily know it. If they have the new POS hardware, it makes no difference unless the customer banks with an institution who is on-board with ApplePay. Except for a short list of stores that want a cut of the credit card transaction and want to transfer the liability of credit card fraud off to their customers (I'm talking about you, Walmart)... ApplePay will soon work everywhere there's a new POS terminal.

    Meanwhile, once the new POS terminals are in a store, Samsung Pay will be sucking air when the financial institutions cut over to higher security transactions... with the possible exception of the 30 banks that have signed onto Samsung Pay. One thousand (and counting) poised to handle ApplePay, and 30 behind Samsung Pay — which one you want to bet on winning?
    nolamacguy
  • Reply 10 of 21
    wood1208wood1208 Posts: 2,874member
    bells said:
    cali said:
    Apple should create a campaign to raise awareness for merchants.

    Wish they provided terminals themselves with an etched ApplePay logo. An NFC iPad POS campaign would have worked as well.
    I just find it strange some merchants are relying on extra Square hardware to support ApplePay.

    Apple should promote merchants in commercials and on its website.
    This is one important awareness idea that Apple should roll out numerous Ads where a consumer using at large as well mom/pop small businesses and also should say like pharmacutical Ads(talk to your doctor), if you see newer terminal or NFC or Apple logo on terminal, than talk to merchant you like to use ApplePay
  • Reply 11 of 21
    wood1208wood1208 Posts: 2,874member
    Banks/credit card loose billions on credit card fraud. While they strengthening security on their back-end to make it hack proof, merchant side is still weak unless it uses new terminals with Apple-Pay kind of transactions. So, industry has no choice but accelerate adoption of ApplePay and similar mechanism. Creating awareness and making end-to-end system work flawlessly are two big factors in faster adoptions..
  • Reply 12 of 21
    technotechno Posts: 737member
    I wish Canadian banks would start getting on board. Most of our merchants have had the NFC terminals for years. Our debit cards have NFC and everyone is ready and educated. We just need the banks to embrace ApplePay. I am sick of having to use my American credit card for ApplePay.
    Mr_Grey
  • Reply 13 of 21
    mac_128mac_128 Posts: 3,454member
    fortify7 said:
    I like Apple Pay so much that I switched entirely to Walgreens. So, retailers need to beware if they choose to go against the consumer. I'm frankly tired of hearing my credit card was compromised. Apple Pay gives me piece of mind. 
    Wal-Mart doesn't accept Pay, and is even launching a competing contactless POS. Despite this Apple still let's them sell their most popular products there, and even gave them their newest, most personal product ever, in time to boost Wal-Mart's Holiday sales. Doesn't really sound like Apple much cares. And despite the boycotting actions of a few consumers like you, I seriously doubt it will have much impact on merchants like Wal-Mart. Walgreens is significantly more expensive than CVS for many products. So at the end of the day, the average customer that's going to make or break Pay is going to go where the best value is. And if Apple is encouraging customers to go to a store like Wal-Mart to buy their products, despite not accepting their Apple's own superior payment system, what chance is there any serious boycott of such stores will happen?

    By the way, do you use the credit cards on Pay for any other non-Pay purchases? If so, your specific Pay purchases may be secure, but your card is as still insecure as always with any other purchase.
  • Reply 14 of 21
    Mr_GreyMr_Grey Posts: 118member
    ...
    There are three elements to the equation.
    (1) the POS hardware in the store. Until that is upgraded ApplePay won't work. Do you think elves come in at night and install the new ones? Sansung is making a big deal out of the fact their SamsungPay works with the old hardware (while it's still in use)—with the new hardware they've still got to get the financial institutions on board or they are dead in the water. I think 2016 is the year everyone is to go to new hardware.
    (2) The customer. Unless their bank or credit union has signed on with ApplePay they can't use it even if they are in front of a new terminal with their new iPhone.
    (3) The banks and credit unions who issue credit cards to their customers. Here's where Apple has been putting their efforts. These are the institutions that have to change their software to handle ApplePay. The customers and the POS hardware is helpless until these institutions get on board. These are the real gatekeepers. 
    ...
    I have to disagree with the bolded part in Item 3, at least in terms of international adoption.  Canada and Australia for instance could be considered to have Items 1 and 2 in abundance.  These things are "done" in those countries and all that's required is to convince the Banks to sign on.  

    What has actually happened is that all the banks in those countries have balked at their original "we will probably support it" posture and are now adamantly opposed to it.  We are now over a year past the original predicted launch date in those countries.  Apple, at least as far as any reporters have been able to find out, has basically just sat on their hands in regards this situation.  There are no Apple emissaries we know of trying to convince those banks to sign on.  They may be working with the US banks, but most of them are already onboard anyway.  

    Numbers 1 and 2 are really only problems in the US market, so I expect what's really happening is that Apple is doing what it always does and is focussing on the first two items in the USA (and only the USA), and is essentially doing nothing to drive Apple Pay adoption anywhere else.  The fact that they teamed up with American Express in Canada and Australia is actually a big f-you to the banks in those countries so it seems unlikely they are actually working with them in any collaborative way. 
    edited January 2016
  • Reply 15 of 21
    Blah blah blah. 

    I really hope we can get some updates on how many POS terminals are ApplePay-compliant, and what proportion of total that is. Adding more credit card companies or banks is essentially meaningless at this point. 
    The second half of your statement is ignorant beyond measure.

    There are three elements to the equation.
    (1) the POS hardware in the store. Until that is upgraded ApplePay won't work. Do you think elves come in at night and install the new ones? Sansung is making a big deal out of the fact their SamsungPay works with the old hardware (while it's still in use)—with the new hardware they've still got to get the financial institutions on board or they are dead in the water. I think 2016 is the year everyone is to go to new hardware.
    (2) The customer. Unless their bank or credit union has signed on with ApplePay they can't use it even if they are in front of a new terminal with their new iPhone.
    (3) The banks and credit unions who issue credit cards to their customers. Here's where Apple has been putting their efforts. These are the institutions that have to change their software to handle ApplePay. The customers and the POS hardware is helpless until these institutions get on board. These are the real gatekeepers. 

    You will notice that the retail stores are not part of the above list of three elements. You will also notice from the comments that the retail stores that can process ApplePay don't necessarily know it. If they have the new POS hardware, it makes no difference unless the customer banks with an institution who is on-board with ApplePay. Except for a short list of stores that want a cut of the credit card transaction and want to transfer the liability of credit card fraud off to their customers (I'm talking about you, Walmart)... ApplePay will soon work everywhere there's a new POS terminal.

    Meanwhile, once the new POS terminals are in a store, Samsung Pay will be sucking air when the financial institutions cut over to higher security transactions... with the possible exception of the 30 banks that have signed onto Samsung Pay. One thousand (and counting) poised to handle ApplePay, and 30 behind Samsung Pay — which one you want to bet on winning?
    You may wish to look in the mirror before calling others (or their posts) "ignorant."

    1) See post #7 in response to @cali's post.

    2) In the US eleven (yes, eleven) banks account for 80% of all credit cards -- four account for 50%. All are on ApplePay. Statistics are similar in other major economies. Look it up and educate yourself before throwing out cheap insults.

    3) See (2) above.
  • Reply 16 of 21
    Rayz2016Rayz2016 Posts: 6,957member
    This is very interesting. I'm in the UK and you can't walk down the high street of any major town without seeing the ApplePay logo stuck to a window. The major supermarket chains are all on board (except Sainsburys, though I haven't checked recently). We've had NFC terminals for years, so ApplePay just popped up over night. 

    I have one small criticism though: they should implement 3D touch on the wallet so that you can quickly change cards with one hand. While you're running stuff through the checkout, you only have one hand free for fiddling with your phone.

    At some point, all US merchants will need to install NFC terminals, otherwise they'll be liable for fraudulent transactions that happen in their stores. I don't think Apple needs to be in the business of making NFC hardware. The retailers will install new terminals. They haven't really got much of a choice.
  • Reply 17 of 21
    dtidmore said:
    Alluding that merchants are specifically holding back accepting Apple Pay is simply misdirection...
     
    We have got to stop accepting that merchants are the issue.  Look for the new terminals and give it a try as it only takes a moment to see if NFC is alive. 
    It's not misdirection when they are part of the problem. And merchants are absolutely part of the problem when they either deliberately don't accept ApplePay but have the proper terminal, are ignorant of the fact that their terminals will accept ApplePay, or know that they do accept it but fail to train their staff on that fact and how to handle it. There are a lot of them that fall into all three categories.  

    Particularly on the latter point, any employee who works at an NFC enabled terminal should be able to guide a first time AP customer through the steps, just as they do with chipped cards. Managers make sure their staff knows how to help a customer with a credit card, chipped credit card, and debit card. Not so much with ApplePay. The latter may apply equally to Google Wallet. It's not our job to train a merchants staff, but many of us do, all the time.

    How 'bout if we video a transaction where we perform a training transaction, and send Apple a link to the video with the merchant's address. Apple gives us an iTunes credit and then contacts the store or their Corporate HQ with a polite WTF follow up. Persuading a store, especially a non-chain store to upgrade their gear is always a tougher sell.

    Getting a bunch of banks on board is all well and good, but it's not much help when the store level implementation is stagnant.
    edited January 2016
  • Reply 18 of 21

    mac_128 said:

    By the way, do you use the credit cards on Pay for any other non-Pay purchases? If so, your specific Pay purchases may be secure, but your card is as still insecure as always with any other purchase.
    That's the whole point of going to those places that do use ApplePay in the first place- to minimize the possibility of your info being "hacked". Allowing for the whole statistical variables thing, simplistically speaking if you make ten stops for purchases and five of them accept ApplePay, there is the potential that your card is generally safer than if none of those stops accepted ApplePayl

    I remember when credit cards came out. First it was "do you accept" credit cards, then it was "do you accept "Whatever" credit cards. Then there was the ATM card thing. "Yes credit cards, no ATM cards" And "Yes, we accept ATM cards, but not that one" etc.

    The benefits of ApplePay are solid, but the alternative- credit cards, ATM cards, and occasionally cash, are too ubiquitous for it to spread quickly, without Apple's concerted help.

    Apple would (and we) would be better served with getting more merchants in the game than more banks. Banks are good, sure, but not much help if their customers aren't using ApplePay.
  • Reply 19 of 21
    Square's new NFC/Chip/ApplePay terminal isn't due to be shipped until March 2016. It is not expensive ($49), but the delay is holding back many independent merchants, including myself, from accepting Apple Pay.
  • Reply 20 of 21
    misamisa Posts: 827member
    techno said:
    I wish Canadian banks would start getting on board. Most of our merchants have had the NFC terminals for years. Our debit cards have NFC and everyone is ready and educated. We just need the banks to embrace ApplePay. I am sick of having to use my American credit card for ApplePay.
    The thing is, the ones that have US branches (TD, BMO and RBC) actually do. Like I tried my Canadian BMO card and got a different error message than what I got from my Credit Union or other Canadian Bank card's. So clearly they have the infrastructure and are just dragging their heels trying to get you to use their apps, or non-Apple devices. 
Sign In or Register to comment.